British government making poor poorer, rich richer

This video from Britain says about itself:

Wealth inequality in the UK

8 October 2013

Inequality has been rising for 30 years. The gap between rich and poor is the widest since the second world war. If current trends continue, we will have reached Victorian levels of inequality in 20 years.

Well, since 2013 current trends did continue.

By Felicity Collier in Britain:

Britain faces worst inequality levels since Thatcher

Thursday 2nd February 2017

LIVING standards in Britain are at their worst since the days of Margaret Thatcher, a leading think tank warned yesterday.

The Resolution Foundation predicts that poorer households with children are suffering the most and will see “almost no income growth” before 2020.

On average, household income growth looks set to fall to 1.2 per cent this year.

The findings reveal that the current government is the worst for low and middle households since the 1960s, when comparable records began.

“Very significant cuts” of over £12 billion to working-age benefits were blamed for lower earners’ falling living standards.

The charity noted that at the other end of the spectrum, the government is introducing tax cuts which will predominantly benefit middle to higher-income households.

Resolution Foundation director Torsten Bell said: “This could leave Britain with the worst of both worlds on living standards — the weak income growth of the last parliament, and rising inequality from the time Margaret Thatcher was in Downing Street.”

Shadow chancellor John McDonnell said: “This report is damning of the unfair economic policies of this Chancellor, with the poor getting poorer and the rich getting richer.”

Almost six million workers in Britain don’t earn enough to cover their basic costs, according to The Living Wage Foundation.

In separate research from debt charity StepChange yesterday nearly a third of workers were found to have had no spare cash for emergency bills in the past year.

The charity said many households are living in a “perilous financial state,” as a fifth said they would be unable to get by for more than a month if their income fell by a quarter.

18 thoughts on “British government making poor poorer, rich richer

  1. Thursday, 2 February 2017

    May government is Thatcherite says the Resolution Foundation

    THE just-published Resolution Foundation’s annual audit of living standards shows that the May government, far from seeking to lighten the load of the poor, is driving hard towards ‘the largest rise in inequality since the Parliament when Margaret Thatcher was Prime Minister’.

    It finds that ‘Britain is on course for a major living standards slowdown, with typical households seeing almost no income growth over the remainder of this Parliament.’ Further it finds that the government with its ‘Squeeze on poorer households, rather than an 80s-style boom for the rich, is driving 21st century inequality.’

    Its report, Living Standards 2017, shows that the UK’s recent ‘mini-boom’ in living standards – in which typical household incomes (before housing costs) grew by over 2 per cent in both 2014/15 and 2015/16 – has ground to a halt as a result of rising inflation and a plateauing of employment in recent months.’

    It adds, ‘Typical household income growth looks set to fall to 1.2 per cent this year (2016/17). The Foundation’s forecast for living standards over the parliament, which combines the OBR’s latest projections for pay, prices and employment with the impact of government policy, shows that this slowdown is set to continue.’

    Further, that: ‘Stagnation in pay growth, which is forecast to bite towards the end of 2017 as inflation rises further, coupled with the rollout of more than £12bn of welfare cuts, means that typical household incomes after housing costs are set to grow by a meagre 0.5 per cent a year over the next four years.’

    The report indicts the Tories, stating that ‘the unequal impact of the upcoming squeeze is the result of government policy on tax and benefits. While richer households were most affected by the pay squeeze in the wake of the financial crisis, the report shows that the richest fifth of households are set to enjoy small incomes gains of around 4 per cent over the next four years, while incomes across the entire poorest half of households are set to fall by an average of 3 per cent.

    ‘This would make the current parliament the worst on record for low and middle households since comparable records began in the 1960s, with poorer families with children particularly affected. A typical family with children is set to have a lower disposable income (after housing costs) in 2020-21 (£18,300 in current prices), than a typical family this year (£18,900).’

    It is in this crisis situation, where the May government is consciously setting out to drive living standards backwards to the 1950s, that the trade union leaders are sitting back with their arms folded and actually praising May for her propaganda posture that she wants a ‘fair Britain’.

    At the same time as living standards are being driven down, the NHS is being destroyed and threatened with mass closures and privatisation by the 44 STPs established by the May government.

    On the issue of social care, the Parliamentary Under-Secretary of State for Community Health and Care, David Mowat, has just declared that the way forward is for people to have the same responsibility for looking after their parents as they have for their children.

    This is not just back to the 1950s, this is back to the 1900s before the Labour Party was founded and the mass of the people were reacting to massive poverty by forming the mass trade unions and organising mass strikes to raise their living standards. They then went into politics in 1906 when they formed the Labour Party and then in 1945 returned the Attlee government with a message that it had to build a Welfare State.

    This is what May and Co are now seeking to destroy.


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