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Rich and poor gap 'narrows' in UK Rich and poor gap 'narrows' in UK
(about 1 hour later)
The gap between rich and poor in the UK has decreased since 2000, an international survey has concluded.The gap between rich and poor in the UK has decreased since 2000, an international survey has concluded.
The Organisation for Economic Co-operation and Development (OECD) says the decline in inequality in Britain has been "remarkable".The Organisation for Economic Co-operation and Development (OECD) says the decline in inequality in Britain has been "remarkable".
The report's author told the BBC: "...the poor have been getting richer more rapidly than the rich since 2000."The report's author told the BBC: "...the poor have been getting richer more rapidly than the rich since 2000."
But the report says the UK still has one of the highest levels of income inequality in the developed world.But the report says the UK still has one of the highest levels of income inequality in the developed world.
The OECD report covers the period to 2005. The OECD report, which covers the period up to 2005, found the wealth gap widened in the UK - as it did in most other developed countries - between the mid-80s and mid-90s.
Since the 1980s the gap between rich and poor has been growing gradually wider in most developed countries, it says. In the UK, the gap between higher and lower incomes widened by 15% over that period, and earning inequality is worse than in most of the organisation's 30 member countries, it says.
In the UK, the gap between higher and lower incomes has widened by 15% over that period, and earning inequality is worse than in most of the organisation's 30 member countries, it goes on.
'Hello' effect'Hello' effect
But since 2000, measures of poverty and income inequality in the UK have fallen, narrowing the wage gap.But since 2000, measures of poverty and income inequality in the UK have fallen, narrowing the wage gap.
BBC social affairs correspondent James Westhead said many people in the UK were not aware of being better off and the report blamed the so-called "Hello Magazine effect", where the public would read about the super-rich getting richer and would feel worse off as result. BBC social affairs correspondent James Westhead said many people in the UK were not aware of being better off and the report blamed the so-called "Hello magazine effect", where the public would read about the super-rich getting richer and would feel worse off as result.
Now we are entering a recession, which may increase inequality and poverty again Mark Pearson, OECD
He also said the amount governments spend on taxation and redistributing wealth across developed countries and in the UK is higher than at any time in history.He also said the amount governments spend on taxation and redistributing wealth across developed countries and in the UK is higher than at any time in history.
Mark Pearson, who wrote the OECD report, told BBC Radio 4's Today programme the UK government was not shouting about the drop in inequality. Mark Pearson, who wrote the OECD report, told BBC Radio 4's Today the "remarkable" reduction in the UK wage gap since 2000 is the largest fall in all developed countries.
"To some extent this reflects the Blairite approach; that you do, almost, the redistribution by stealth," he said. " ...you don't advertise the fact that you've actually put an awful lot more resources into helping the least well off in society."To some extent this reflects the Blairite approach; that you do, almost, the redistribution by stealth," he said. " ...you don't advertise the fact that you've actually put an awful lot more resources into helping the least well off in society.
"Both ends of the distribution have been getting richer, but the poor actually have been getting richer more rapidly than the rich since the year 2000.""Both ends of the distribution have been getting richer, but the poor actually have been getting richer more rapidly than the rich since the year 2000."
The main reasons behind fewer people living in poverty in the UK were higher employment and the redistribution of wealth, he also said. The main reasons behind fewer people living in poverty in the UK were higher employment - particularly among the low-skilled and mothers - and the redistribution of wealth, he also said.
However, Mr Pearson said that the narrowing of the wealth gap appeared to have "flattened off" in the years since 2005.
"Now we are entering a recession, which may increase inequality and poverty again," he warned.
The Paris-based OECD's 30 members make up the world's richest and most developed countries.