GINI coefficient

1980s-1990s

Deregulation of financial markets

• prioritisation of state industries (eg British gas, BT) increased wealth for shareholders but not for others

• Decline in trade union power (eg mining strikes)

• Cut to income tax for high earnings and reduce welfare benefits widened the gap

• Rising unemployment in industrial areas during deindustrialisation

1990s-2000s

Inequality remains high but fluctuates

• Inequality state around 0.34 - 0.36 through the 1990s

• Early 1990s recession (1991–1992) hit poorer household’s hardest

• New labour government began policies aimed at reducing child poverty

• Working families tax credit and minimum wage introduced

• Public sector job growth slightly reduced in inequality by late 1990s

2000s-2008s

• Labour government increased spending on education, NHS and welfare

• Tax credit supported low income families

• Minimum wage continue to rise

• Globalisation and growth in financial services kept top income high

2008-2014

Dip to renewed rise

• 2008 financial crisis caused temporary fall in inequality

High earners income for example bankers bonuses fell sharply

After 2010

• Coalition government authority removed welfare benefits in public spending

• Public sector pay freezes and cut to housing benefits for owners

• Inequality stabilised but remained high (around 0.33)