Britain's Richest Families to Gain £125 per Month in 1995

Strategic Insights -

The Conservative government's tax changes have significantly benefited the rich, while disproportionately affecting the poor. An independent report by the Institute for Fiscal Studies shows that the richest families in Britain will be £125 per month better off in 1995 than they were in 1985. This gain comes at the expense of the poor, with the bottom four income bands experiencing a decline in their average income.

Key Takeaways:

  • The richest families in Britain will benefit from a £125 per month gain in 1995, compared to 1985, due to Conservative tax changes.
  • The poorest four income bands will experience a decline in their average income, while the top six income bands will gain.
  • The gains for the top income bracket are five times greater than those for the next wealthiest 10 per cent, with an average gain of £31.30 per week.
  • Even within the wealthiest 10 per cent, the gains are heavily weighted in favor of the top 1 per cent of earners, who have seen a 10 per cent boost in their post-tax incomes.
  • The poorest 10 per cent of households will have seen a 3 per cent reduction in their incomes, or a £3 per week loss.
  • Unemployed couples with children have seen their incomes shrink by 2.7 per cent on average, while one-parent families have seen their incomes cut by 1 per cent.
  • 66 per cent of the poorest households suffered financially, while only 7 per cent gained.
  • 75 per cent of the richest households benefited, while 20 per cent were worse off.

Statistics:

  • The richest families in Britain will be £125 per month better off in 1995 than in 1985.
  • The gains for the top income bracket are five times greater than those for the next wealthiest 10 per cent of earners.
  • The top 1 per cent of earners will see their post-tax incomes boosted by 10 per cent.
  • The poorest 10 per cent of households will experience a 3 per cent reduction in their incomes.
  • Unemployed couples with children will have seen their incomes shrink by 2.7 per cent on average.
  • One-parent families will have seen their incomes cut by 1 per cent.
  • 66 per cent of the poorest households suffered financially, while only 7 per cent gained.

Sources:

  • "IFS cuts Independent Report" by The Times, undated (note: exact date not mentioned in the text)
  • Institute for Fiscal Studies (IFS)
  • Gordon Brown
  • Leader comment in The Times, page 21