Are we really in it together?

By Michael Burton | 22 March 2016
  • Michael Burton

So are we in it together? Clearly not according to Iain Duncan Smith, who maintains he quit because spending cuts were falling disproportionately on the poor especially through the withdrawal of benefits. But all is not as it seems.

Ever on the ball, the Institute for Fiscal Studies (IFS) helpfully produced a summary of income inequality this week. In broad terms inequality has declined since the recession as more jobs have helped the lower paid while falling real wages have hit those in work, including higher earners. Overall those on average earnings and above have been protected from tax and benefit changes while those on £100,000 and higher – most local authority chief executives for example – have seen ‘significant’ tax increases.

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