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| Minority ethnic families earning up to £8,900 less than white Britons | Minority ethnic families earning up to £8,900 less than white Britons |
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| Minority ethnic families in the UK earn as much as £8,900 a year less than their white British counterparts, according to a study. | Minority ethnic families in the UK earn as much as £8,900 a year less than their white British counterparts, according to a study. |
| Bangladeshi and Pakistani households earn about a third less on average than the median for white families, while earnings in black African families are typically about a fifth less, the Resolution Foundation thinktank found. | Bangladeshi and Pakistani households earn about a third less on average than the median for white families, while earnings in black African families are typically about a fifth less, the Resolution Foundation thinktank found. |
| However, the study also said Bangladeshi households experienced the fastest income growth – 38% in real terms – between 2001-03 and 2014-16, while Pakistani households’ income grew 28% in that period. | However, the study also said Bangladeshi households experienced the fastest income growth – 38% in real terms – between 2001-03 and 2014-16, while Pakistani households’ income grew 28% in that period. |
| “Differences in living standards between ethnicities in Britain too often go ignored,” said Adam Corlett, the senior economic analyst at the foundation. “This matters because income gaps between different minority ethnic groups and white British households are significant and persistent. | “Differences in living standards between ethnicities in Britain too often go ignored,” said Adam Corlett, the senior economic analyst at the foundation. “This matters because income gaps between different minority ethnic groups and white British households are significant and persistent. |
| “However, we should be encouraged by the fact that there have been big improvements in some instances, such as the impressive employment gains seen among black, Bangladeshi and Pakistani men and women. | “However, we should be encouraged by the fact that there have been big improvements in some instances, such as the impressive employment gains seen among black, Bangladeshi and Pakistani men and women. |
| “Thanks to this and other factors, since the turn of the millennium Bangladeshi and Pakistani households have actually seen the fastest income growth.” | “Thanks to this and other factors, since the turn of the millennium Bangladeshi and Pakistani households have actually seen the fastest income growth.” |
| The report found that typical Bangladeshi household incomes were £8,900, or 35%, lower than the white British median. For Pakistani households, the deficit was £8,700 and typical black African households earn £5,600 less. | The report found that typical Bangladeshi household incomes were £8,900, or 35%, lower than the white British median. For Pakistani households, the deficit was £8,700 and typical black African households earn £5,600 less. |
| The thinktank said the gaps were even larger when housing costs were taken into account. It said that more than half of white British families owned their homes, compared with only a quarter of Bangladeshi, black and other white, which it defined as “primarily European”. | The thinktank said the gaps were even larger when housing costs were taken into account. It said that more than half of white British families owned their homes, compared with only a quarter of Bangladeshi, black and other white, which it defined as “primarily European”. |
| “As a result, the disposable income gap between white British households and Bangladeshi households increases to £9,800 (44%) when housing costs are considered,” it said. | “As a result, the disposable income gap between white British households and Bangladeshi households increases to £9,800 (44%) when housing costs are considered,” it said. |
| The analysis suggested that, while still significant, the gaps had narrowed in places. The income growth for Bangladeshi households, for example, was nearly three times the rate of white British families, while Pakistani households also made up some ground. | The analysis suggested that, while still significant, the gaps had narrowed in places. The income growth for Bangladeshi households, for example, was nearly three times the rate of white British families, while Pakistani households also made up some ground. |
| Theresa May promised during the general election to tackle the “injustice” of pay inequality, saying firms should be made to disclose how pay rates vary by ethnicity. From next year, large companies will have to report on the extent of the gender pay gap in their businesses. | Theresa May promised during the general election to tackle the “injustice” of pay inequality, saying firms should be made to disclose how pay rates vary by ethnicity. From next year, large companies will have to report on the extent of the gender pay gap in their businesses. |
| Last year, the prime minister announced an audit of how people of different races are treated by public services, including examining relative incomes. But she has been criticised for postponing the publication of the report until autumn. | Last year, the prime minister announced an audit of how people of different races are treated by public services, including examining relative incomes. But she has been criticised for postponing the publication of the report until autumn. |
| Following the release of the Resolution Foundation’s analysis on Monday, the prime minister’s spokesman said: “This is a hugely important issue, which is why the prime minister ordered a race disparity audit to confront and address unfairness in the system. | Following the release of the Resolution Foundation’s analysis on Monday, the prime minister’s spokesman said: “This is a hugely important issue, which is why the prime minister ordered a race disparity audit to confront and address unfairness in the system. |
| “We have never shied away from the fact there are disparities between how people are treated depending on their race. We remain committed to addressing these issues head-on and will be publishing the results of the audit in the autumn.” | “We have never shied away from the fact there are disparities between how people are treated depending on their race. We remain committed to addressing these issues head-on and will be publishing the results of the audit in the autumn.” |
| The foundation said the gap between the employment rates for men and women partly accounted for the income disparities. It said a Pakistani or Bangladeshi woman was about half as likely to be employed as a white woman, though that rate represents an increase and may explain some of the recent improvements in those groups’ living standards. | The foundation said the gap between the employment rates for men and women partly accounted for the income disparities. It said a Pakistani or Bangladeshi woman was about half as likely to be employed as a white woman, though that rate represents an increase and may explain some of the recent improvements in those groups’ living standards. |
| The thinktank added: “Employment rates for Pakistani, Bangladeshi and black men have also increased substantially, with growth of 10, 17 and six percentage points respectively since 2001-03, while the rate among white men has been flat.” | The thinktank added: “Employment rates for Pakistani, Bangladeshi and black men have also increased substantially, with growth of 10, 17 and six percentage points respectively since 2001-03, while the rate among white men has been flat.” |
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