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Rich-poor gap 'wider than 1970s' Rich-poor gap 'wider than 1970s'
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The gap between rich and poor in the UK is wider now than 40 years ago, a government-commissioned report says.The gap between rich and poor in the UK is wider now than 40 years ago, a government-commissioned report says.
"Deep-seated and systemic differences" remain between men and women and minority groups in pay and employment, the National Equality Panel found."Deep-seated and systemic differences" remain between men and women and minority groups in pay and employment, the National Equality Panel found.
It said in areas such as neighbourhood renewal, taxes and education, policy action was needed to limit inequality.It said in areas such as neighbourhood renewal, taxes and education, policy action was needed to limit inequality.
The issues raised would need "sustained and focused action", Equalities Minister Harriet Harman said.The issues raised would need "sustained and focused action", Equalities Minister Harriet Harman said.
"But for the sake of the right of every individual to reach their full potential, for the sake of a strong and meritocratic economy and to achieve a peaceful and cohesive society, that is the challenge that must be met," she added."But for the sake of the right of every individual to reach their full potential, for the sake of a strong and meritocratic economy and to achieve a peaceful and cohesive society, that is the challenge that must be met," she added.
Earning powerEarning power
Apparent discrimination against people from ethnic minorities was revealed in the report, with those from nearly every minority group less likely to be in paid work than white British men and women.Apparent discrimination against people from ethnic minorities was revealed in the report, with those from nearly every minority group less likely to be in paid work than white British men and women.
The panel - set up by the government in 2008 - found that despite women up to the age of 44 having better qualifications than men, men are still paid up to 21% more per hour. The panel - set up by the government in 2008 - found that despite women up to the age of 44 having better qualifications than men, men were still paid up to 21% more per hour.
But the authors pointed out that some of the greatest differences came within social groups. But the authors pointed out that some of the greatest differences come within social groups.
Among women, many work part time, earning less than £7.20 an hour, much less than the median pay of £9.90 across the country. Among women, many work part-time, earning less than £7.20 an hour, much less than the median pay of £9.90 across the country.
"Most people and nearly all political parties subscribe to the ideal of 'equality of opportunity'," said panel chair John Hill. "Most political parties and people subscribe to the ideal of 'equality of opportunity'," panel chair Professor John Hills, of the London School of Economics, told the BBC.
"But advantage and disadvantage reinforce themselves over the life cycle. It is hard to argue that the large and systematic differences in outcomes which we document result from personal choices made against a background of equality of opportunity, however that is defined." "But how do you create a level playing field when there are such differences in the resources available to people?
Mr Hill explained that the type of job and pay a parent had could have a cumulative effect throughout a person's life, setting them on "tracks that make all sorts of differences" - such as the school catchment area they lived in, their ability to help their child on to the property ladder, and ultimately their wealth as they got older. "Some can afford to live in the catchment area of a good school, some can pay for private tuition for their children and some are able to help their children to get on the housing ladder."
By retirement the difference between rich and poor can be "colossal", the report added. The study said that the type of job and pay a parent had could have a cumulative effect throughout a person's life, setting them on "tracks that make all sorts of differences".
The panel pointed out that half of those who have worked in the top professions have net assets worth more than £900,000, while a tenth of those who have had unskilled jobs have property, savings and possessions worth less than £8,000. By retirement, the difference between rich and poor can be "colossal", the report added.
The panel pointed out that half of those who have worked in the top professions have net assets worth more than £900,000, while a 10th of those who have had unskilled jobs have property, savings and possessions worth less than £8,000.
BBC social policy correspondent Gillian Hargreaves said the report would make "awkward reading for the government" as Labour had made tackling inequality a priority.BBC social policy correspondent Gillian Hargreaves said the report would make "awkward reading for the government" as Labour had made tackling inequality a priority.
Theresa May, shadow minister for women and equalities said: "It is unbelievable that Labour thinks it can claim to be the party of aspiration when its failure to tackle the causes of poverty have let down so many lives."Theresa May, shadow minister for women and equalities said: "It is unbelievable that Labour thinks it can claim to be the party of aspiration when its failure to tackle the causes of poverty have let down so many lives."
Liberal Democrat shadow children, schools and families secretary David Laws added that Gordon Brown's government had "run out of ideas for tackling the lack of opportunity for so many children and the chasm that separates the rich from the poor." Liberal Democrat children, schools and families spokesman David Laws added that Gordon Brown's government had "run out of ideas for tackling the lack of opportunity for so many children and the chasm that separates the rich from the poor".