The inequality gap between the UK's richest and poorest has not reduced after Labour's decade in power, according to official figures. Data from the Office for National Statistics into taxation and benefit levels showed those on the highest incomes had received the biggest pay rises. The gains had outweighed the impact of tax credits, the minimum wage and extra spending on schools and hospitals. The ONS found incomes in the richest fifth of households in the UK were 16 times greater than in the poorest fifth – £68,700 compared with £4,200. Increases in the use of so-called sin taxes, such as cigarette and alcohol duty, had hit the poorest most. The ONS said: ‘After 1995/96, inequality began to rise again, reaching a peak in 2001/02 – actually at a level very similar to that seen in 1990. ‘From 2001/02, there was a small reduction in income inequality, although the latest figures for 2005/06 show an increase over the previous year, and latest evidence suggests that income inequality may be increasing again.'
