Source: Institute for Fiscal Studies (IFS) – Living standards, poverty and inequality in the UK
Notes:
- The 90:10 ratio compares the 90th percentile of incomes (the income of the person richer than 90% of the population) with the 10th percentile (the income of the person richer than 10% of the population). The higher the number, the greater the income inequality is between these two groups.
- Incomes have been measured net of taxes and benefits and before housing costs have been deducted. All incomes have been equivalised using the modified OECD equivalence scale.
- The chart shows the 90:10 income inequality ratio in calendar years between 1961 and 1992, and in financial years from 1993-94.
- Calculations use the Family Resources Survey (FRS) and, prior to 1994–95, the Family Expenditure Survey (FES).
- These figures provide a broadly representative sample of households in Great Britain until 2001–02 (i.e. not including Northern Ireland) and in the whole United Kingdom from 2002–03 onwards.
- The IFS website includes more information on the methodology used in the living standards, poverty and inequality statistics.
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