Oxfam: how to tackle Britain's growing inequality gap


Updated on 13 September 2016 | 2 Comments

The gap between rich and poor is getting even bigger, according to Oxfam. Here's what we can do about it.

Britain is one of the most unequal countries in the developed world, according to Oxfam.

A new report from the charity says that the richest 1% of the population now owns 20 times more than the poorest 20% of the population (nearly 13 million people) combined.

Oxfam is calling on Prime Minister Theresa May to use her speech to the Conservative Party Conference to explain how she will keep her promise to close the gap between ‘haves’ and ‘have nots’. 

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It's encouraging the Government to adopt a four-point plan to tackling equality:

  • Delivering on Theresa May's pledge to give a greater voice to employees through greater representation on company boards
  • Incentivising employers to 'up-skill' low-skilled jobs and low-skilled workers to ensure more people can access decent work
  • Addressing pay disparities through the adoption of pay ratios and curbing of excessive pay at the top and address pay levels at the bottom
  • Tackling corporate tax avoidance and putting an end to the era of tax havens

Rachael Orr, head of Oxfam's UK Programme said:

"Oxfam welcomes the fact Theresa May is embracing this agenda. Addressing the practises of unscrupulous business needs to be a central part of the Government's plans to even up the economy. That means closing wage gaps, incentivising investment in companies' staff and making sure they pay their fair share of taxes." 

The report says that, without action, nearly 400,000 more households could be living in poverty by 2030.

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Jobs 'no escape from poverty'

Oxfam outlines that, in many cases, a job isn’t a way out of poverty because of low wages, increasingly insecure work and the rising cost of living.

More than half of low-income households in the UK have at least one working adult, but too many of them are trapped in low paid jobs without a means of progression.

For people with caring responsibilities, who are predominantly women, it’s even harder still.

Research carried out for Oxfam by the London School of Economics has found that inequality is a major barrier to reducing poverty in the UK.

It shows that poverty rates are generally higher when inequality is higher, while increases in income inequality are associated with increases in income poverty rates.

More detailed research will be published later this year.

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Inequality's role in Brexit

The charity also says that inequality contributed to the vote for Brexit, and the outcome shows how polarised our country is.

Many people believe they have little control in society and feel ‘completely shut out of politics’. 

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More on inequality:

Opinion: we have a problem with inequality

Intergenerational inequality growing on incomes, housing costs and inflation

Wealthy will be biggest winners from Brexit

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