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Income gaps lowest since 1986

Inequality of disposable income fell to lowest level since 1986 in 2011/12, according to new figures released by the Office of National Statistics.

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Households paid 20% of income on direct taxes in 2011/2012

The Office for National Statistics has released new figures looking at the effects of taxes and benefits on household incomes in 2011/12.

  • Disposable incomes have fallen since the start of the economic downturn, with average equivalised income falling by £1,200.
  • Average original income (before any taxes or benefits) was £31,500.
  • On average, households paid 20% of their gross income in direct taxes such as income tax and council tax.
  • The top fifth of households had an average income of £78,300, 14 times that of the bottom fifth, who had an average of £5,400.

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