Inequality of disposable income fell to lowest level since 1986 in 2011/12, according to new figures released by the Office of National Statistics.
This was partly driven by earnings falling for higher income households and by changes in taxes and benefits.
These changes include an increase in the income tax personal allowance and changes to National Insurance Contributions and Child Tax Credits.
More top news
Launching Plaid Cymru's campaign, leader Leanne Wood, says the general election offers Wales an "unprecedented opportunity" for change.
A woman who sent £1,000 to her jihadi boyfriend in Syria before he dumped her has avoided a prison sentence today
Ed Miliband has launched Labour's General Election campaign with the promise of a "double lock" to safeguard the future of the NHS.