Economic and Social Inequality

Debate between Lord Lang of Monkton and Lord Ashton of Hyde

Thursday 18th June 2015 Lords Chamber

[Lord Ashton of Hyde]

My Lords, the facts do not bear out the noble Lord’s question. I accept that wealth inequality is higher than income inequality—although he is shaking his head—and that is the case both in the UK and across the OECD. However, it has not changed since records began in 2006. Internationally, the level of wealth inequality in the UK remains below the OECD average and significantly lower than that seen in the US.

[Lord Lang of Monkton (Con)]

My Lords—

--- Later in debate ---

[Lord Lang of Monkton]

My Lords, in addition to the excellent answers already given by my noble friend to the noble Lord, Lord Howarth, should he not also draw attention to the fact that raising the tax threshold has also been an enormous advantage to those at the lower end of the social equality scale? This, together with the other excellent points he has made, completely confounds the arguments coming from the Benches opposite.

[Lord Ashton of Hyde]

My noble friend is absolutely correct. Since 2007-08, the annual average disposable income of the poorest 20% of households has risen by £100 in real terms, while the average annual income since 2007-08 of the richest 20% has fallen by £3,000.