Income and Wealth Inequality

Lord Bilimoria Excerpts

Wednesday 26th November 2014 Lords Chamber

[Lord Newby]

My Lords, I just think that the noble Lord’s figures are wrong. On inequality, I would like to quote Chris Giles from last week’s Financial Times, since noble Lords opposite clearly find it difficult to accept what I am saying about it.

“Since 2008, the earnings distribution has been flat as a pancake. And because the coalition government has protected people dependent on social security more than the working population, inequality of net incomes has edged down”.

[Lord Bilimoria (CB)]

My Lords, does the Minister agree, following the noble Lord, Lord Stern, that the Gini coefficient has gone up significantly over the last three decades? There is no question about that, regardless of who has been in government. Does he agree that the living standards of people in this country are far higher than three decades ago, when Britain was the sick man of Europe?

[Lord Newby]

My Lords, I absolutely agree with the noble Lord. Noble Lords will be aware that real incomes are starting to rise again and are projected to do so over the next three or four years by all reputable forecasters.