6.1.3

Distribution of Wealth UK

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The Gap Between Rich and Poor in the UK

According to the Office of National Statistics there are huge wealth differences within and between specific groups in the UK

Distribution UK

Distribution UK

  • According to the Office of National Statistics, in the UK, the wealth held by the top 10 percent of the population is around four times greater than that of the bottom half of all households combined, and over 850 times greater than the least wealthy 10 percent of households.
  • There are also differences within and between specific groups.
In 2013-14 in the UK

In 2013-14 in the UK

  • 13.2 million people were living in poverty (below 60 percent of median income), that’s 21 percent of the population.
  • The majority of those living in poverty are from working-class backgrounds.
The main groups living in poverty (2013-14)

The main groups living in poverty (2013-14)

  • In households without work (50%).
  • In households with low pay (50% self-employed or in full/part-time work).
Within households at greater risk of poverty:

Within households at greater risk of poverty:

  • 13% were pensioners.
  • 16% were lone parents.
  • 28% were children.
  • 22% belonged to minority ethnic groups.
  • 22% were disabled.

Earnings UK

The amount of income a person generates varies widely.

2014 UK

2014 UK

  • In 2014 the UK Treasury figures showed the top 10% of earners in Britain having salaries which are equal to more than the bottom 40% of earner salaries combined.
The top decile

The top decile

  • The same Treasury data shows the top decile (a decile is any of the nine values that divide the sorted data into ten equal parts so that each part represents 1/10) of single adults earning a median income of £60,500, compared to just £8,600 among the bottom decile.
Disposable income

Disposable income

  • Income distribution between social groups and the amount of disposable income a person or family has in the UK varies enormously.
  • Variation occurs because many people have an income of less than 60% of the median income.
  • Disposable income is the money a person has left over after all taxes have been paid.
Average income

Average income

  • UK average income in 2014 was £26,500.

The Redistribution of Wealth and Income

In order to address the inequalities in wealth, successive governments introduce policies which attempt to redistribute wealth and incomes.

Redistribution

Redistribution

  • Redistribution of wealth refers to the transfer of wealth and income from one individual or group to another individual or group by means of social mechanisms, including:
Methods of redistribution

Methods of redistribution

  • Social welfare benefits – payments paid by the state to needy members of society.
  • Income tax – tax paid on earned or unearned income.
  • Inheritance tax – a tax paid when people give gifts of wealth.
  • Capital gains tax – a tax paid when gaining significantly from the sale of an asset.
Failures of the system

Failures of the system

  • Despite government policies, redistributing wealth has been largely unsuccessful due to people’s failure to claim benefits they are entitled to.
Tax evasion

Tax evasion

  • Tax evasion is also an issue: people do not always declare their income or wealth so they don’t have to pay tax on it.
  • Tax avoidance is where people, mainly the wealthy, employ accountants to find legal ways of avoiding paying tax and therefore redistribute their wealth.
Tax relief

Tax relief

  • Tax relief, where the amount of income tax a person pays is reduced, occurs when people pay money into their pension or make charitable donations.
  • The more a person pays into these areas the greater their tax relief which is why the rich have the most to gain from tax relief.
Jump to other topics
1

Theory & Methods

1.1

Sociological Theories

1.1.1Marxism1.1.2Feminism1.1.3Social Action Theories
1.2

Sociological Methods

1.2.1Types of Data1.2.2Positivism & Interpretivism1.2.3Research Design1.2.4Research Considerations1.2.5Values in Research1.2.6Modernity & Post-Modernity1.2.7Sociology as a Science1.2.8Sociology & Social Policy1.2.9End of Topic Test - Sociology Methods & Theories
1.3

Sources of Data

1.3.1Introduction1.3.2Experiments1.3.3Surveys1.3.4Longitudinal Studies1.3.5Questionnaires1.3.6Types of Questionnaires1.3.7Interviews1.3.8Observation1.3.9Case Studies1.3.10Documents1.3.11Official Statistics1.3.12End of Topic Test - Sources of Data
2

Education with Methods in Context

2.1

Role & Function of the Education System

2.1.1Introduction2.1.2Functionalist Theories2.1.3Marxist & Feminist Theories2.1.4The New Right
2.2

Educational Achievement

2.2.1Social Class: Internal Factors2.2.2Social Class: External Factors2.2.3Social Class: Attitudes to Education2.2.4Social Class: Difference in Achievement2.2.5Gender2.2.6Ethnicity
2.3

Relationships & Processes Within Schools

2.3.1Processes2.3.2Labelling2.3.3Categorisations2.3.4Student Experience2.3.5End of Topic Test -Education with Methods
2.4

Educational Policies

2.4.1Equality2.4.2Privatisation2.4.3Marketisation2.4.4Government Policies by Party2.4.5Globalisation2.4.6End of Topic Test- Educational Policies2.4.7Practice Exam Question - Social Policies
3

Option 1: Culture & Identity

3.1

Conceptions of Culture

3.1.1Culture3.1.2Mass Culture3.1.3Popular Culture3.1.4Global Culture3.1.5End of Topic Test - Culture and Identity
3.2

Identity & Socialisation

3.2.1Identities3.2.2Socialisation3.2.3Secondary Socialisation3.2.4Theories of Socialisation3.2.5End of Topic Test - Identity3.2.6Practice Exam Question - Socialisation & Equality
3.3

Social Identity

3.3.1Social Class3.3.2Upper & Middle Class3.3.3Working & Underclass3.3.4Social Class Evaluation3.3.5Gender3.3.6Changing Gender Identities3.3.7Ethnicity3.3.8Age3.3.9Disability3.3.10Nationality3.3.11End of Topic Test - Social Identity
3.4

Production, Consumption & Globalisation

3.4.1Production & Consumption3.4.2Globalisation3.4.3Evaluation3.4.4End of Topic Test - Production
4

Option 1: Families & Households

4.1

Families & Households

4.1.1Definitions4.1.2Functionalist & New Right Perspectives4.1.3Marxist & Feminist Perspectives4.1.4Postmodernist Perspective4.1.5End of Topic Test - Families & Households4.1.6Practice Exam Question - Function of Family
4.2

Changing Patterns

4.2.1Marriage4.2.2Divorce4.2.3LAT Relationships4.2.4Child-Bearing4.2.5Lone Parenthood4.2.6Diversity4.2.7The Sociology of Personal Life4.2.8Government Policies Post-WW24.2.9End of Topic Test - Changing Patterns
4.3

The Symmetrical Family

4.3.1The Symmetrical Family4.3.2Evaluation
4.4

Children & Childhood

4.4.1Childhood4.4.2Childhood in the UK4.4.3Childhood as a Social Construct4.4.4The Disappearance of Childhood4.4.5Child Abuse4.4.6Domestic Violence4.4.7End of Topic Test - Family & Childhood
4.5

Demographic Trends UK

4.5.1Introduction4.5.2Birth Rates4.5.3Death Rates4.5.4The Ageing Population4.5.5Studies on the Ageing Population4.5.6Migration4.5.7Globalisation4.5.8End of Topic Test - Demographics UK
5

Option 1: Health

5.1

Social Constructions

5.1.1The Body5.1.2Health, Illness & Disease5.1.3Disability5.1.4Models of Health & Illness5.1.5End of Topic Test - Social Constructions
5.2

Social Distribution of Healthcare

5.2.1Social Class5.2.2Gender5.2.3Ethnicity5.2.4Regional
5.3

Provision & Access to Healthcare

5.3.1The NHS5.3.2Inequalities in Provision5.3.3Sociological Explanations5.3.4Inequalities in Access5.3.5Inequalities in Access 25.3.6End of Topic Test - Distribution Health
5.4

Mental Health

5.4.1The Biomedical Approach5.4.2Social Patterns5.4.3Social Constructionist Approach
5.5

The Globalised Health Industry

5.5.1The Functionalist Approach5.5.2The Postmodernist Approach5.5.3The Globalised Health Industry5.5.4End of Topic Test - Mental Health & Globalisation
6

Option 1: Work, Poverty & Welfare

6.1

Poverty & Wealth

6.1.1Types of Poverty6.1.2Types of Poverty 26.1.3Distribution of Wealth UK6.1.4Sociological Theories6.1.5Sociological Theories 26.1.6Distribution of Poverty UK6.1.7End of Topic Test - Poverty & Wealth
6.2

Welfare

6.2.1The Welfare State6.2.2Theoretical Approaches to Welfare
6.3

Labour Process

6.3.1Nature of Work6.3.2Technology & Control6.3.3Work & Life6.3.4The Effects of Globalisation6.3.5Globalisation & Worklessness6.3.6End of Topic Test - Welfare & Labour
7

Option 2: Beliefs in Society

7.1

Ideology, Science & Religion

7.1.1Types of Religion7.1.2Ideology & Belief Systems7.1.3Social Stability & Religion7.1.4Social Change & Religion7.1.5End of Topic Test - Ideology, Science & Religion
7.2

Religious Movements

7.2.1Religious Organisations7.2.2New Religious Movements7.2.3New Age Movements7.2.4Practice Exam Question - Growth of NRMs
7.3

Society & Religion

7.3.1Social Groups & Religion7.3.2Gender & Religion7.3.3End of Topic Test- Religious Movements & Society
7.4

Contemporary Religion

7.4.1Secularisation UK7.4.2Against Secularisation7.4.3Secularisation US7.4.4Fundamentalism7.4.5Economic Development & Religion7.4.6End of Topic - Contemporary Religion
8

Option 2: Global Development

8.1

Development, Underdevelopment & Global Inequality

8.1.1Development8.1.2Underdevelopment & Global Inequality
8.2

Globalisation & Global Organisations

8.2.1Globalisation8.2.2Transnational Corporations & International Agency8.2.3Non-Governmental Organisations (NGOs)
8.3

Aid, Trade, Industrialisation, Urbanisation

8.3.1Development: Aid & Trade8.3.2Development: Industrialisation & Urbanisation8.3.3Development: Environment & War
9

Option 2: The Media

9.1

Contemporary Media

9.1.1New Media9.1.2Control of the Media9.1.3Sociological Approaches: New Media9.1.4Globalisation9.1.5News Selection9.1.6Moral Panics9.1.7End of Topic Test - Contemporary Media
9.2

Media Representations

9.2.1Age9.2.2Social Class & Ethnicity9.2.3Gender9.2.4Sexuality & Disability9.2.5Practice Exam Questions - Presentation of Women
9.3

Audiences

9.3.1Media Theories9.3.2Media Theories 29.3.3Media Representations & Audiences
10

Crime & Deviance

10.1

Crime & Society

10.1.1Functionalism10.1.2Subcultural Theory10.1.3Marxism10.1.4Realism10.1.5Other Approaches10.1.6End of Topic Test - Crime & Society10.1.7Practice Exam Questions - Social Construction
10.2

Social Distribution of Crime

10.2.1Ethnicity10.2.2Gender10.2.3Globalisation & Crime10.2.4Media & Crime10.2.5Types of Crimes10.2.6End of Topic Test - Social Distribution of Crime
10.3

Prevention & Punishment

10.3.1Surveillance10.3.2Prevention10.3.3Punishment10.3.4Victimology10.3.5End of Topic Test - Prevention & Punishment

Practice questions on Distribution of Wealth UK

Can you answer these? Test yourself with free interactive practice on Seneca — used by over 10 million students.

  1. 1
    Wealth differences UK according to the Office of National Statistics:True / false
  2. 2
    In 2013-14 in the UK:Fill in the list
  3. 3
    Within households at greater risk of poverty:True / false
  4. 4
    What was the UK average income in 2014? Multiple choice
  5. 5
    2014 UK Treasury figures:True / false
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Types of Poverty 2

Sociological Theories