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Tuesday 17th July 2007
The gap between the rich and poor in Britain has reached a 40-year high, according to a new report.
An analysis of wealth and poverty trends across the country between 1968 and 2005 concludes that people living in affluent areas have become "disproportionately" wealthier than individuals living elsewhere.
There is also evidence of "increasing polarisation" between the rich and poor, warns the report published by the Joseph Rowntree Foundation (JRF).
Researchers conclude that while social equality increased during the 1970s, economic inequality rose in the 1980s and 1990s.
Although fewer households are now living in extreme poverty, the number of households living below the so-called breadline is said to have risen over the past 15 years.
The number of people living below the standard poverty line in 2001 reached 27 per cent, reveals the report.
Based on an analysis of census and survey data, the study also concludes that there has been a "clustering" of poverty in urban areas.
It suggests that while over half of households in some cities are now considered to be living below the breadline, wealthy households are settling on the outskirts of major cities such as London.
Households considered to have "average" wealth have been effectively "disappearing" from the capital and the south east region, claims the report. It argues that those who have not moved away from such areas have subsequently become less well off.
As such rich and poor households are becoming "geographically segregated" from the rest of society, says the study.
Meanwhile a second report published by the JRF finds that although the public believe that the wealth gap in Britain is too large, there is little consensus over how the problem should be tackled.
"There is widespread acceptance that some occupations should be paid more than others, but the gap between high and low paid occupations is far greater than people think it should be," explained one of the study's authors, Michael Orton.
Responding to the research, the Conservative party said that society was "flatlining" when it came to providing opportunities for the least well off in Britain.
"Not only is this a loss of opportunity for young people and a tragedy for families and individuals trapped at the bottom of the pile, it is also a massive loss of talent and creativity for our nation," said shadow home secretary David Davis.
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