Category Archives: Income inequality

Covid pandemic made poorest countries even worse off, World Bank warns

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Poverty reduction drive all but halted across many nations as Bank calls for more money to tackle a ‘great reversal’

The devastating impact of the pandemic on the world’s poorest countries has brought poverty reduction to a halt and led to a widening income gap with nations in the rich west, the World Bank has warned.

In a report released to coincide with its half-yearly meeting, the Washington-based organisation said half of the world’s 75 poorest nations had seen income per head rise more slowly than in developed countries over the past five years.

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After the inferno: Sierra Leone’s poorest struggle to recover from slum fire – in pictures

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A blaze ripped through the overcrowded settlement of Susan’s Bay in Freetown in March, injuring hundreds. British photographer Henry Kamara, of Sierra Leone descent, documents the aftermath in this coastal community as people try to rebuild their lives

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British families took bigger hit to income during Covid pandemic than Europeans

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UK’s greater inequality levels made impact worse for the less well off, study suggests

British households were plunged into the Covid pandemic with lower savings, more debt and weaker welfare support than their French and German counterparts, according to analysis revealing how inequality increased the impact of the UK crisis.

High levels of income inequality also weakened the financial resilience of poorer households as the pandemic hit. The greater exposure of British households, revealed in an analysis by the Resolution Foundation thinktank to be published in full this week, comes despite similar levels of average income with our European neighbours.

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Highlighting heroic work of tube cleaners | Letter

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London Underground cleaning staff are on the frontline of the fight against the coronavirus, but are among the lowest paid workers, writes Mike Cash, RMT general secretary

Sean Smith has done a great service to your readers by bringing into the daylight the hidden labour of those who have worked every day to keep the London underground clean through the pandemic (‘Unsung heroes’: cleaners keeping London’s transport Covid-safe – photo essay, 10 December).

He is right to spot that they are among the lowest-paid workers. London underground cleaning is outsourced to a company called ABM. The cleaners do not receive the same pension provision as their Transport for London counterparts and they are not entitled to free travel on the network they clean. Their workloads have soared as the company has cut back their numbers every year since the contract began, leaving them desperately overstretched during the pandemic.

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Economic cost of Covid crisis prompts call for one-off UK wealth tax

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Tax experts and economists outline ‘fairest, most efficient’ way to repair public finances and quickly raise £260bn

The government has been urged to launch a one-off wealth tax on millionaire households to raise up to £260bn in response to the coronavirus pandemic, as the crisis damages Britain’s public finances and exacerbates inequality.

The Wealth Tax Commission – a group of leading tax experts and economists brought together by the London School of Economics and Warwick University to examine the case for a levy on assets – said targeting the richest in society would be the fairest and most efficient way to raise taxes in response to the pandemic.

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The US is on ‘inequality autopilot’ – how can Biden’s treasury pick help change course?

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Janet Yellen will likely be the US’s first female treasury secretary – but as Covid shutdowns loom, she will have to win Republican votes for any major initiatives

Teresa Marez has never heard of Janet Yellen, likely to be the next treasury secretary of the United States. But she and millions of other Americans have a lot riding on the decisions Yellen will make if and when she is confirmed next year.

The coronavirus has upended Marez’s life. Her savings are almost exhausted and she is worried about her unemployment benefits, which run out next week. “It’s so hard. It’s just such a mess,” said the mother of two in San Antonio, Texas. “We just need Congress to make a decision,” Marez said. “As long as they are in limbo, we are in limbo.”

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Why London’s not such a capital place to live | Letter

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Figures that appear to show Londoners are significantly better off than people in other parts of Britain don’t tell the whole story, says Maggie Kemmner

The article (Big regional gaps revealed in disposable incomes across UK, 23 May) is very misleading. It makes no allowances for the increased housing costs most Londoners face.

In February 2019, Londoners spent the biggest proportion of their income on rent as compared to other areas of the UK; more than one third of a household’s income. The average monthly rental was £1,599 as compared to a £940 UK average. Over a year, this amounts to £7,908 extra housing costs: which pretty much wipes out the “extra money” that Londoners have to spend post-tax as compared to the UK average. This data is from statistica.com.

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