PA 15 Nov 96 5:34 GMT S0139 Copyright 1996 PA. Copying, storing, redistribution, retransmission, publication, transfer or commercial exploitation of this information is expressly forbidden. By Simeon Tegel, PA News WEALTH GAP 'FROZEN' The wealth gap between rich and poor has stopped growing, according to official statistics. In 1979 the poorest tenth of the population had 4.1% of the nation's disposable income after paying housing costs. That fell to just 2.5% in 1990-91. But the statistics for 1993-94, just released, show the figure has remained at 2.5%. At the same time the figure for the top 10%, which was 20% of the total disposable income in 1979, has remained constant at 26% since 1990-91. The corresponding figures for the second and third poorest and richest tenths of the population have followed a similar pattern, according to the Government Statistical Service. A GSS spokesman said: "It seems to show a marked break with the trend of the 1980s." The figures were given in Households Below Average Income, the GSS's annual report into poverty. Other significant findings include rising real income for the poorest groups and pensioners, and more mortgage-payers on low-incomes. Social Security Minister Andrew Mitchell welcomed the report, saying: "The continued growth in incomes is very good news. "Compared to 1979 the average income of all family types and economic status groups reported in HBAI has increased in real terms." In 1979 four out of five pensioner couples were on below average incomes. That number has now fallen to three out of five above the 1979 median. The increase is thought to be due to the rise in private and occupational pensions and the growing number of retired people who now own their homes. The study also found that 55% of the poorest tenth now had access to a car or van and 76% had central heating. That compared with just 39% for both categories in 1979. And the survey showed that people, including the poor, did not always live according to their means. Although more than a third of the 10% of the population with the lowest income were also among the tenth of the population which spent the least, 2% were among the highest spending tenth. Similarly, although nearly half the tenth of the population with the highest income were among the equivalent highest-spending 10% of the population, 1% of their number were among the lowest spending tenth. But Catherine O'Donnell, of the Low Pay Unit, warned: "There is no room for complacency in these figures. "The reality is that the number of people living in poverty in the UK has trebled since 1979. "The increase in families without work is especially alarming. Britain is deeply divided between work rich and work poor."
