The poorest fifth of households in London own just 0.1 per cent of the capital’s wealth, including finances and property, a new study shows.
Despite record numbers of Londoners being in work, 2.3 million people are living in poverty, according to research by the Trust for London.
The charity said a record 58 per cent of those living in poverty in the capital are in working families, up from 44 per cent a decade ago.
After housing costs are taken into account the proportion of Londoners living in poverty has fallen by two per cent to 27 per cent over the past six years, the report said.
Wealth inequality is a “significant” issue in London, with the bottom 20 per cent of households owning 0.1 per cent of wealth, the bottom half owning five per cent, while the top 10 per cent owns more than half.
Mubin Haq, director of policy and grants at Trust for London, said: “Despite record levels of Londoners in work, poverty rates have only nudged down slightly over the last few years.
“Over two million Londoners are struggling to make ends meet. That’s more than the entire populations of Manchester, Liverpool, Bristol and Newcastle combined.
“The reality remains, that for many work does not pay enough, or offer the security that people need.
“We need more action to increase wages and improve good work standards if poverty is to further reduce.”
The report said poverty was measured using official statistics on household income, calculated after taxes and housing costs, with wealth referring to financial, property, physical and pensions.
A household whose income is below 60 per cent of the median income is counted as being in poverty, the charity added.
Source: Evening standard
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