The gap between rich and poor

• Thatcher is often criticized for widening the gap between the richest and poorest sections of British society
• A whole host of social problems, from mental illness to obesity, can be directly linked to this gap in wealth and income
• Several of Thatcher's policies benefited the wealthy and discriminated against the poor
• Regressive taxes took a far higher percentage of income of the poor for the state
• Privatisation benefitted the more financially astute middle and upper classes more than the working classes
• Policies aimed at cutting inflation not only cut spending on the poor but fueled unemployment predominately among manufacturing workers
• Other effects of the Thatcher years that increased social divisions include the following:

  • uneven benefits from cuts in income tax
  • by reducing welfare payments
  • the proportion of pensioners living below the poverty line increased from 13% to 43%
  • cuts to housing benefit
• While the income of the richest 10% increased by 61% between 1979 and 1992, the poorest 10% saw a reduction of 18% in the same period
• The middle classes became increasingly divided over Thatcher: although they benefitted from rising incomes, many objected to her attack on the public sector
• 55% of middle-class people voted Conservative in 1987 - fewer than at any time since 1918