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Often richer, not poorer

Newspaper article

Despite protests against pension cuts, public employees are often better off than private ones.

The coalition's plans to cut public sector pensions have already sparked strikes and protests across the country but at hear this is not just a row about pensions. The changes come alongside hundreds of thousands of job losses and a two-year pay freeze as the government tries to reduce both short and long-term spending. This shines a light on the widening gap between the public and private sectors; a gap which has increasingly made the two parts of the economy seem almost foreign to each other.

More on this topic

Book chapter
This chapter analyses trends in average incomes and income inequality between UK individuals. We also explore the determinants of trends in income growth and how they have evolved over time, on average and for different groups.
Briefing note
The tax and benefit system is a key tool for a government trying to reduce inequality. In this briefing note, we examine the effects that cash benefits and taxes had on UK inequality in 2016–17.
Press release
New IFS analysis, funded by the Economic and Social Research Council, finds that though benefits do much of the work in reducing income inequality, taxes also redistribute from rich to poor, and are responsible for at least a fifth of the total redistribution the tax and benefit system achieves.