Understanding why income and wealth gaps exist in the UK... Show more
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25 Dec 2025
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Jessica
@stewart0jess
Understanding why income and wealth gaps exist in the UK... Show more











You've probably heard mates complaining about rubbish wages or not getting enough hours at work - and they're not wrong to be frustrated. Around 1.6 million UK workers earn at or below the minimum wage, which is about 5% of everyone working.
Underemployment hits even more people, affecting 7% of the workforce who want more hours but can't get them. The current national living wage sits at £10.42 per hour for over-23s, but many experts reckon you need £10-12 hourly just to live decently.
This creates a vicious cycle where people can't save money or plan for the future. When you're constantly worried about paying rent or buying food, it's nearly impossible to focus on career development or further training.
Quick Fact: Being underemployed doesn't just mean less money - it often leads to lower job satisfaction and fewer chances for promotion.

Financial insecurity from low wages creates massive problems beyond just having less spending money. Workers stuck in these situations often feel demotivated and struggle with mental health, which then affects their job performance even more.
The government has tried tackling this through initiatives like increasing the living wage and creating job placement programmes. There's also been investment in transition programmes to help people move into better-matched roles that use their actual skills.
However, with the ongoing cost of living crisis, many experts are pessimistic about quick improvements. Rising prices for essentials like food and energy mean even wage increases struggle to keep up with what people actually need to live comfortably.
Reality Check: Even with government efforts, the cost of living is rising faster than wages for many workers.

Here's a shocking fact that'll make you think twice about "equal opportunities" - kids from wealthy families are already 13 months ahead in vocabulary by age 5. The attainment gap between rich and poor students is massive and starts before they even get to primary school.
In Scotland's most deprived areas, only 43.5% of young people achieve higher qualifications when leaving school. Compare that to 79.3% in the least deprived areas - that's a huge difference that shapes entire life paths.
The phrase "the more you learn, the more you earn" isn't just a catchy saying. Students who don't do well academically are far less likely to get into further education or land well-paying jobs later on.
Stat That Matters: There's a 36.2% gap in students achieving 5+ National 5s between the richest and poorest areas in Scotland.

Before kids even step foot in a classroom, poverty has already started affecting their development. Children from low-income families face food insecurity, unstable housing, and sometimes violence - all of which seriously damage their ability to learn and concentrate.
COVID-19 made everything worse, especially for single-parent and low-income households. The digital divide meant some kids had laptops and fast internet for online learning, whilst others had nothing. This pushed the education gap even wider.
The Scottish government created the Pupil Equity Fund and Scottish Attainment Challenge to help disadvantaged schools. But here's the frustrating bit - many schools have had to use this money just to cover budget cuts elsewhere rather than actually improving education.
Harsh Reality: More than 260,000 Scottish children officially live in poverty, trapping them in a cycle that's incredibly difficult to break.

Your housing situation doesn't just affect where you sleep - it can trap you in poverty or help you build wealth. Private renters in Scotland's poorest areas spend nearly 47% of their income just on rent, leaving very little for anything else.
Fuel poverty has become a massive crisis, with 34% of Scottish households spending at least 10% of their income just keeping warm. Damp, cold homes are expensive to heat, and recent energy price rises have made this much worse for millions of families.
Living in poor housing creates a domino effect. High rents plus unaffordable heating bills mean you can't save money or invest in your future, keeping you stuck in the same situation year after year.
Mental Health Impact: 1 in 5 UK adults say housing problems have negatively affected their mental health in the last 5 years.

Poor housing doesn't just cost money - it seriously damages people's mental health and job prospects. About 1 in 20 adults have visited their GP for mental health issues directly related to their housing situation.
When you're stressed about damp walls, overcrowding, or sky-high bills, it becomes much harder to perform well at work. This can limit opportunities for promotions and career progression, creating what experts call a cycle of economic immobility.
Insecure housing makes everything else in life unstable too. It's difficult to build relationships, pursue education, or even maintain steady employment when you're constantly worried about having a roof over your head.
The Bigger Picture: Poor housing creates a cycle where stress and financial pressure undermine your ability to improve your situation.

Even in 2024, sexism continues to create major income gaps between men and women. Nearly 50% of working-age women provide 45 hours of unpaid care weekly (looking after kids or elderly relatives), compared to just 17 hours for 25% of men.
This unpaid care burden forces many women to choose between careers and caring responsibilities. It's not really a choice when society expects women to be the primary carers, limiting their earning potential and creating long-term financial insecurity.
Women are also overrepresented in low-paid sectors like care, hospitality, and retail. About 14% of working women earn below the real living wage, compared to only 9% of men - that's over 2 million women struggling on poverty wages.
Pay Gap Reality: This isn't just about individual choices - it's about how society structures work and caring responsibilities differently for men and women.

Educational attainment varies dramatically between ethnic groups, and this directly impacts future job prospects. While most ethnic minority pupils outperform their white classmates, Gypsy, Roma and Traveller children face severe disadvantages with the highest absence rates of any ethnic group.
The numbers are stark - Gypsies and Travellers are 10 times less likely to attend university than their peers. This educational gap then translates into massive employment and wage differences that last throughout their working lives.
Even when people achieve the same qualifications, racism continues to affect earnings. Black graduates earn around £14.33 per hour compared to £18.63 for white graduates, and ethnic minority graduates are 5-15% less likely to find employment six months after graduating.
Qualification Doesn't Equal Equality: Having the same degree doesn't guarantee the same opportunities or pay for people from different ethnic backgrounds.


Our AI Companion is a student-focused AI tool that offers more than just answers. Built on millions of Knowunity resources, it provides relevant information, personalised study plans, quizzes, and content directly in the chat, adapting to your individual learning journey.
You can download the app from Google Play Store and Apple App Store.
That's right! Enjoy free access to study content, connect with fellow students, and get instant help – all at your fingertips.
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The app is very easy to use and well designed. I have found everything I was looking for so far and have been able to learn a lot from the presentations! I will definitely use the app for a class assignment! And of course it also helps a lot as an inspiration.
Stefan S
iOS user
This app is really great. There are so many study notes and help [...]. My problem subject is French, for example, and the app has so many options for help. Thanks to this app, I have improved my French. I would recommend it to anyone.
Samantha Klich
Android user
Wow, I am really amazed. I just tried the app because I've seen it advertised many times and was absolutely stunned. This app is THE HELP you want for school and above all, it offers so many things, such as workouts and fact sheets, which have been VERY helpful to me personally.
Anna
iOS user
Best app on earth! no words because it’s too good
Thomas R
iOS user
Just amazing. Let's me revise 10x better, this app is a quick 10/10. I highly recommend it to anyone. I can watch and search for notes. I can save them in the subject folder. I can revise it any time when I come back. If you haven't tried this app, you're really missing out.
Basil
Android user
This app has made me feel so much more confident in my exam prep, not only through boosting my own self confidence through the features that allow you to connect with others and feel less alone, but also through the way the app itself is centred around making you feel better. It is easy to navigate, fun to use, and helpful to anyone struggling in absolutely any way.
David K
iOS user
The app's just great! All I have to do is enter the topic in the search bar and I get the response real fast. I don't have to watch 10 YouTube videos to understand something, so I'm saving my time. Highly recommended!
Sudenaz Ocak
Android user
In school I was really bad at maths but thanks to the app, I am doing better now. I am so grateful that you made the app.
Greenlight Bonnie
Android user
very reliable app to help and grow your ideas of Maths, English and other related topics in your works. please use this app if your struggling in areas, this app is key for that. wish I'd of done a review before. and it's also free so don't worry about that.
Rohan U
Android user
I know a lot of apps use fake accounts to boost their reviews but this app deserves it all. Originally I was getting 4 in my English exams and this time I got a grade 7. I didn’t even know about this app three days until the exam and it has helped A LOT. Please actually trust me and use it as I’m sure you too will see developments.
Xander S
iOS user
THE QUIZES AND FLASHCARDS ARE SO USEFUL AND I LOVE THE SCHOOLGPT. IT ALSO IS LITREALLY LIKE CHATGPT BUT SMARTER!! HELPED ME WITH MY MASCARA PROBLEMS TOO!! AS WELL AS MY REAL SUBJECTS ! DUHHH 😍😁😲🤑💗✨🎀😮
Elisha
iOS user
This apps acc the goat. I find revision so boring but this app makes it so easy to organize it all and then you can ask the freeeee ai to test yourself so good and you can easily upload your own stuff. highly recommend as someone taking mocks now
Paul T
iOS user
The app is very easy to use and well designed. I have found everything I was looking for so far and have been able to learn a lot from the presentations! I will definitely use the app for a class assignment! And of course it also helps a lot as an inspiration.
Stefan S
iOS user
This app is really great. There are so many study notes and help [...]. My problem subject is French, for example, and the app has so many options for help. Thanks to this app, I have improved my French. I would recommend it to anyone.
Samantha Klich
Android user
Wow, I am really amazed. I just tried the app because I've seen it advertised many times and was absolutely stunned. This app is THE HELP you want for school and above all, it offers so many things, such as workouts and fact sheets, which have been VERY helpful to me personally.
Anna
iOS user
Best app on earth! no words because it’s too good
Thomas R
iOS user
Just amazing. Let's me revise 10x better, this app is a quick 10/10. I highly recommend it to anyone. I can watch and search for notes. I can save them in the subject folder. I can revise it any time when I come back. If you haven't tried this app, you're really missing out.
Basil
Android user
This app has made me feel so much more confident in my exam prep, not only through boosting my own self confidence through the features that allow you to connect with others and feel less alone, but also through the way the app itself is centred around making you feel better. It is easy to navigate, fun to use, and helpful to anyone struggling in absolutely any way.
David K
iOS user
The app's just great! All I have to do is enter the topic in the search bar and I get the response real fast. I don't have to watch 10 YouTube videos to understand something, so I'm saving my time. Highly recommended!
Sudenaz Ocak
Android user
In school I was really bad at maths but thanks to the app, I am doing better now. I am so grateful that you made the app.
Greenlight Bonnie
Android user
very reliable app to help and grow your ideas of Maths, English and other related topics in your works. please use this app if your struggling in areas, this app is key for that. wish I'd of done a review before. and it's also free so don't worry about that.
Rohan U
Android user
I know a lot of apps use fake accounts to boost their reviews but this app deserves it all. Originally I was getting 4 in my English exams and this time I got a grade 7. I didn’t even know about this app three days until the exam and it has helped A LOT. Please actually trust me and use it as I’m sure you too will see developments.
Xander S
iOS user
THE QUIZES AND FLASHCARDS ARE SO USEFUL AND I LOVE THE SCHOOLGPT. IT ALSO IS LITREALLY LIKE CHATGPT BUT SMARTER!! HELPED ME WITH MY MASCARA PROBLEMS TOO!! AS WELL AS MY REAL SUBJECTS ! DUHHH 😍😁😲🤑💗✨🎀😮
Elisha
iOS user
This apps acc the goat. I find revision so boring but this app makes it so easy to organize it all and then you can ask the freeeee ai to test yourself so good and you can easily upload your own stuff. highly recommend as someone taking mocks now
Paul T
iOS user
Jessica
@stewart0jess
Understanding why income and wealth gaps exist in the UK is crucial for making sense of modern British society. These inequalities affect millions of people's daily lives and future opportunities, creating barriers that can last for generations.

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You've probably heard mates complaining about rubbish wages or not getting enough hours at work - and they're not wrong to be frustrated. Around 1.6 million UK workers earn at or below the minimum wage, which is about 5% of everyone working.
Underemployment hits even more people, affecting 7% of the workforce who want more hours but can't get them. The current national living wage sits at £10.42 per hour for over-23s, but many experts reckon you need £10-12 hourly just to live decently.
This creates a vicious cycle where people can't save money or plan for the future. When you're constantly worried about paying rent or buying food, it's nearly impossible to focus on career development or further training.
Quick Fact: Being underemployed doesn't just mean less money - it often leads to lower job satisfaction and fewer chances for promotion.

Access to all documents
Improve your grades
Join milions of students
By signing up you accept Terms of Service and Privacy Policy
Financial insecurity from low wages creates massive problems beyond just having less spending money. Workers stuck in these situations often feel demotivated and struggle with mental health, which then affects their job performance even more.
The government has tried tackling this through initiatives like increasing the living wage and creating job placement programmes. There's also been investment in transition programmes to help people move into better-matched roles that use their actual skills.
However, with the ongoing cost of living crisis, many experts are pessimistic about quick improvements. Rising prices for essentials like food and energy mean even wage increases struggle to keep up with what people actually need to live comfortably.
Reality Check: Even with government efforts, the cost of living is rising faster than wages for many workers.

Access to all documents
Improve your grades
Join milions of students
By signing up you accept Terms of Service and Privacy Policy
Here's a shocking fact that'll make you think twice about "equal opportunities" - kids from wealthy families are already 13 months ahead in vocabulary by age 5. The attainment gap between rich and poor students is massive and starts before they even get to primary school.
In Scotland's most deprived areas, only 43.5% of young people achieve higher qualifications when leaving school. Compare that to 79.3% in the least deprived areas - that's a huge difference that shapes entire life paths.
The phrase "the more you learn, the more you earn" isn't just a catchy saying. Students who don't do well academically are far less likely to get into further education or land well-paying jobs later on.
Stat That Matters: There's a 36.2% gap in students achieving 5+ National 5s between the richest and poorest areas in Scotland.

Access to all documents
Improve your grades
Join milions of students
By signing up you accept Terms of Service and Privacy Policy
Before kids even step foot in a classroom, poverty has already started affecting their development. Children from low-income families face food insecurity, unstable housing, and sometimes violence - all of which seriously damage their ability to learn and concentrate.
COVID-19 made everything worse, especially for single-parent and low-income households. The digital divide meant some kids had laptops and fast internet for online learning, whilst others had nothing. This pushed the education gap even wider.
The Scottish government created the Pupil Equity Fund and Scottish Attainment Challenge to help disadvantaged schools. But here's the frustrating bit - many schools have had to use this money just to cover budget cuts elsewhere rather than actually improving education.
Harsh Reality: More than 260,000 Scottish children officially live in poverty, trapping them in a cycle that's incredibly difficult to break.

Access to all documents
Improve your grades
Join milions of students
By signing up you accept Terms of Service and Privacy Policy
Your housing situation doesn't just affect where you sleep - it can trap you in poverty or help you build wealth. Private renters in Scotland's poorest areas spend nearly 47% of their income just on rent, leaving very little for anything else.
Fuel poverty has become a massive crisis, with 34% of Scottish households spending at least 10% of their income just keeping warm. Damp, cold homes are expensive to heat, and recent energy price rises have made this much worse for millions of families.
Living in poor housing creates a domino effect. High rents plus unaffordable heating bills mean you can't save money or invest in your future, keeping you stuck in the same situation year after year.
Mental Health Impact: 1 in 5 UK adults say housing problems have negatively affected their mental health in the last 5 years.

Access to all documents
Improve your grades
Join milions of students
By signing up you accept Terms of Service and Privacy Policy
Poor housing doesn't just cost money - it seriously damages people's mental health and job prospects. About 1 in 20 adults have visited their GP for mental health issues directly related to their housing situation.
When you're stressed about damp walls, overcrowding, or sky-high bills, it becomes much harder to perform well at work. This can limit opportunities for promotions and career progression, creating what experts call a cycle of economic immobility.
Insecure housing makes everything else in life unstable too. It's difficult to build relationships, pursue education, or even maintain steady employment when you're constantly worried about having a roof over your head.
The Bigger Picture: Poor housing creates a cycle where stress and financial pressure undermine your ability to improve your situation.

Access to all documents
Improve your grades
Join milions of students
By signing up you accept Terms of Service and Privacy Policy
Even in 2024, sexism continues to create major income gaps between men and women. Nearly 50% of working-age women provide 45 hours of unpaid care weekly (looking after kids or elderly relatives), compared to just 17 hours for 25% of men.
This unpaid care burden forces many women to choose between careers and caring responsibilities. It's not really a choice when society expects women to be the primary carers, limiting their earning potential and creating long-term financial insecurity.
Women are also overrepresented in low-paid sectors like care, hospitality, and retail. About 14% of working women earn below the real living wage, compared to only 9% of men - that's over 2 million women struggling on poverty wages.
Pay Gap Reality: This isn't just about individual choices - it's about how society structures work and caring responsibilities differently for men and women.

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Improve your grades
Join milions of students
By signing up you accept Terms of Service and Privacy Policy
Educational attainment varies dramatically between ethnic groups, and this directly impacts future job prospects. While most ethnic minority pupils outperform their white classmates, Gypsy, Roma and Traveller children face severe disadvantages with the highest absence rates of any ethnic group.
The numbers are stark - Gypsies and Travellers are 10 times less likely to attend university than their peers. This educational gap then translates into massive employment and wage differences that last throughout their working lives.
Even when people achieve the same qualifications, racism continues to affect earnings. Black graduates earn around £14.33 per hour compared to £18.63 for white graduates, and ethnic minority graduates are 5-15% less likely to find employment six months after graduating.
Qualification Doesn't Equal Equality: Having the same degree doesn't guarantee the same opportunities or pay for people from different ethnic backgrounds.

Access to all documents
Improve your grades
Join milions of students
By signing up you accept Terms of Service and Privacy Policy

Access to all documents
Improve your grades
Join milions of students
By signing up you accept Terms of Service and Privacy Policy
Our AI Companion is a student-focused AI tool that offers more than just answers. Built on millions of Knowunity resources, it provides relevant information, personalised study plans, quizzes, and content directly in the chat, adapting to your individual learning journey.
You can download the app from Google Play Store and Apple App Store.
That's right! Enjoy free access to study content, connect with fellow students, and get instant help – all at your fingertips.
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The app is very easy to use and well designed. I have found everything I was looking for so far and have been able to learn a lot from the presentations! I will definitely use the app for a class assignment! And of course it also helps a lot as an inspiration.
Stefan S
iOS user
This app is really great. There are so many study notes and help [...]. My problem subject is French, for example, and the app has so many options for help. Thanks to this app, I have improved my French. I would recommend it to anyone.
Samantha Klich
Android user
Wow, I am really amazed. I just tried the app because I've seen it advertised many times and was absolutely stunned. This app is THE HELP you want for school and above all, it offers so many things, such as workouts and fact sheets, which have been VERY helpful to me personally.
Anna
iOS user
Best app on earth! no words because it’s too good
Thomas R
iOS user
Just amazing. Let's me revise 10x better, this app is a quick 10/10. I highly recommend it to anyone. I can watch and search for notes. I can save them in the subject folder. I can revise it any time when I come back. If you haven't tried this app, you're really missing out.
Basil
Android user
This app has made me feel so much more confident in my exam prep, not only through boosting my own self confidence through the features that allow you to connect with others and feel less alone, but also through the way the app itself is centred around making you feel better. It is easy to navigate, fun to use, and helpful to anyone struggling in absolutely any way.
David K
iOS user
The app's just great! All I have to do is enter the topic in the search bar and I get the response real fast. I don't have to watch 10 YouTube videos to understand something, so I'm saving my time. Highly recommended!
Sudenaz Ocak
Android user
In school I was really bad at maths but thanks to the app, I am doing better now. I am so grateful that you made the app.
Greenlight Bonnie
Android user
very reliable app to help and grow your ideas of Maths, English and other related topics in your works. please use this app if your struggling in areas, this app is key for that. wish I'd of done a review before. and it's also free so don't worry about that.
Rohan U
Android user
I know a lot of apps use fake accounts to boost their reviews but this app deserves it all. Originally I was getting 4 in my English exams and this time I got a grade 7. I didn’t even know about this app three days until the exam and it has helped A LOT. Please actually trust me and use it as I’m sure you too will see developments.
Xander S
iOS user
THE QUIZES AND FLASHCARDS ARE SO USEFUL AND I LOVE THE SCHOOLGPT. IT ALSO IS LITREALLY LIKE CHATGPT BUT SMARTER!! HELPED ME WITH MY MASCARA PROBLEMS TOO!! AS WELL AS MY REAL SUBJECTS ! DUHHH 😍😁😲🤑💗✨🎀😮
Elisha
iOS user
This apps acc the goat. I find revision so boring but this app makes it so easy to organize it all and then you can ask the freeeee ai to test yourself so good and you can easily upload your own stuff. highly recommend as someone taking mocks now
Paul T
iOS user
The app is very easy to use and well designed. I have found everything I was looking for so far and have been able to learn a lot from the presentations! I will definitely use the app for a class assignment! And of course it also helps a lot as an inspiration.
Stefan S
iOS user
This app is really great. There are so many study notes and help [...]. My problem subject is French, for example, and the app has so many options for help. Thanks to this app, I have improved my French. I would recommend it to anyone.
Samantha Klich
Android user
Wow, I am really amazed. I just tried the app because I've seen it advertised many times and was absolutely stunned. This app is THE HELP you want for school and above all, it offers so many things, such as workouts and fact sheets, which have been VERY helpful to me personally.
Anna
iOS user
Best app on earth! no words because it’s too good
Thomas R
iOS user
Just amazing. Let's me revise 10x better, this app is a quick 10/10. I highly recommend it to anyone. I can watch and search for notes. I can save them in the subject folder. I can revise it any time when I come back. If you haven't tried this app, you're really missing out.
Basil
Android user
This app has made me feel so much more confident in my exam prep, not only through boosting my own self confidence through the features that allow you to connect with others and feel less alone, but also through the way the app itself is centred around making you feel better. It is easy to navigate, fun to use, and helpful to anyone struggling in absolutely any way.
David K
iOS user
The app's just great! All I have to do is enter the topic in the search bar and I get the response real fast. I don't have to watch 10 YouTube videos to understand something, so I'm saving my time. Highly recommended!
Sudenaz Ocak
Android user
In school I was really bad at maths but thanks to the app, I am doing better now. I am so grateful that you made the app.
Greenlight Bonnie
Android user
very reliable app to help and grow your ideas of Maths, English and other related topics in your works. please use this app if your struggling in areas, this app is key for that. wish I'd of done a review before. and it's also free so don't worry about that.
Rohan U
Android user
I know a lot of apps use fake accounts to boost their reviews but this app deserves it all. Originally I was getting 4 in my English exams and this time I got a grade 7. I didn’t even know about this app three days until the exam and it has helped A LOT. Please actually trust me and use it as I’m sure you too will see developments.
Xander S
iOS user
THE QUIZES AND FLASHCARDS ARE SO USEFUL AND I LOVE THE SCHOOLGPT. IT ALSO IS LITREALLY LIKE CHATGPT BUT SMARTER!! HELPED ME WITH MY MASCARA PROBLEMS TOO!! AS WELL AS MY REAL SUBJECTS ! DUHHH 😍😁😲🤑💗✨🎀😮
Elisha
iOS user
This apps acc the goat. I find revision so boring but this app makes it so easy to organize it all and then you can ask the freeeee ai to test yourself so good and you can easily upload your own stuff. highly recommend as someone taking mocks now
Paul T
iOS user