The UK is spending a staggering £106.2 billion ($133.8 billion) a year to underwrite disparities in income, wealth and power, well above the OECD average, a recent study has concluded.
The study, titled "Cost of Inequality," reveals that in contrast to the most egalitarian nations, the economic, communal, and individual toll of inequality in the UK is £128.4 billion ($161.8 billion) per year.
Priya Sahni-Nicholas, co-executive director of Equality Trust, emphasized that "inequality has made the UK a less healthy, less happy and less secure society than its more egalitarian peers".
In addition, it is causing significant damage to the UK economy, resulting in shortened healthy working lives, substandard education systems, increased crime rates and reduced societal happiness, she noted.
The study highlighted that the richest 1% of Brits enjoy unprecedented protection, forming the most protected top percentile in Europe. This privileged group benefits from lower tax rates than their counterparts in major European countries. Researchers emphasize that inequality extends beyond the economic to permeate the cultural fabric and impede social mobility.
"Just being born outside the privileged 1% has a profound impact on one's life, affecting life expectancy, educational and professional opportunities, and mental well-being. The exorbitant costs of maintaining the super-rich lifestyle are disproportionately borne by the rest of society," Sahni-Nicholas said.
In contrast to the UK's current status as the second most unequal wealthy nation, behind only the United States, the experts noted a stark departure from the comparatively equal landscape of the 1970s.
The report attributes this shift to an over-reliance on financial systems that foster immense profits and wealth accumulation, resulting in the erosion of Britain's infrastructure, exacerbation of regional disparities, and increased vulnerability to economic shocks and recessions.