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 Richest 10% spend seven times more than poorest

The gap between rich and poor was demonstrated yesterday by official figures showing that the 10% of households in the top income bracket spent nearly seven times as much as the 10% with the lowest incomes.

In an average week the richest 10th spent £849, including £187.50 on leisure items such as cinema, theatre, television, holidays, gambling and gardening. The poorest 10th spent £126.70, including £20.20 on leisure.

This latest slant on inequality in the UK came in the family expenditure survey for 2000-01 published yesterday by the office for national statistics.

It showed average household spending (excluding taxes, savings and purchase of capital goods) was £390 a week. The biggest outlay was on leisure, with households averaging just over £70 a week on spare time activities, compared with £64 on housing, £62 on food and non-alcoholic drink and £55 on motoring.

Spending on leisure goods and services increased by 10% last year, accounting for 18% of household spending. Higher mortgage costs caused spending on housing to overtake food and drink as the second biggest item in the family budget.

The richest 10th of the population spent 42% more than the second richest 10th. Average weekly outgoings for the richest were: £145.80 on leisure services and £41.70 on leisure goods, £141.10 on housing, £118.30 on motoring, £111.40 on food and non-alcoholic drinks, £70.60 on household goods, £54.80 on household services, £45.80 on clothing and footwear, £33.80 on alcohol, £32.70 on personal goods and services, £28.20 on fares, £16.60 on fuel and power, £6.50 on tobacco and £1.60 on sundries.

Weekly outgoings for the poorest 10th were: £25.80 on food and non-alcoholic drinks, £21 on housing, £14.10 on leisure services and £6.10 on leisure goods, £11.20 on household goods, £8.60 on fuel and power, £8.60 on motoring, £8.50 on household services, £6.70 on clothing and footwear, £5 on personal goods and services, £4.20 on alcohol, £3.90 on tobacco, £2.70 on fares and 20p on sundries.

The ONS said the spending gap was slightly higher than 12 months before when the richest 10th averaged £782 a week and the poorest £120. But proportionately the gap was greater 10 years ago when the richest spent £513 and the poorest £69. The figures are not adjusted for inflation.

The survey showed average household spending in rural areas was higher than in all other parts of the country except London. In spite of the low incomes of many rural workers, average weekly spending was £420 a week, compared with £460 in the London built-up areas and £320 in small towns.

Spending was highest in London, the south and eastern region, and lowest in north-east England. Londoners spent 19% of their income on housing, 3% above the national average, while in Northern Ireland housing accounted for 10%.

Those living in the north-east spent the most on alcohol, averaging £16.50 a week, compared with a national average of £14.80.

The survey was based on information from 6,500 people through the UK who kept a two-week diary of outgoings.

Who has what:

· Of the poorest households 75% have a washing machine but only 4% a dishwasher, against 68% of highest income households

· Average weekly spending on mobile phones rose by 500% from 1995 to 1999 to £2, and to £2.10 in 2000/01, with fixed lines at £5.80

· Spending on clothing and footwear averaged £22 a week in 2000/01

· Spending on milk fell by 25% to £2.10 between 1995 and 2000/01


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