London is home to both the richest people and the poorest people in the UK, new research has shown.
What it means:Sky News has done some research into how rich people are around the country. It defines wealth as how much money you have in a property, as well as savings, pension pot and possessions.
According to the research, a fifth of households in London have wealth of more than £1m. But almost exactly the same proportion (around a fifth) live in households with a total wealth of less than £20,000.
The poorest households in Britain are single-parent families in Wales and London. Households in South East England having more than double the wealth of those in the North East.
The researchers used an economic model to measure inequality called the
. It's pretty simple: it runs between zero and one, where zero means everyone owns the same amount, and 1 means one person owns everything. The problem with the Gini coefficient is that while that number is useful, it doesn't give any information about what that society looks like, and the nature of inequality within it. Without more information you don't know how poor people are, for example – all you have is a relative measure.
We live in the same neighbourhood, area, country, and planet with about seven billion other people, and our economies inevitably overlap all the time. That means the economic choices we make might have consequences outside our control, and someone else’s choices might have a direct effect on your economy – even if you’ve never met them before…