• • Two-thirds of the working population are taxpayers; only two in five pensioners have enough income to pay tax.

• • In 2006–7 the average income of the richest fifth of single pensioners was 279 per cent that of the poorest fifth.

• • Forty-five per cent of people aged over 60 in deprived urban neighbourhoods were in poverty in one study, with over 67 per cent of Pakistani and 77 per cent of Somali older people in poverty.

Poverty next to riches

The UK is one of the world's most affluent nations. According to the International Monetary Fund (IMF), the UK had a gross domestic product (GDP) per head of about US$36,500 in 2008, placing it above most other European countries, including France, Germany, Spain and Italy. Notwithstanding the economic downturn that began in 2008, the evidence shows that, over time, average incomes in the UK have increased substantially and the nation's wealth has continued to grow.

Against this background, it might seem puzzling to focus in this chapter so single-mindedly on issues relating to poverty and material disadvantage, but I do so for a straightforward reason. While it is clearly true that many older people have also benefited over time from the UK's increasing income and wealth, there is still a substantial minority whose lives are seriously diminished by the experience of financial hardship.

Over time, the gap between those older people who are better off and those who live in poverty has continued to widen. The hardwon progress in reducing pensioner poverty has shown recent signs of stalling. Moreover, poverty rates among older people are considerably higher in the UK than in many comparable European nations. In a nation as wealthy as the UK, such issues should be a matter of concern for all.

Lopsided policy

In this respect, it is perplexing that poverty in later life has not been accorded the same status as child poverty in recent years. One of the major achievements of the Labour government, elected to office in 1997, has undoubtedly been its concerted attempt to reduce poverty among children. Even though this policy is likely to fall short of its goal of eradicating child poverty by 2020, there has been a significant reduction in the numbers and proportions of children living in lowincome households over the past decade.