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Footnotes - 1. Income inequality
1 'Equivalisation' adjusts income to take into account of variations in the size and composition of the household. This adjustment reflects the fact that a family of several people requires a higher income than a single person in order for both households to enjoy a comparable standard of living. The key assumption is that all individuals in the household benefit equally from the combined (equivalised) income of the household. The OECD equivalisation scale has been used throughout.
2 Source: Selection of OECD Social Indicators: "How Does Your Country Compare?" 23 February 2007. http://www.oecd.org/topicstatsportal/0,2647,en_2825_497118_1_1_1_1_1,00.html The year 2000 was the most recent year of available data for the majority of the 27 countries included in calculating the average.
3 See 'Poverty and Inequality in the UK: 2007'. The Institute of Fiscal Studies for the results of simulation models that show inequality would have risen had these benefits reforms not been implemented. http://www.hmrc.gov.uk/stats/personal-tax-credits/takeup-rates2004-05.pdf
4 Source: 'Child Tax Credit and Working Tax Credit Take-up rates 2004-05', HM Revenues and Customs Analysis Team. http://www.hmrc.gov.uk/stats/personal-tax-credits/takeup-rates2004-05.pdf
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