1. The table shows the average incomes of the richest 20% of households and the poorest 20% of households in the UK (2015-2016), and the effects of government taxation and benefits on average income.

average income average income (E) of (E) of richest 20% poorest 20% before taxes and benefits 85 000 7 000 after direct taxes and cash benefits 68 000 13 000 after all taxes (direct and indirect) and all benefits 63 000 17 000