ABSTRACT
This chapter provides an overview of inequality and poverty in Scotland. It examines the situation in an historical context, and shows how Scotland compares with other countries. It examines inequality using a broader definition of income which takes account of the value of public services. Inequality is concerned with whether or not members of a society have similar levels of a given 'good' such as income. A simple measure of income inequality is the percentile ratio. Inequality in Scotland is slightly lower than the UK as a whole but that is due to the influence on UK figures of very high earners in London and the South East. Once that region is removed, Scotland is no different to the rest of the UK. Poverty rates for pensioners fell sharply under the impact of policies instituted by the New Labour UK governments, notably the minimum income guarantee.
