<p>This article describes the changing patterns in income inequality and real living standards over the last 30 years. Whilst it is well documented that inequality has been rising since 1979, there is rather less information on how the pattern of inequality changed in the period up to 1979. This study is based on an analysis of detailed information on the incomes and characteristics of around 200,000 households between 1961 and 1991, and provides for the first time ever a consistent description of trends in household incomes over such a long period.</p>