The chart below shows the UK Gini coefficient of incomes, 2007 to 2013 - Edexcel - A-Level Economics A - Question 4 - 2017 - Paper 2

One likely reason for the change in UK income inequality since 2007 is the impact of the Global Financial Crisis, which began in 2008. This economic downturn led to a reduction in incomes for many individuals, particularly at the top of the income distribution. As a result, the Gini coefficient fell from 0.36 in 2007 to 0.34 in 2010, indicating a decrease in income inequality during this period. Additionally, changes in taxation and government policies, including increases in benefits for the lowest income groups, may have also contributed to this decline.