The gap between the rich and poor remains at record levels, according to the Organisation for Economic Cooperation and Development as the poorest 10% have been unable to recover from the blow dealt by the financial crisis.

The Paris-based thinktank said while the richest 10% had rapidly bounced back, long-term unemployment, low-quality jobs, and greater job insecurity had disproportionately hit low-income households.

Publishing the latest analysis of the OECD’s 35 member countries, the organisation said: “By 2013/14, incomes at the bottom of the distribution were still well below pre-crisis levels while top and middle incomes had recovered much of the ground lost during the crisis.”

In the UK, income inequality has fallen since 2007 but remains one of the highest in the OECD. It ranks seventh highest of 35, according to the Gini coefficient measure of income inequality.

Inequality in the UK has fallen since 2007 but is still among the highest in the OECD.

Weak wage growth in the UK has prevented incomes from fully bouncing back, the OECD said. “Despite strong job creation, including among poorer households, falling real wages limited the increases in labour incomes,” it added.

Between 2007 and 2010, average real incomes fell by 2.1% across the OECD, with the bottom 10% suffering the sharpest declines at 5.3%, and the top 10% seeing a 3.6% drop.

Since 2010, average incomes improved but more so among the richest 10%, who saw growth of 2.3% compared with 1.1% among the poorest 10%, increasing inequality.

The organisation said that more broadly across its member countries, the redistribution through taxes and benefits which cushioned the impact of the crisis in the early years had diminished in a majority of countries.