income may have been more equal but overall we were poorer, and as we've become richer the lower end have been richer too. after rising in the 80s the general measures of the gap have gradudually declined, so we're slightly more equal since then. see FullFact. it would seem the inequality issue is not nearly as large a problem as some would have it.
Third sentence on that link states, "But the gap between rich and poor is much larger". Indeed it is, and it has been growing larger since the 60s and 70s, when we achieved the lowest gap we've ever had. As for the lower end becoming richer, there weren't many homeless people living on the streets back then, not nearly as many as now. Try convincing them they're better of now than they would have been 40 or 50 years ago and they'll rightly tell you it's bollox.