Toronto is now the income inequality capital of Canada.

A published report says a new United Way study shows the gap between rich and poor households in the city is widening at double the national pace.

The study, to be released today, says income inequality in Toronto ballooned by more than 30 percent between 1980 and 2005; the most drastic increase of any major Canadian city.  On average, the gap across the country grew by 14 percent.

The report’s authors say Toronto’s growing divide could dampen social mobility, weaken community bonds and undermine economic stability.  But the study also finds Torontonians still maintain high levels of trust in each other and suggests policy makers must tackle inequality now before the city’s social fabric unravels.