The report says that health quality and life expectancy have improved dramatically for those living in well-off neighbourhoods.
However, life expectancy in the most deprived areas has increased by two and a half years for men and one and a half years for women over the last 10 years.
The report is part of a plan to reduce differences in mortality for infants, men and women by 10% before 2010.
Health minister Dawn Primarolo said: ‘The report proves what we already know – health inequalities are difficult to change. We’ve set ourselves an ambitious target and we’re the only country in the world to have a plan to reduce health inequalities.’