Lay perceptions of social structure and economic distribution have a particular salience in the current era of widening inequalities which has characterised Britain since the 1980s. Research into subjective beliefs has generated puzzles: people underestimate the extent of inequalities, see themselves as being situated ‘near the middle’ irrespective of their objective position, and allegedly hold an a-social view of the underpinnings of socio-economic inequalities. This article presents a new qualitative analysis of lay perceptions of inequality. It does so with a particular focus on context, biographical experience and social change. The qualitative and temporal perspectives reveal that people are more sophisticated analysts of social process, and of their own situatedness within the wider social structure, than often thought. This has implications for sociological understanding but also holds relevance for renewing political options for intervention. Additionally, the evidence offers insights into lived experiences of inequality through a period of significant restructuring.