UK wealth gap 'widening since mid-2000s' says report


People holding sterling notes and coinsImage copyright
AFP

The UK’s wealth gap has been widening since the mid-2000s, a report says.

Think tank the Resolution Foundation estimates that 1% of the population owns 14% of the nation’s assets – worth about £11 trillion.

At the other end of the financial scale, 15% either own no assets at all, or are in debt.

The government has responded to the findings by insisting that income inequality is at its lowest level since the mid-1980s.

‘Wealth gap’

The foundation says the spreading of property wealth in the mid-1990s and mid-2000s fuelled a decade-long fall in wealth inequality – but that progress has since gone into reverse.

The proportion of property wealth owned by the bottom four-fifths of adults grew from 35% in 1995 to 40% in 2005.

However, the foundation warns “that with home ownership steadily falling since its mid-2000s peak, the proportion of property wealth owned by the bottom four-fifths of the population has started to fall again”.

“Given the hugely unequal distribution of wealth across Britain, it’s time we looked into how the nation’s wealth is divided up and what the consequences are for those who never build up assets of any significance,” said Conor D’Arcy, policy analyst at the Resolution Foundation.

“Falling levels of home ownership mean that, having once been a great force in driving down inequality, shifts in who owns what property are now fuelling the wealth gap between rich and poor, while also creating sharp wealth divides between young and old.”



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