William Eichler 03 September 2018

Poorest households not benefiting from ‘wealth boom’, think tank says

Many of Britain’s poorest households have not benefited from the country’s post-financial crisis ‘wealth boom’, think tank finds.

Between 2006/8 and 2014/16, overall household wealth rose from £10.1 trillion to £12.8 trillion (after adjusting for inflation), according to Resolution Foundation.

However, while there has not been an overall increase in wealth inequality, the think tank warns the wealth gap has widened within certain regions.

London has the largest gap, according to the think tank’s findings. High-wealth Londoners, defined as those who have more wealth than 75% of households, have 24 times more than low-wealth households.

In the East Midlands, high-wealth households are 12 times better off than low-wealth groups.

While the South West has the smallest gap – 6 times – in relative terms, in cash terms this represents a gap of over £500,000.

The analysis shows low-wealth households in the East Midlands are 42% less wealthy than in 2006-08 in real terms.

In the North East, high- and low-wealth households are worse off, though those in the former suffered less (a 3% fall since 2006-08 in real terms against a much more significant 17% for low-wealth households).

Low-wealth households have seen substantial wealth increases across the South of England and Scotland.

In Scotland, the South West, West Midlands, and the South East, both low- and high-wealth households are now better off, with the wealth gap shrinking between 2006-08 and 2014-16, as growth for low-wealth households outpaced that of high-wealth households.

‘When people think of wealth gaps and inequality in Britain, it’s often London that springs to mind. And though the capital is by far the most unequal region, there are big differences in wealth within every region and nation,’ said Conor D’Arcy, senior policy and research analyst at the Resolution Foundation.

‘These gaps matter, since wealth contributes to where families can live, how they deal with income shocks and the risks they can take. ‘While household wealth overall has grown strongly in recent years and benefitted wealthier households across Britain, it has not fed through to lower wealth households in every region.

‘In some parts of the country – including the East Midlands, East of England, Wales and Yorkshire – the gap between wealthy and poorer households has widened since the financial crisis.’

SIGN UP
For your free daily news bulletin
Highways jobs

Targeted Early Help Practitioner

Wakefield Council
Grade 7 - Grade 8, 18.5 hours, Temporary
We are looking for an enthusiastic individual to work part of a multidisciplinary team to support the delivery of the Targeted Early Help Wakefield, West Yorkshire
Recuriter: Wakefield Council

Apprentice - Business & Administration

Essex County Council
Up to £14567.00 per annum
Apprentice - Business & AdministrationFixed Term, Full Time£14,567 per annumLocation
Recuriter: Essex County Council

Youth Worker (North/West)

Oxfordshire County Council
£31537 - £34434
About Us We believe in relationships that make a difference and creating the space for young people to feel seen, heard, and supported. If you’re passionate about supporting young people, this is where you belong. The Targeted Youth Support Service (TY Oxfordshire
Recuriter: Oxfordshire County Council

Engagement and Customer Support Officer

Derbyshire County Council
Grade 9 £32,347 - £34,317 per annum
Are you passionate about delivering exceptional customer service and creating engaging communications? Derbyshire
Recuriter: Derbyshire County Council

Engagement and Customer Support Manager

Derbyshire County Council
Grade 11 £39,865 - £43,270 per annum
Are you passionate about delivering outstanding customer service and building strong stakeholder relationships? Derbyshire
Recuriter: Derbyshire County Council
Linkedin Banner