Rolling coverage of the latest economic and financial news
- Latest: Wealth inequality in UK has risen
- Introduction: Sterling is rallying today
- Polls suggest Conservative win next week
- Fears of a disorderly Brexit are fading
- Coming up: Opec meeting
Torsten Bell of the Resolution Foundation has tweeted about the rise in UK wealth, and wealth inequality:
Incomes aren’t going up much – but wealth is. New data has it rising by 13% over the two years to 2016-18. pic.twitter.com/x8U2Klqlia
House and pensions are driving the wealth increase BUT it’s financial wealth (ie shares/savings) that has actually seen the fastest growth. That matters because financial wealth is the most unequal form of wealth pic.twitter.com/EhMuWxA2b4
Wealth inequality is up.
Under the bonnet the trend of housing wealth becoming more unequal and pension wealth becoming more equal continues. You can thank lower home ownership for the former and pension auto-enrolment for the latter. pic.twitter.com/G9Kw8VylMf
This long term trend of wealth rising faster than incomes deserves much more focus – forget which party is promising you a tax cut/extra teachers today, this trend is reshaping Britain https://t.co/TEGmoLukSA
The wealth surge means it now totals over seven times our national income – that’s why it’s playing a bigger role in determining who the country does, and doesn’t, work for pic.twitter.com/rWGvNVzyA9
There is also a remarkable divergence in wealth growth across the UK in the last decade.
London has seen a huge jump in wealth, but the North East and the East Midlands have both suffered falling wealth.
For London, median total wealth has increased in each of the survey periods since July 2006 to June 2008. Between July 2006 to June 2008 and April 2016 to March 2018, median total wealth in London has increased by 78% to £356,400. Changes in net property and pension wealth are the major factors driving changes to total wealth.
For London, median net property wealth has increased by 51% since July 2006 to June 2008, to £410,000 in April 2016 to March 2018. Pension wealth has increased by 47% to £102,200.