Richest 1% Have Almost a Quarter of UK Wealth, Study Claims

Date: 03 January 2021 - 21:55

News ID: ۸۶۱۹۶

LONDON (The Guardian) - Almost a quarter of all household wealth in the UK is held by the richest 1% of the population, according to alarming new research that reveals a historic underestimation of inequality in the country.
The study found that the top 1% had almost £800bn more wealth than suggested by official statistics, meaning that inequality has been far higher than previously thought. Researchers said the extra billions was a conservative estimate and could well be more.
The revelation comes amid calls for ministers to consider a new wealth tax or substantial reforms to existing levies on the rich, so that they play a bigger role in helping the country deal with the Covid fallout and the costs of an ageing population. Demands for a mansion tax are also being revived.
Around 5% of the total wealth held by the very richest households has been missed by official measures, researchers at the Resolution Foundation thinktank found. It discovered the missing wealth by comparing official statistics compiled by the Office for National Statistics with data from the Sunday Times Rich List.
It discovered that the official data struggled to capture the assets of very wealthy households. Taking the newly discovered billions into account has a significant impact on the share of total UK wealth held by the top 1%, increasing it by more than a quarter – from 18% to 23%.
Wealth inequality fell throughout much of the 20th century, with the proportion of wealth held by the richest 10% falling from more than 90% to around 50% by the 1980s. However, the Resolution Foundation said it had been flat or increased slightly in recent decades.
Wealth has been fuelled by rising asset prices since the financial crisis, such as soaring housing values, land or stocks – rather than through active saving. Between 76% and 93% of financial wealth gains since the crisis have come through the rising value of assets such as housing.