Office for National Statistics report reveals massive wealth gap that is not getting smaller
The ONS has released its latest figures from the Wealth and Assets Survey. Findings include:
In July 2014 to June 2016, the wealth held by the top 10% of households was around five times greater than the wealth of the bottom half of all households combined.
The wealthiest 10% own 44% of all wealth, those in the “Middle wealth” category (51% -90%) own 47% of all wealth, and the poorest half own just 9% of all wealth.
The bottom 10% of households have total wealth of £14,100 or less, the top 10% of households have total wealth of £1,208,300 or more, and the top 1% of households have total wealth of £3,227,500 or more.
There was a striking increase in the value of net property wealth for households in London compared with all other regions; median net property wealth in London was £351,000 in July 2014 to June 2016, a 33% increase from £263,000 in July 2012 to June 2014.
Total aggregate debt of all households in Great Britain was £1.23 trillion in July 2014 to June 2016 (a 7% increase from July 2012 to June 2014), of which £1.12 trillion was mortgage debt (6% higher) and £117.0 billion was financial debt (15% higher).
Young people (16-34) are clustered in the bottom wealth deciles, whereas the opposite is true of older households (65+).
Responding, Vince Cable, Leader of the Liberal Democrats, said:
“The evidence points to a dramatic wealth gap that is not getting any smaller. It is a major driver of the disadvantages faced by younger people, who are currently struggling to get a foot on the housing ladder.
“Conservative policies on inheritance tax and capital gains tax have only widened this inequality of wealth between generations.”
“Wealth should be a key to unlocking opportunities, not a barrier to them."