Wealth & assets Inequality control Why wealth inequality has not increased while asset prices have soared and what that means for the future 28 November 2024 by Simon Pittaway The turbulent 2020s have had profound implications for household wealth in Britain: lockdowns pushed saving to unprecedented highs, asset prices surged and then tanked, and high inflation eroded the real value of wealth. This recent turbulence came on the back of decades of rising wealth. But, unlike elsewhere, relative wealth inequality in Britain did not soar during the era of rapidly rising wealth. This report discusses what lies behind this puzzling stability, which is key to understanding the reality of wealth inequality in Britain today and how it might evolve in future. READ MORE
Wealth & assets Wealth check What the new Government needs to know about household wealth as it navigates the challenges ahead 28 July 2024 by Simon Pittaway British household wealth has been on a rollercoaster ride in recent years. In Q1 2024, it was estimated to be worth more than six times GDP (630 per cent), more than 50 per cent higher than the last time Labour came into power (410 per cent in 1997). The key driver of this huge rise … Continued READ MORE
Pensions & savings· Wealth & assets Ineffective Savings Accounts 6 April 2024 by Molly Broome Today marks the beginning of a new ISA (Individual Savings Account) year with savers able to squirrel away up to £20,000 over the next year, with the returns being completely tax free. This is the Government’s flagship policy to promote saving – with around 12 million adults benefiting in 2021-22. But while the policy is … Continued READ MORE
Household debt· Wealth & assets In too deep? The impact of the cost of living crisis on household debt 29 February 2024 by Felicia Odamtten and Simon Pittaway Hard economic times and rising interest rates have brought a renewed focus on household debt in recent years, with concerns that more and more families could find themselves overwhelmed by the burden of debt. So this briefing note takes a closer look at the use of consumer debt (such as credit cards, personal loans and … Continued READ MORE
Pensions & savings· Wealth & assets Precautionary tales Tackling the problem of low saving among UK households 12 February 2024 by Molly Broome and Ian Mulheirn and Simon Pittaway Families in Britain are confronted with what can be termed a ‘triple savings challenge’. This encompasses a lack of accessible ‘rainy day’ savings to cushion small cashflow shocks, inadequate precautionary saving to see people through large and unexpected income shocks, and insufficient saving to provide an adequate income in retirement. These three savings challenges are … Continued READ MORE
Incomes· Labour market· Wealth & assets· Housing· Intergenerational Centre An intergenerational audit for the UK 2023 13 November 2023 by Molly Broome and Adam Corlett and Sophie Hale and Charlie McCurdy and Cara Pacitti Five years ago, our Intergenerational Commission set out the numerous threats to the UK’s promise of intergenerational progress. More recently, the spotlight has once again fallen on this issue, but this time in the US, where the latest data has started to suggest that living standards for the millennials are catching up with, and on … Continued READ MORE
Wealth & assets Peaked Interest? What higher interest rates mean for the size and distribution of Britain's household wealth 17 July 2023 by Molly Broome and Ian Mulheirn and Simon Pittaway Over the past four decades, the total value of wealth owned by UK households has been on a seemingly-relentless upward path: rising from around three-times GDP in the mid 1980s to almost eight-times. The key driver of this rise in wealth has been falling interest rates and the associated increase in asset prices. But the … Continued READ MORE
Pensions & savings· Wealth & assets ISA ISA Baby Assessing the Government’s policies to encourage household saving 16 January 2023 by Molly Broome and Adam Corlett and Jack Leslie The cost of living crisis highlights the long-standing issue of there being too many UK families with too little in savings. This is not a reflection of policy neglect: there have been many schemes over recent decades to encourage families to save more, covering both measures which cut taxes on savings returns and those which … Continued READ MORE
Household debt· Inequality & poverty· Wealth & assets Arrears fears The distribution of UK household wealth and the impact on families 20 July 2022 by Molly Broome and Jack Leslie The defining economic challenge for UK families at the moment is the cost of living crisis, rising inflation threatens living standards in the UK as real incomes fall. Owning wealth helps protect against the adverse effects, particularly for those who can rely on savings. Therefore, the current crisis has thrown wealth inequality into the spotlight. … Continued READ MORE
Wealth & assets· Intergenerational Centre Intergenerational rapport fair? Intergenerational wealth transfers and the effect on UK families 3 February 2022 by Jack Leslie and Krishan Shah Intergenerational wealth transfers – both gifts and inheritances – have increasingly become a major feature of UK economic life. These wealth transfers have major impacts on how people live their lives and the opportunities available to them. READ MORE
Pensions & savings· Wealth & assets Wealth on the eve of a crisis Exploring the UK’s pre-pandemic wealth distribution 7 January 2022 by Krishan Shah Today’s release of data from the Wealth and Assets Survey (WAS) gives us a key insight into the financial position of families on the eve of the pandemic. It shows a picture of steady increases in aggregate wealth with households’ net worth standing at £15.2 trillion before the onset of Covid-19. Much is written about … Continued READ MORE
Wealth & assets Home county Options for taxing main residence capital gains 9 December 2021 by Adam Corlett and Jack Leslie Over the past 30 years, the total value of household wealth in the UK has risen from three times national income to well over seven times. Inflation-beating house price growth and high ownership rates have combined to add around £3 trillion of housing wealth from main residences to that total – accounting for around a … Continued READ MORE
Wealth & assets (Wealth) gap year The impact of the coronavirus crisis on UK household wealth 12 July 2021 by Jack Leslie and Krishan Shah This report is the second in a series of annual reports analysing the state of wealth in Britain. In it we provide the first complete picture of the impact of the Covid-19 crisis across the entire wealth distribution of the UK, and what it means for living standards. We find that the Covid-19 pandemic is … Continued READ MORE
Wealth & assets· Housing· Intergenerational Centre Stakes and ladders The costs and benefits of buying a first home over the generations 26 June 2021 by Lindsay Judge and Jack Leslie Today’s young people often point bitterly to the lower house prices their parents and grandparents paid, while those from older generations look jealously at the low interest rates that first-time buyers now enjoy. So, who has really had the better deal? In this briefing note we assess the costs and benefits of buying one’s first home over the generations. READ MORE
Wealth & assets The UK’s wealth distribution and characteristics of high-wealth households 3 January 2021 by Arun Advani and George Bangham and Jack Leslie Household wealth is profoundly important for living standards but is held very unequally. Official estimates of wealth in the UK underestimate its size – by £800 billion – and also the level of inequality. READ MORE
Pensions & savings· Wealth & assets The Missing Billions 3 January 2021 by Jack Leslie In this spotlight we discuss new research on the size and distribution of UK household wealth. Such wealth matters for living standards, economic opportunity and the ability of families to weather the coronavirus crisis. But it also matters because there is increasing interest in reforming wealth taxes in the UK, not least in the context … Continued READ MORE
Wealth & assets A gap that won’t close The distribution of wealth between ethnic groups in Great Britain 22 December 2020 by George Bangham The coronavirus pandemic has shone a harsh light on wealth inequality in Britain, with wealth playing an important role shaping families’ experience of the crisis. This briefing examines the gaps in the wealth held by different ethnic groups, and how and why they have evolved over time, finding that very significant ethnicity wealth gaps remain. … Continued READ MORE
Covid-19· Household debt· Pensions & savings· Wealth & assets Rainy days An audit of household wealth and the initial effects of the coronavirus crisis on saving and spending in Great Britain 22 June 2020 by George Bangham and Jack Leslie Families in Great Britain are faced with the most severe economic contraction in more than 100 years. Much of the immediate focus among policy makers has been on the size and distribution of falls in families’ incomes but household wealth, both savings and debt, will play a hugely important role in shaping how far families’ … Continued READ MORE
Incomes· Inequality & poverty· Wealth & assets· Tax Who gains? The importance of accounting for capital gains 21 May 2020 by Adam Corlett and Arun Advani and Andy Summers This report looks at what we know about taxable capital gains; how our understanding of top income shares changes if we include capital gains in our analysis; and whether official statistical definitions of income should be changed or supplemented. READ MORE
Household debt· Wealth & assets An outstanding balance? Inequalities in the use – and burden – of consumer credit in the UK 15 January 2020 by Jubair Ahmed and Kathleen Henehan As the 2010s drew to a close, both policymakers and the press raised concerns about rising levels of UK household debt, with some warning it could soon bring about the next recession. Although household debt levels remain high in absolute terms, when compared against total household income they are substantially below levels reached during the … Continued READ MORE
Incomes· Pensions & savings· Inequality & poverty· Wealth & assets· Political parties and elections Who owns all the pie? The size and distribution of Britain’s £14.6 trillion of wealth 5 December 2019 by George Bangham and Jack Leslie While incomes have stagnated over the past decade, our national wealth has continued to boom. Data released today put UK households collective wealth at £14.6 trillion. But that total is far from equally distributed: the richest 10 per cent of households own almost half of the nation’s wealth having benefitted most from the recent wealth … Continued READ MORE
Wealth & assets· Tax· Political parties and elections The huge Brexit Party tax cut for rich remain areas 16 September 2019 by Adam Corlett and Torsten Bell In this paper we examine the policy of abolishing inheritance tax, the new top priority announced by the Brexit Party. We find that the proposal would amount to an expensive giveaway to a tiny number of very wealthy households, largely living in the richest parts of the country and concentrated in remain voting constituencies. READ MORE
Inequality & poverty· Wealth & assets· Scotland Taking stock Report for the Scottish Poverty and Inequality Commission 30 July 2019 by George Bangham and Lindsay Judge There has been a growing appreciation in recent years that living standards are determined not just by income (the flow of money into a household) but also by wealth (the stock of assets a household owns). Wealth can take various forms: it can be held in financial instruments (for example, a savings account or as … Continued READ MORE
Wealth & assets· Housing· Intergenerational Centre Game of Homes: The rise of multiple property ownership in Great Britain 15 June 2019 by George Bangham Additional property wealth is a big deal in Britain today. One-in-nine adults own some, and its combined value is almost £1 trillion. By value, it makes up one-sixth of all property wealth. READ MORE
Social mobility· Wealth & assets· Housing· Intergenerational Centre House of the rising son (or daughter): the impact of parental wealth on their children’s homeownership 4 December 2018 by Stephen Clarke and John Wood The rise of the so-called Bank of Mum and Dad (BOMAD) is much-discussed but until now there has been little analysis of the strength of the relationship between parental support and people’s chances of becoming homeowners. This paper fills this gap: we analyse the association between the property wealth held by people’s parents and their own, stripping out the impact that other factors (earnings, education, etc) have on homeownership. READ MORE
