Unequal Gains: Wealth Dynamics Among Ethnic Groups in the UK

A study from the London School of Economics reveals that median wealth has increased for Indian-origin adults in the UK, while the wealth gap between ethnic groups has widened. The research highlights disparities in wealth growth, particularly among minority groups, emphasizing the need for improved financial policies.

The London School of Economics has shed light on the shifting wealth dynamics among ethnic groups in the UK. According to recent findings, median wealth has risen substantially for Indian-origin adults, whereas the wealth chasm between ethnic groups has expanded over the last decade.

The study, conducted by the Centre for Analysis of Social Exclusion, revealed that wealth gains since 2012-14 have been mostly enjoyed by white British and Indian ethnic groups. However, individuals from Pakistani, Bangladeshi, Black African, and Black Caribbean backgrounds faced stagnation or a decline in wealth, underscoring the entrenched disparities.

These differences are largely attributed to factors such as homeownership and asset ownership, alongside early-life income disparities. The report calls for policy interventions to enhance earnings, savings capacity, and asset market access to bridge the widening wealth gap.

(With inputs from agencies.)