Home > News > Rising asset wealth and falling real wages ‘drive inequality in Britain’

Rising asset wealth and falling real wages ‘drive inequality in Britain’

Working for a living has become harder to grow rich in modern Britain amid rising wealth inequality over the past decade. Research published today warns of a breakdown in social mobility as inheritances grow in importance.

The Institute for Fiscal Studies said wealth had grown rapidly compared with earnings from work since the 2008 financial crisis, driven by a surge in house prices and financial assets – such as stocks and shares – at a time of flatlining progress for average wages.

Robert Joyce, the deputy director of the IFS, said: “A generation of Britons has ridden a wave of growing asset prices, pushing up the value of their houses and investments. Meanwhile, more than a decade of stagnant earnings has held back younger generations for whom earning their own economic success has become increasingly difficult.

“The fact that we can no longer be sure that the young will grow up with living standards that match [those of] their predecessors is a remarkable social change.”

In a major study as part of the IFS Deaton review of inequalities, led by the Nobel Prize-winning economist Sir Angus Deaton, the IFS found wealth levels growing at much faster rates than income meant it was now harder for working families to enter the ranks of the rich in Britain through hard work alone.

It said the amount of time it would take to earn enough to move from the middle wealth bracket to the top had increased by almost six years compared with a decade ago.

In 2008, it took ten years’ worth of typical full-time gross earnings to move from the middle to the top wealth bracket. By 2018, this had increased to almost 16 years.

“While income remains important, it is wealth that is increasingly at the heart of the most pressing economic inequalities today,” the report said.

The findings come as the chancellor, Jeremy Hunt, comes under pressure to raise taxes on wealth at next week’s autumn statement as he attempts to find billions of pounds in savings after Liz Truss’s botched mini-budget.

HICH LTD has continually raised the quality standards in the UK property survey market. Our multi-award-winning property survey service has made us the leading reference in the property survey market.

We offer property survey services of the highest quality. Using state-of-the-art equipment, we provide top-notch property surveys at affordable prices. Our prices are based on the number of rooms rather than the value of the properties, so you will always get the best value for money with our services.

Please look at our Trustpilot page and see why customers have chosen us as their favourite property survey provider!

At HICH LTD, we work to serve our clients and make the world a better place for everyone. We actively collaborate with NGOs to promote environmental, social and charitable causes. If you want to know more about our efforts or how you can help, contact us at hichinfo@aol.co.uk.

HICH LTD extends a warm invitation to contractors and service providers throughout the UK to join our network; by joining the Contractors and Service Providers Network, you will enjoy benefits such as a significant increase in customer flow, advertising on our high-traffic website, and direct contact with thousands of customers in your zip area. Find more information here or by following the QR code in the following video.