Household wealth increases

While the recession has had negative financial repercussions for consumers and businesses alike, it appears that the economic downturn has not stopped personal wealth from growing.

Figures from the Office for National Statistics (ONS) reveal that personal wealth climbed by an impressive 12.9% between 2006 and 2010, to reach £10.3trillion.

The key driver behind this rise was an increase in pension wealth, according to the ONS report, with 64% of people paying into a private pension between 2008 and 2010.

Further statistics from the report highlighted that levels of household wealth varied between the different regions in the UK, with some areas surpassing the UK average of £418,000.

On average the south east emerged as the region with the highest levels of household wealth, with a wealth level of £562,000 per household in 2008-10.

At the other end of the spectrum, average levels of wealth in the North East fell below the national average, at £322,000 per household.

According to Sam Bowman of the Adam Smith Institute, a UK policy institute supporting free market economy, this discrepancy needs to be addressed.

“[Inequality] is a result of regional differences in the cost of living… and if we want to cut it we should be fighting corporate welfare and cutting taxes for the poor.”

The report also highlighted the fact that 43.7% of total household wealth lay in the hands of the top 10% of households in the UK between 2008 and 2010. This was down from a figure of 43.9% between 2006 and 2008.

“The wealth of the very rich is growing at an ever-increasing rate, even as the economy sinks into a double-dip recession,” said Brendan Barber, general secretary of the TUC.

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Posted by: WarrenWilson Categories: Finance Tags: , , 2 Comments

2 Responses to Household wealth increases

  1. avatar Maggie says:

    How are these figures calculated? Who are these average households with ‘wealth’ of £322,000? Mine and my husband’s gross income barely reaches £12,000 per year, insufficient to sustain the current house rent we’re presently paying . We own a static caravan, which entails ground fees every year of over £4,000 a year and we have at present just over £100,000 in the bank after selling our house and paying most of our debts – no doubt soon to be incurred again! We don’t live in the North-East. Are we so different from average?

  2. Yes. I agree with you. And the income gap between the poor and the the wealth is becoming wider and wider.