New figures show extent of wealth inequality in the UK

The Office of National Statistics have released updated figures on the distribution of national wealth.

The richest fifth have nearly two thirds of the wealth. More startling is that the poorer half of us speak for just 9p in every £1 of privately held wealth. Private household net wealth in Great Britain totalled £9 trillion in 2006/08 and nearly 80% of this is accumulated in property and private pension entitlements. Median household net wealth was £204,500 in 2006/08. The least wealthy half of households accounted for only 9 per cent of wealth, while the wealthiest 20 per cent of households had 62 per cent of total wealth. The least wealthy 10 per cent of households had negative total net wealth Median net wealth – including pensions, houses and cars, but excluding mortgages and other debt – of a household in the South East is £287,900. In Scotland, it is £150,600.

The Lorenz curve for wealth is more skewed than it is for income and it is an interesting exercise for students to explain why and discuss the consequences for over-lapping generations.