UK workers confront a widening wealth chasm as asset gains concentrate at the top

07 October 2025

A view of the Bank of England and the financial district, in London, Britain, September 23, 2024. REUTERS/Mina Kim/File Photo

A new report from the Resolution Foundation casts a stark light on how Britain’s wealth landscape has shifted, revealing that the gulf between the richest households and average workers is growing ever steeper. Wealth inequality, the think tank argues, is no longer simply a static feature of the economy but a rising structural challenge one shaped by surging asset prices, pension valuations, and the uneven effects of property markets.

The core finding: the richest 10 percent of British households own roughly half of all household assets a ratio that has persisted since the 1980s yet the advantage they wield has widened substantially over time. By 2020-22, the average adult in that top decile held about £1.3 million more in net assets than someone in a median household, up from a £1 million gap in 2006-08. In real terms, that margin now equals over 52 years of average income, compared to under 40 years two decades ago.

That shift becomes even more unsettling when viewed across generations. The wealth difference between individuals in their early 30s and those in their early 60s has more than doubled to £310,000, according to the data. This suggests that not only is wealth concentrating at the top, but age and life stage are becoming more decisive in determining one’s economic standing.

One of the driving forces behind this trend is the disproportionate rise in asset values. Properties and private pension schemes have surged in valuation, putting homeowners especially in London and the South East at a distinct advantage. In these regions, where housing markets have heated rapidly, the gap in wealth has grown most sharply. Meanwhile, those without generational wealth or access to real estate are increasingly locked out of meaningful asset accumulation.

Molly Broome, a senior economist at the Resolution Foundation, warns that proposals to tax wealth — hotly debated ahead of the next UK budget may not land where many hope. “We need to be honest that higher wealth taxes are likely to fall on pensioners, southern homeowners, or their families rather than just being paid by the super-rich,” she cautioned. This underscores a political tension: how to curb inequality without penalizing those who have only modest property wealth or have relied on pensions for security.

London emerges in the report as a particular flashpoint. Its property market is the most unevenly distributed in the country, magnifying disparities between homeowners and renters, longtime residents and newcomers. The city’s real estate boom has boosted wealth for those already invested in property while further distancing those without.

The implications of this widening divide are manifold. For workers especially younger ones the path to upward mobility through wages and labor becomes less tenable when asset growth dominates wealth gains. It means that even a lifetime of work might not suffice to breach the upper echelons of wealth distribution. Further, political debates around taxation, pension reform, and housing policy gain new urgency in this context. Any shift in tax policy must grapple with the fact that many in the middle class now hold modest wealth in property or retirement funds, making them vulnerable to changes framed as targeting the wealthy.

This is not merely a matter of redistribution; it is a question of social cohesion, opportunity, and the role of capital in modern economies. The findings challenge the notion that work alone can build generational security. In Britain today, owning a home or having access to pension assets often makes more difference than years on the job.