White UK households ‘ nine times more likely to be in top wealth level’

HOUSEHOLDS WHERE the head is of white British ethnicity are around nine times as likely to be in the wealthiest top fifth in the UK as those where the head is from a black African background.

Families where the head of the household is white British are also 18 times as likely to be in the top fifth – defined as having total wealth of more than £ 865,400 – as those of Bangladeshi ethnicity, according to the analysis from the Office for National Statistics ( ONS).

Its report found differences between ethnic groups in terms of employment, home ownership rates and pension saving – all of which are vital ways for households to build up wealth. The research found that the median average total wealth for households across Britain between April 2016 and March 2018 was £ 286,600.

This average ranged from £ 34,000 among those with a household head from the black African group to £ 314,000 where the head is from the white British group.

The ONS said there were statistically significant differences in wealth by ethnicity of the household head, even after adjusting for factors such as age.

Households where the head is black African were found to be twice as likely as the white British group to have financial debts that exceed their financial assets.

Myron Jobson, from online investment service interactive investor, said: “The fact that there were statistically significant differences in wealth by ethnicity of the household head, even after adjustment for a range of household characteristics including age and household composition, shows the extent of the issue.”

The ONS also said there are high levels of employment among people aged 16 to 64 for white ( 77 per cent) and Indian ( 76 per cent) ethnic groups compared with Pakistani ( 57 per cent) and black ethnic groups ( 67 per cent).