Wealth inequality takes toll on health as living standards stall, claims report

A REPORT has found that

45 per cent of Scotland’s wealth is held by 10% of households, with incomes experiencing “unprecedented stagnation” ince 2010.

Research by the Fraser of Allander Institute at the University of Strathclyde shows that living standards have stalled, affecting the health of the population as a result.

The Health Inequalities in Scotland report explores trends since 1999 in key factors that influence health.

It found that one-tenth of households in Scotland have no or negative wealth.

The report also argues wealth can influence health through the way it affects financial and housing security.

Inequalities in earnings, income, wealth and education remain relatively high in Scotland compared to the past and to other comparable European countries.

Living in damp or overcrowded accommodation can affect health directly, while a lack of financial security can affect mental wellbeing and influence people’s ability to engage in healthy behaviours, according to the report.

Typical weekly earnings in Scotland were found to be around £80 per week below what they would have been had long-running trends before 2010 continued.

David Eiser, deputy director at the Fraser of Allander Institute and author of the report, said: “Scotland’s economy, like the UK’S, has been characterised by high levels of inequality for many decades.

“Since 2010, the economy has also been characterised by stagnating earnings growth and flatlining living standards.

“The health of the population, and health inequalities within the population, are shaped by social and economic circumstances.

“The similarities between Scotland’s economic and health trends are striking.

“Stagnation of improvement in incomes and living standards has coincided with a slowing of improvement on some health outcomes, including life expectancy and healthy life expectancy, and an increasing prevalence of mental health issues.

“The links between the economy and health are complex and work both ways.

“We’ve seen this in the context of Covid, where socio-economic circumstances influenced vulnerability to the disease, and the current cost-of-living crisis, which has the potential to affect health in a number of ways.”

The report was funded by the Health Foundation, working with Scottish research partners and an expert advisory group.

David Finch, assistant director at the Health Foundation, said: “Addressing socioeconomic inequalities and improving living standards will be key to making meaningful progress towards improving the health of Scotland.”