Wealth distribution in the UK is shockingly unequal, especially if we take into account the wealth of the top 1%.
For 2018-2022 the distribution of wealth according to ONS data (1) was as below:
Or in table form:
| Decile | Total Household Wealth |
| Top 1% | £4,403,500 |
| 10th (Highest) wealth decile | £1,941,300 |
| 9th wealth decile | £1,031,200 |
| 8th wealth decile | £685,500 |
| 7th wealth decile | £470,300 |
| 6th wealth decile | £339,600 |
| 5th wealth decile | £222,200 |
| 4th wealth decile | £129,200 |
| 3rd wealth decile | £47,300 |
| 2nd wealth decile | £23,000 |
| 1st (Lowest) wealth decile | £8,000 |
The extreme difference between the top 1% and the bottom deciles is stark. The top 1% have average wealth of over £4 Million, the bottom 10% only £8000 on average. (This is median household data).
This means the wealthiest 1% of households are 550 times richer than the bottom 10%.
The potential benefits of wealth redistribution
According to the Joseph Rowntree Foundation just over 20% of households were in poverty in 2020/21. 8% of these households are in very deep poverty (2)
To round things up let’s think about increasing the wealth of the bottom 10%.
Redistributing just 50% of wealth away from the top 1% could do amazing social good. If you did this then each of the 2.3 Million households in the bottom 10% would receive around £22 000 each.
£22 000 per household for the bottom 10% of households could contribute towards:
- better insulation or damp proofing. The poorest households tend to be those in the worst conditions.
- An education or training fund for one or more household members.
- Small business start up costs.
- Medical fees as appropriate
- debt clearance, to help prevent the debt-cycle.
There is no way the top 1% are 550 times more hardworking or talented than the bottom 10%. This will be wealth unfairly accumulated due to previous generations having had wealth.
Thus there is no moral argument against taking all of this unearned wealth away, let alone just half of it!
NB we could have exceptions for the working class roots self-made millionaires. There will be a few thousand of these no doubt!
Sources
(1) ONS: Total wealth: wealth in Great Britain Dataset | Released 7 January 2022
(2) Joseph Rowntree Foundation: Depth of Poverty over Time
