Britain’s New Ordinary Class Elite

The top 6% of the UK population by wealth and income make up a new elite class who also have the most cultural and social capital

In Britain today, there is an ordinary wealth elite who make up the top 6% of the population by wealth. Their mean household income is £89 000 and the average values of their homes £325 000. They have average savings of £142 000.

These figures mean they have wealth and income more than double that of the next class down on the Great British Class Survey, and they have got there by reaping the rewards of steady accumulation of their capital assets. The rise of rentier incomes from second homes forms a significant part of this.

Among the elite, meritocratic justification about wealth ran deep. They tended to stress that their success, income and wealth reflected their hard work, rather than it being down to the advantages they had because of the generations of accumulated cultural, social and economic capital they had benefitted from.

Others played down their wealth by positioning themselves in a relative sense, pointing out they were not as well off as their friends, and some deflected the issue by pointing out ‘accidental accumulation’: house prices having increased so much in London and the South East for example.

However, the top 6% do not see themselves as united, but are more aware of their differences There are fractures as well as solidarity at the top. In other words, the upper class layer is not a coherent and cohesive group but rather a scene of internal contestation between those with the most resources.

Cultural Capital and the Elite Class

The contemporary class elite defies traditional ‘upper class’ presumptions. It is a differentiated and heterogeneous formation which lacks a unitary defining feature.

Its cultural motifs vary and its members conform to a highbrow norm, although they are the most likely to express a preference for opera, classical music and so on.

While the traditional elite of the past marked their distinction by selectively consuming only the visible prestigious forms of culture, members of today’s elite are also in tune with contemporary and popular culture.

Occupational diversity also makes up part of this constellation. There is no unitary group to be found among the wealth class. Different professions such as business, law, academia, media and science compete with each other to assert their authority in the public domain.

These elite occupational blocs may have distinctive cultures of their own and so form niches, and this is especially true for some of the older professions such as architecture and law.

In spatial terms London is where the elite class predominately live. Having a relationship to the London scene and being prepared to work in London are essential. There are also regions within London, niches dependent on property prices.

You don’t necessarily have to have been born in London, but living close to it and being familiar with its geography are important.

There are also cultural elite bubbles in places such as Hampstead and Hackney and a legal elite around Waterloo station for example.

The elite class and meritocracy

The ordinary elite class strongly believe they got to where they are through meritocratic means, through their own hard work and effort, and they often contrast themselves to those who are not, like them, hardworking, but we shouldn’t take these beliefs at face value.

While it is true that they often got into their current high paying jobs by performing well in the education system and then succeeding in the cut throat professions they have also benefitted from their parents’ economic, cultural and social capital.

Many of them went to private schools and Shamus Khan has pointed out that private education is today about imparting the ‘meritocratic skills and practices’ that are required to get ahead in corporate and professional jobs. Ironically because these skills are taught most effectively in fee-paying private schools this means this is NOT meritocratic.

However there is still recruitment to this class from the outside: 25% come from comprehensives.

Elite universities play a role in separating out the very top professions: a boundary separates those who went to Oxbridge from the even those who attended Russel group universities.

The ordinary elite is not very glamorous nor glittering or self-recruited. It is not socially closed. However, people do have to perform to join it. They have to display knowingness, it is hard work being a member of the ordinary elite!

The Elite and the GBCS

The elite were more likely to do the Great British Class Survey. Despite making up only 6% of the objective class structure, 21% of the sample doing the GBCS were from the elite class.

Due to technocratic confidence they have the intellectual confidence and interest to take part, and taking part was a chance to obtain the private gratification that they had made it to the top.

They saw doing the survey as self-affirming, as a chance to have their elite status confirmed and flocked to it in disproportionate numbers, and the GBCS obliged them by awarding them with an ‘elite coat of arms’.

picture of the elite class summary from the great british class survey

Many of them then flocked to Twitter to communicate their ‘official’ elite status to the world. One example:

‘According to new #bbcclass survey I am elite. Nice to see a long-obvious reality reflected in hard data at last. Knee! Bow! And so on…’

What this (representative) tweet shows us is that the elite wanted to boast about their now socially recognised status, but dressed it up in a tongue in cheek way with humour to deflect away from this bragging.

It was also as if doing the survey gave this group a kind of scientifically based legitimacy to brag about their status: rather than them judging themselves as ‘elite’ the survey had done it for them, so all they are doing here (apparently) is stating ‘facts’.

This material was summarised from Savage (2015) Social Class in the 21st Century.

This material is relevant throughout A-level sociology but especially relevant to the Culture and Identity module.

To return to the homepage – revisesociology.com

Tax avoidance – supporting evidence for the Marxist Perspective on Crime

One of they key ideas of Marxist criminologists is that the Law is made by the property owning Capitalist class and  serves their interests.

(NB You might like to review the perspective by reading this long-form post on the Marxist theory of crime more generally before continuing…)

The issue of tax avoidance, which means legally bending the rules to avoid paying tax, is one of the best examples of how the legal system surrounding tax is structured in such a way that allows the wealthy to set up ‘shell companies’ in tax-havens to avoid paying tax on their income and investments….

Such methods can only ever benefit the rich as you need to be quite wealthy to be able to afford the legal and accountancy fees associated with doing this, so these methods are not really available to average, or even moderately high income individuals.

Lewis Hamilton Tax Avoidance.png

To my mind, the most notorious example of a tax avoider from 2017 was Lewis Hamilton, who used the ‘off shore’ method to get a £3 million VAT rebate on his £16 million private jet.

The Lewis Hamilton story was revealed as part of the ‘Paradise Papers’ leak – which consists of 13.4 million documents from offshore legal service providers such as Appleby covering seven decades, from 1950 to 2016. Tax-dodging is a very common practice by the wealthy!

Focussing on Corporate Tax Dodgers rather than individuals…

Corporate Tax Dodgers: the UK’s Worst Offenders – This article lists Google and Gary Barlow (or rather the Corporate entity ‘Take That’ as among the UK’s worst tax-dodgers, although it doesn’t distinguish between tax evasion (which is illegal) and tax avoidance (which isn’t)… I especially love the fact that it was put together (as basically an advert) by an accountancy firm in the North East of England – one of England’s poorest regions and thus the most likely to suffer from lower government revenue to tax dodging.

On a similar theme this Daily Mail article outlines with more clarity the Corporations avoiding Tax – including some very big names such as Café Nero and Vodafone, and LOTS more!

 

 

 

 

 

$450 million for a Painting – WTF..?

So, you’re a multi-billionaire, you have $450 million kicking about, but your’re bored of all the usual gaudy bling bullshit…

 

This poll was inspired by today’s news that Leonardo Da Vinci’s ‘Salvator Mundi’, painting sold for $400m at auction today, with a grand total of $450 million once Christie’s auction house had added on its $50 million commission.

expensive painting
Leonardo Da Vinci’s ‘Masterpiece’

Now we may never actually know who bought this painting, but assuming it’s an individual (although  it may have been bought by a company or conglomerate), this raises the question of how much wealth you must have to be able to spend this much money on a painting!

Surly we must be looking at someone worth over $10 billion, so probably someone from the top 100 or so wealthiest people, possibly one of these from Forbe’s rich list, given that it’s unlikely that anyone’s going to risk more than 5% of their TNW on one investment, unless they really LOVE renaissance art or of course.

Anyway, whoever the anonymous buyer is, all mega-purchases like this do for me is remind of the existence of the global super-rich – that handful of billionaires that make up the top 0.00001% of the world’s population – domains like Christie’s auction house are their’s, and purchases of items in the several millions of dollars a regular occurrence.

This event is just a painful reminder of how much of a toss the global elite don’t give about global poverty. Between them, those present at that auction house yesterday could have transformed the lives of so many. NB I know it’s not THAT simple – money for development often gets misspent, it has unintended consequences etc etc… so I am being a bit idealistic, all I’m trying to do here is get some perspective on the enormous sum spent on that painting.

Here’s one calculation that does just that…

  • According to calculations by Oxfam, £250 000 is the sum required to provide clean drinking water to 16 800 people in Ethiopia.
  • $450 000 000/ £275 000 = 1636.36 rec
  • 1636.36 * 16 800 = 27 490, 848 people.

I don’t know about you, but I’m really not comfortable with the co-existence of global problems such as lack of access to clean water and a global Eloi jet setting around the world buying high status items at luxury auction houses.

 

 

Social Class – An Introduction to the Concept

What is social class? Outlining the Registrar General’s Scale, and the New British Class Survey.

Social Class refers to divisions in society based on economic and social status. People in the same social class typically share a similar level of wealth, educational achievement, type of job and income.

Social Class is one of the most important concepts within AS and A Level Sociology because of the relationship between social class background and life chances (or lack of them) and the debate over the extent to which social class background determines an individual’s life chances.

The concept of social class is certainly relevant today – according to the latest 2022 data from YouGov 68% of young people think that their life chances are ‘broadly determined’ by their parents socioeconomic backgrounds…

Many people in the United Kingdom have an idea of what social class is, but Sociologists define the concept in more precise terms.

Below I look at ‘common conceptions’ of social class before moving on to look at two ways of measuring social class – The Registrar General’s Social Class Scale and The New British Class Survey

Common Conceptions of Social Class

The classic formulation of social class in Britain is to see Britain as being divided into three classes: working, middle and upper class. Social Class, is however, open to change, and most agree that the last two decades have seen the emergence of an underclass, with little prospect of full time employment. These four terms are in common usage and we have to start somewhere, so here are some starting definitions which you should aim to move beyond.

Social Class

Definition/ Defining Features

Working class

Those individuals engaged in manual work, often having low levels of educational achievement. The classic, traditional working class jobs include heavy labouring and factory based work.

Middle class

Those individuals engaged in non-manual work, often having higher levels of educational achievement. Classic middle class jobs include everything from doctors and lawyers to clerical workers.

Upper class

The elite class that controls the majority of wealth and power in British society.

According to the UK government’s 2021 Social Mobility Barometer 48% of respondents defined themselves as working class, 36% as middle class and 0% as upper class. 79% of people said they felt there was a large gap between social classes today.

This means that 84% of respondents were prepared to identify themselves with a particular social class background, which suggests that these broad ‘class divisions’ have meaning for people.

The disadvantages of common conceptions of social class is that they lack clarity – although most of us have heard of social class and have some idea of what it means to be a member of a social class, exactly what constitutes middle or working class, for example, is subjective and varies from person to person.

This is precisely why socologists have striven to develop more objective classifications of social class – and below I look at two of these – The registrar General’s Social Class Scale and the New British Class Survey

The Registrar General’s Social Class Scale (1911)

Sociologists use more nuanced categories of social class, than the common sense conceptions above. The way in which sociologists group people into social classes has changed considerably over time, mainly because of the changing occupational structure. To illustrate this just two examples are provided below.

For most of the 20th Century social class was measured using the Registrar General’s Scale. When this was originally conceived in 1911 it was based on the alleged standing in the community of the different occupational groups.

Occupations were divided into the following:

  • Manual occupations – those that involve a fair amount of physical effort. These are also known as blue collar occupations and are seen as working class.
  • Non-manual occupations – those that involve more mental effort, such as professions and office work. These are also known as white collar occupations and are seen as middle class.

Registrar General’s Scale: 1911-Present Day 

Social Class

Examples of occupation

I Professional and managerial

Accountant, doctor

II Intermediate

Teacher, farmer

III Non-manual – skilled occupations

Police officer, sales representative

III Manual – skilled occupations

Electrician, bus driver

IV Semi-skilled manual

Farm worker, postman/woman

V Unskilled manual

Labourer, cleaner

Strengths and Limitations of the Registrar General’s Social Class Scale 

The problems with the above scale is that the occupational structure in the UK has moved on – there are many more unskilled non manual jobs – in call-centres for example, and there is no room for the long-term or intermittently unemployed in the above scale either.

However, even today the majority of occupations fit pretty unambiguously into one of the categories, and six categories broadly organised along educational achievement and income is very easy to manage if we wish to make comparisons, and if we stick to these six simple categories, there does appear to be a historical relationship between these social class groupings and life chances – especially where life expectancy is concerned.

health and social class inequality

The New British Class Survey 

The New British Class Survey was an attempt to update the Registrar General’s Social Class Scale and make it more relevant to contemporary Britain.

Social Class UK

The survey was conducted by the BBC in 2011, in conjunction with The London School of Economics, recently conducted an online survey of 161 000 people. The survey measured three aspects of social class – economic capital, cultural capital and social capital.

Economic Capital – Measured by a combination of household income, household savings and the value of house owned.

Cultural Capital – The level of engagement in ‘highbrow’ and ’emerging’ culture. The amount of ‘Highbrow’ culture people consumed was measured by scoring how engaged they were with classical music, attending stately homes and so on. How much ’emerging’ cultural capital people owned was measured by scoring engagement with video games, a preference for hip-hop etc.

Social Capital – Measured using the average status or importance of people’s social contacts and the number of occupations people said they knew.

According to this survey, there are now 7 new classes in the United Kingdom…..

  1. Elite (6% of the population) – The most privileged class in Great Britain who have high levels of all three capitals. Their high amount of economic capital sets them apart from everyone else.
    Social Class Britain
  2. Established Middle Class (25% of the population) Members of this class have high levels of all three capitals although not as high as the Elite. They are a gregarious and culturally engaged class.
  3. Technical Middle Class (6%) – A new, small class with high economic capital but seem less culturally engaged. They have relatively few social contacts and so are less socially engaged.
  4. New Affluent Workers (14%) – This class has medium levels of economic capital and higher levels of cultural and social capital. They are a young and active group.
  5. Emergent Service Workers (15%) This new class has low economic capital but has high levels of ‘emerging’ cultural capital and high social capital. This group are young and often found in urban areas.
  6. Traditional Working Class (19%) – This class scores low on all forms of the three capitals although they are not the poorest group. The average age of this class is older than the others.
  7. Precariat (15%) – The most deprived class of all with low levels of economic, cultural and social capital. The everyday lives of members of this class are precarious.
    Social Class Sociology

Strengths and Limitations of the New British Class Survey 

This seems to be a clear improvement on previous class scales – it seems to describe social class divisions as they actually are in the UK (you might say it’s a more valid measurement of social class) – and the inclusion of  ‘lowest’ class – the precariat reflects the important fact that many people are in low-paid work are in poverty because of the precarious nature of their flexible and/ or part-time employment. It also includes more indicators (or aspects of class) and reflects the importance of property ownership which only typically comes with age.

However, because it includes more aspects of class and because it is more subjective, it is simply harder to ‘get your head around’ – the divisions aren’t as clear cut, and it’s more difficult to make comparisons – of which there are few available because this is such a new measurement. Still, these aren’t necessarily weaknesses if that’s the way social class really does manifest itself in reality in contemporary Britain.

Related Posts – Mostly on ‘why class matters’

Social Class, Income and Wealth Inequalities

The Reproduction of the Social Class Inequality in Education

Three ways in which family life varies by social class

Research Task – Use this link to do the survey and find out more about your class background (you could either enter your parents‘ details, if you know them, or think about where you think you will be in 5-10 years time and enter those details.

British Class Survey
Discussion Question: To what extent do you believe someone’s social class background affects their life chances in Modern Britain today?

Further Sources 

Please click here to return to the homepage – ReviseSociology.com