E-Paper
Indian-origin people now UK’s richest ethnic group, LSE report flags rising inequality
LSE study finds White British, White-Other, and Indian individuals are more likely to move up from bottom; Black individuals have significantly lower chances
Indian-origin households are now the wealthiest ethnic group in the United Kingdom, according to a new report by the London School of Economics and Political Science (LSE). The study shows that median wealth for Indian households rose sharply to GBP 206,000 in 2021–23, a rise that outpaced all other ethnic groups, ANI reported.
The report notes that the strongest wealth gains in the UK were concentrated among the Indian and Asian Other groups.
Median wealth for Indian households increased by GBP 93,000, rising from GBP 113,000 to GBP 206,000 over the period. The Asian Other group saw an even steeper proportional rise, with median wealth climbing from GBP 33,000 to GBP 125,000.
This growth has been driven largely by homeownership and strategic investments.
Median wealth gap between groups have widened
By comparison, the White British group recorded a more modest increase of GBP 52,000, with median wealth moving from GBP 125,000 to GBP 177,000.
Much of this growth across groups occurred in the latter half of the decade, particularly between 2016–18 and 2021–23.
Researchers point out that median wealth gaps between ethnic groups have widened significantly since 2012–14.
While wealth gains were concentrated among adults from the White British and Indian groups, median wealth remained close to zero for Black African, Black Caribbean, and Bangladeshi groups. At the same time, adults in the Pakistani group experienced a notable decline in median wealth during this period.
According to the LSE, these disparities are largely the result of passive gains rather than active income.
As the report states, “Wealth growth of the highest wealth growth group exceeds the lowest by a factor of five, while median accumulated active savings are less than double.”
This indicates that “wealth growth was driven largely by asset appreciation” rather than savings from earnings alone. Those who already owned assets at the start of the period benefited from rising prices, while others did not.
Wealth mobility remains uneven
Differences in asset ownership play a key role in explaining the widening divide.
In 2012–14, White British and Indian adults already had higher rates of home and investment ownership.
By 2021/23, these gaps had expanded further, as these groups increased ownership while Bangladeshi, Black Caribbean, and Pakistani groups experienced “sharp declines, particularly in homeownership".
The report adds that “ethnic groups with stronger ownership positions at the start, and those able to expand ownership, were positioned to benefit disproportionately".
Wealth mobility also remains uneven. The study finds that “White British, White Other, and Indian individuals are more likely to move up from the bottom of the distribution.”
In contrast, Black Caribbean and Black African individuals face significantly lower chances of upward mobility.
Overall, the findings show that ethnic wealth inequalities in the UK have not only persisted but widened substantially over the past nine years.
