Indian people in the UK recorded strong growth in wealth over the past decade, while several other Ethnic groups experienced declines, according to a report by the London School of Economics.
The report, The Ethnic Wealth Divide in the UK, authored by Eleni Karagiannaki, looked at household wealth trends across Ethnic groups between 2012-14 and 2021-23. It found that adults from the Indian ethnic group were among those who saw the largest increases in wealth during this period.
In contrast, wealth levels for the Pakistani group declined, while several other minority groups recorded little overall change. Median wealth rose substantially for Indian and White British groups over the decade.
It remained close to zero for Bangladeshi, Black African and Black Caribbean groups. The Pakistani group recorded a fall in median wealth. The research also highlighted clear differences linked to place of birth.
UK-born adults from the Indian group were found to be better placed than both non-UK-born Indians and White British individuals. The report stated that UK-born Indians “have a clear wealth advantage” over these groups.
Asset ownership trends played a central role in shaping these outcomes. In 2012-14, White British, Indian and Asian Other groups already had higher levels of ownership. By 2021-23, ownership had increased further for these groups.
During the same period, Bangladeshi, Black Caribbean and Pakistani groups experienced sharp declines in ownership, particularly in home ownership. These changes contributed to widening wealth gaps across ethnic categories.
Household wealth growth for Indian and other Asian groups ranked among the strongest of all groups studied. The report also identified growing gaps in home and investment ownership.
White British, White Other and Indian individuals were more likely to move up from the lowest wealth quartile during the period. In contrast, Pakistani and Black African individuals were more exposed to downward movement from the highest wealth quartile.
Differences in income growth over the life course were identified as a key driver of these trends. The report said: “Indian and white British groups typically experience steadier income growth across the life-course, enabling earlier asset accumulation.
“Pakistani and Bangladeshi groups exhibit the widest income gaps relative to the white British group than any ethnic minority group.”
