Here’s what you need to know
An analysis of new wealth data by Positive Money illustrates the disproportionate gains between the richest and poorest in the era of QE.
The latest ONS Wealth and Assets Survey, released on Thursday, suggests the wealthiest 10 per cent of households gained nearly 250 times the poorest 10 per centof households, in the years after the last financial crisis.
According to total wealth figures, in absolute terms the average wealth of the poorest 10 per cent of households rose by £2,912.52 between 2006-2008 and 2014-2016 (from -£557.72 to £2,354.80), whereas the average wealth of the top 10 per cent increased by £725,663.97 over the same period (from £1,432,771.99 to £2,158,435.96).
Fran Boait, executive director of Positive Money, said: “Behind the headline figures, Britain remains a deeply unequal country. The levels of wealth gained by the asset-rich since the crash have been completely out of proportion with the rest of the population.
“The main driver of this soaring inequality has been the Bank of England’s QE programme, which has seen the central bank create £445bn to purchase assets since 2009, inflating asset prices and thus the wealth of the asset-rich.
“Overturning this huge divide in wealth inequality will require new approaches in monetary policy as well as fiscal policy.”
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