LONDON, UK — A historic shift in the United Kingdom’s economic landscape has been confirmed. Indian-origin households have officially emerged as the wealthiest ethnic group in the country, surpassing even the White British population in median wealth.
According to the latest study by the London School of Economics and Political Science (LSE), titled “The Ethnic Wealth Divide in the UK,” the median wealth for Indian households saw a meteoric rise, reaching £206,000 (approx. ₹2.15 crore) during the 2021–23 period.
1. The Wealth Surge: By the Numbers
The LSE report, authored by researcher Eleni Karagiannaki, highlights a widening gap in how different communities accumulate assets. Between 2012–14 and 2021–23, the financial trajectory of various groups diverged sharply:
- Indian Households: Median wealth jumped by £93,000, rising from £113,000 to £206,000.
- White British: Recorded a more moderate increase of £52,000, bringing their median wealth to £177,000.
- Asian Other: This group saw the steepest proportional climb, with wealth soaring from £33,000 to £125,000.
“Wealth growth of the highest growth group exceeds the lowest by a factor of five, while median accumulated active savings are less than double,” the report states, pointing to a heavy reliance on existing assets.
2. Driven by Assets, Not Just Income
The study clarifies that this “wealth boom” isn’t merely the result of high salaries. Instead, it is fueled by passive gains—specifically asset appreciation.
- Homeownership: Indian and White British groups entered the last decade with higher rates of property ownership. As UK house prices surged, these groups saw their net worth skyrocket without active effort.
- Strategic Investments: The report notes that Indian households were better positioned to expand their investment portfolios, benefiting from a “compounding effect” that groups without initial assets could not access.
- The Generational Edge: Interestingly, UK-born Indians were found to have a “clear wealth advantage” over both non-UK-born Indians and White British individuals, often starting their asset accumulation earlier in life.
3. The Widening Divide
While the success of the Indian community is a headline-maker, the report sounds an alarm on growing inequality.
- Stagnant Groups: Median wealth remained stuck near zero for Black African, Black Caribbean, and Bangladeshi groups.
- The Pakistani Decline: In a stark contrast to the Indian success story, the Pakistani ethnic group recorded a notable decline in median wealth over the same period.
- Ownership Gaps: While Indian and White British families expanded their property holdings, Bangladeshi and Pakistani groups saw “sharp declines” in homeownership.
4. Social Mobility: Who Can Move Up?
The LSE findings suggest that the UK is becoming a “wealth-based” society where your starting position determines your finish line.
- Upwardly Mobile: Individuals from White British, White Other, and Indian backgrounds are the most likely to move out of the bottom 25% of the wealth distribution.
- Downward Risk: Conversely, Black African and Pakistani individuals face significantly higher risks of falling down the wealth ladder, even if they start with a middle-class status.