(Wealth) gap year

The impact of the coronavirus crisis on UK household wealth

This report is the second in a series of annual reports analysing the state of wealth in Britain. In it we provide the first complete picture of the impact of the Covid-19 crisis across the entire wealth distribution of the UK, and what it means for living standards.

We find that the Covid-19 pandemic is the first UK recession in at least 70 years in which wealth has increased. However, these gains have been uneven with families at the bottom of the income distribution much more likely to have drawn down savings or increased debt than those at the top of the distribution. All this means that the pre-pandemic trends of growing aggregate wealth and increasing wealth gaps between households has continued during the crisis.