* Dr Karagiannaki emphasised the need for targeted policy interventions to boost earnings, expand saving capacity, and improve access to asset markets
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Such measures, she said, are essential to narrowing wealth gaps and strengthening the financial resilience of the most disadvantaged groups
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The research was funded by the British Academy under its Innovation Fellowship Scheme
The median wealth of Indian-origin adults in the United Kingdom has risen significantly over the past decade, even as wealth disparities between ethnic groups have widened sharply, according to new research by the London School of Economics (LSE). The findings highlight both notable progress for some communities and persistent structural disadvantages for others.
The study, conducted by the LSE’s Centre for Analysis of Social Exclusion, examined changes in wealth accumulation between 2012–14 and 2021–23. It found that overall household wealth in the UK has grown during this period, but the benefits have been unevenly distributed. Wealth gains were largely concentrated among white British and Indian ethnic groups, while several other communities saw little improvement or, in some cases, a decline.
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According to the research, median wealth rose substantially for adults from white British and Indian backgrounds
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In contrast, median wealth remained close to zero for Black African, Black Caribbean, and Bangladeshi groups. Adults from the Pakistani ethnic group experienced a notable decline in median wealth over the same period
Dr Eleni Karagiannaki, Assistant Professorial Research Fellow at LSE and author of the study, said the findings point to cumulative disadvantages faced by many ethnic minority groups. While wealth has increased overall, she noted that the distribution of gains has intensified inequalities both between and within ethnic communities.
The analysis also reveals significant generational differences. UK-born individuals of Indian origin were found to outperform not only first-generation Indian migrants but also their white British counterparts in terms of wealth accumulation. By comparison, UK-born individuals from Pakistani, Bangladeshi, and Black Caribbean backgrounds showed limited progress, indicating that being born in the UK does not automatically translate into improved financial outcomes for all groups.
Across all ethnicities, including white British households, wealth gains were disproportionately higher among those already at the top of the wealth distribution. This trend has reduced upward mobility for certain groups, particularly Black African and Black Caribbean communities, while increasing the risk of downward mobility among others, such as Pakistani and Black African groups.
The study identifies homeownership and asset ownership as the primary drivers of widening wealth gaps, rather than differences in savings behaviour alone. Early-life income disparities, rising financial pressures during middle age, limited savings capacity, and delayed access to property ownership all contribute to long-term differences in wealth accumulation.
