To have and have not: inequality gap widens

The great divide between rich and poor in Scotland has widened, according to the latest Scottish Government report. The richest 1% of the population now owns more than the poorest 50%, the Wealth and Assets in Scotland, 2006-2014 has highlighted.

Aggregate total wealth of private households increased to £856.6 billion in Scotland in 2012/14. All components of wealth increased, although pension wealth continues to be the largest component of private household wealth in Scotland, accounting for 48 per cent. The increase in total wealth in 2012/14 was largely due to increases in pension wealth.

The distribution of household wealth in Scotland remained highly unequal. The wealthiest 10 per cent of households owned 43% of all private wealth in Scotland. The least wealthy 50 per cent owned just 9%. The wealthiest 1 per cent alone owned more wealth than the bottom 50 per cent of households.

The wealthiest 10 per cent of households owned 67% of financial wealth; 54% of private pension wealth; 43% of property wealth; and 34% of physical wealth. In contrast, the least wealthy half of households owned less than 2% of financial wealth; 2% of private pension wealth; 5% of property wealth; and 18% of physical wealth.

In 2012/14 wealth inequality increased in Scotland. The wealthiest 10% owned 9.4 times more household wealth than the bottom 40% of households. This is an increase from 8.8 in 2010/12. Wealth inequality in Scotland was slightly lower than that for Great Britain. However, wealth inequality in both Scotland and Great Britain remains high, with little difference in the pattern of inequality.

The wealthiest 10 per cent had an average total wealth of £1.34 million, compared with £18,300 for the least wealthy 30% of households. Amongst the least wealthy households: more than four in five were in rented accommodation (compared to 2% of the wealthiest households); one in five had a savings account (compared with four in five of the wealthiest households); the median financial wealth was £500 (compared with £103,416 for the wealthiest households);  and more than one in ten had household arrears (compared with 1 per cent of the wealthiest households).

Wealth and Assets in Scotland 2006 – 2014