The Ethnic Wealth Divide in the UK: Mapping Disparities Across Time, Age and Immigrant Generations

Eleni Karagiannaki

Published 16 December 2025

This study uses data from the UK Household Longitudinal Survey (Understanding Society), to provide evidence on how ethnic wealth gaps have changed since 2012/14, how they evolve with age and whether there is any evidence of progress across immigrant generations. The analysis proceeds in two stages. The first examines how ethnic wealth disparities changed between 2012/14 and 2021/23 and investigates the role of factors shaping the changes ethnic wealth disparities including the role of savings, remittances and income. The analysis of this stage considers both cross-sectional changes in the ethnic wealth gaps and ethnic gaps in short-term wealth accumulation using longitudinal changes in wealth across waves. The findings reveal stark and persistent inequalities in wealth across ethnic groups which widened over time and highlight how initial wealth position determines wealth growth. While demographic and socioeconomic drivers (such as income, employment patterns, remittance behaviour and savings) contribute to disparities in short-term wealth accumulation, they their role in explaining ethnic disparities in overall wealth levels is smaller. The second stage of the study involves an age profile analysis of ethnic wealth gaps and ethnic gaps in wealth determinants disaggregated by UK-born status to examine progress across immigrant generations. Age-profile analysis shows that ethnic wealth gaps widen sharply across the life‑course, driven by persistent disadvantages in income, differences savings behaviour, and delayed entry into homeownership. Generational progress in wealth among immigrant generations is evident for some ethnic groups, notably those from the Indian, Asian other and other White ethnic groups, but remains limited for others.