Average British Family Much Richer Than Before the Corona Crisis
An average British family is a lot better off than before the corona crisis. On average, a household gained 7800 pounds, despite the worst economic recession in 300 years.
That is what the British think tank Resolution Foundation estimates. Most of the money went to the richest families, and as a result, inequality grew.
“Not all households have benefited from this unprecedented rise in wealth,” said Jack Leslie, an economist at the Resolution Foundation. “The poorest households had to use up their savings more often than they could put money aside.”
The poorest 30 percent of Britons are just £86 better off. However, the richest 10 percent benefited the most in absolute terms. Their wealth increased by more than 50,000 pounds on average.
Rising real estate values had the greatest impact on wealth and yielded enormous profits for owners. House prices actually fell during previous recessions. Poor households tended not to benefit from rising house prices because they are less likely to own a home.