Overall private wealth in Scotland rises but inequality widens

The latest Wealth and Assets in Scotland report covering 2012/14 shows all components of wealth increased in the period, 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, while the distribution of household wealth in Scotland remained highly unequal.

While the report showed that wealthiest 1 per cent alone owned more wealth than the bottom 50 per cent of households, it also revealed that the wealthiest 10 per cent of households owned 43 per cent of all private wealth in Scotland and the least wealthy 50 per cent owned just 9 per cent.

The wealthiest 10 per cent of households owned 67 per cent of financial wealth; 54 per cent of private pension wealth; 43 per cent of property wealth; and 34 per cent of physical wealth.

In contrast, the least wealthy half of households owned less than 2 per cent of financial wealth; 2 per cent of private pension wealth; 5 per cent of property wealth; and 18 per cent of physical wealth as the period 2012/14 saw wealth inequality increase in Scotland.

The wealthiest 10 per cent owned 9.4 times more household wealth than the bottom 40 per cent of households, the data shows, 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 per cent of households.

Amongst the least wealthy households: more than four in five were in rented accommodation (compared to 2 per cent 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).