The weak economies of some black and Asian groups in the UK are hampering their ability to cope with the COVID-19 crisis, according to a think tank.
Black African people in the UK typically own only one-eighth of the wealth of white Britons, an economic think tank has said, calling for reforms to narrow the wealth gap between ethnic groups.
The Resolution Foundation said the differences were affecting the ability of households to cope with the COVID-19 crisis.
People of black African ethnicity had an average of 24,000 pounds ($ 32,175) of family wealth per adult, rising to 31,000 pounds ($ 41,569) for ethnic Bangladeshis and nearly 42,000 pounds ( $ 56,320) for people of mixed black and white Caribbean ethnicity.
People of white British ethnicity held 197,000 pounds ($ 264,166) of family wealth per adult, the Resolution Foundation said.
At least half of households of black African, Bangladeshi and black Caribbean descent had less than 1,000 pounds ($ 1,340) in savings before the coronavirus pandemic hit.
“Despite significant progress in narrowing the education and employment gaps between different ethnic groups, these wealth gaps are likely to persist,” said George Bangham, economist at the Resolution Foundation.
“Even people with high incomes will find it difficult to save their way to high wealth, while white Britons are much more likely to inherit large sums than those from other ethnic groups.”
The Resolution Foundation has proposed wealth tax reforms, first-time homebuying support for young people who cannot rely on family funds, and more generous tax breaks for tax pensions for those on low incomes.