Wealth inequality is the uneven distribution of assets and resources among individuals or households in a society. It is now becoming a prevalent issue in society leading to increased poverty, greater social tensions and exacerbating class divide. In the UK, the richest 10% of households hold 43% of the nation’s wealth (ONS). So how did we get here?
The geographical divide between the North and South of England is a prime example of structural wealth inequality. Historically, the North thrived through manufacturing during the industrial revolution. The setting up of large-scale factories provided thousands of jobs, leading to rapid economic growth and urbanisation. However, these jobs only attracted working class populations willing to accept lower wages, in low skilled employment. These industries prospered in Northern cities due to their proximity to ports, meaning that goods could be easily imported and exported.
Contrastingly, the South has become the centre of finance, services, and politics. These jobs require a greater skillset and stronger academic backgrounds, leading to higher wages being paid, contributing to greater inequality.
Deindustrialisation began in the 1970’s, forcing Northern factories to close, causing significant job losses. The UK shifted towards a service-based economy, especially in the South East, leading to greater economic activity in the area. Therefore, there was a decline in demand for goods such as textiles, coal and steel, which could be imported cheaper from overseas. This made it difficult for British industries to compete, driving them out of the market.
Data from the Institute for Fiscal Studies shows that gross disposable household income per capita in the South East is 25% higher than in the North East. In response, the government has implemented the ‘Levelling Up’ plan aiming to provide training programs, apprenticeships, increase productivity and improve transport services. However, critics suggest that this is insufficient and politically motivated. “The slow disbursement of relatively small pots of money has meant that Levelling Up has been a policy failure.”
To create an effective solution, a policy should be developed around local authorities willing to take greater control of their area. A key barrier is their financial instability. Notable examples include Birmingham and Nottingham City council, which were reported as ‘bankrupt’ in 2023. Therefore, to combat inequality, long term investment in infrastructure, transport, public services and affordable housing is needed. It provides greater stability to the region, facilitating greater access to jobs, better career prospects and lower levels of poverty. Furthermore, this is beneficial as companies will be encouraged to set up branches, creating a growing economy, gradually eliminating inequality.
So what’s education got to do with it? Well, it plays a pivotal role in reproducing inequalities. Approximately 7% of pupils in the UK attend private schools, meaning these pupils will then go on to dominate the top universities, and work in the top paying professions. A strong educational foundation enables long term wealth accumulation. Alternatively, pupils from working class backgrounds are more likely to attend poorer performing state schools, struggle to excel in the education system and have a lower earning trajectory in their career.
The 1988 Education Reform Act implemented marketisation policies to encourage schools to run more like businesses, driving competition. The positives included the national curriculum, ensuring that knowledge was no longer a contributing factor to inequality, as everyone across the country learnt the same material. However, the delivery of this knowledge can have a huge impact. Recently, there has been a national struggle to find well qualified maths teachers, meaning that students quickly fall behind in a subject that is crucial for a plethora of careers. Therefore, if students aren’t able to gain access to the curriculum as the school is facing structural issues, this can cause significant disadvantage in the long run.
Furthermore, sociologist Gerwitz argues that privileged skilled choosers are middle class parents who use their economic and cultural capital to better navigate the system, and give their children an advantage, meaning that they know how to access the better performing schools. In addition, critics argue that exam league tables reproduce class inequalities as better performing schools attract more pupils. These schools then become oversubscribed and have to resort to a form of selection by cream skimming and silt shifting. This further marginalises disadvantaged pupils by the school system itself.
An aim of marketisation was to provide ‘parentocracy’, whereby parents had free choice over which school to send their child to. This quickly became an illusion as the system became a quasi market and parental choice was false. Parents may be limited by external factors such as transport costs, hence unable to afford to send their child to the best schools, if they live in an area of disadvantage. This is effectively promoting wealth inequality as a child’s future becomes increasingly dependent on their parent’s means, exacerbating the issue.
Provisions to reduce this long term wealth inequality rely on funding. For example, the existing pupil premium scheme could be altered slightly to ensure eligible pupils are being paid directly and controlled in a way to ensure it is being spent on the child’s education. This removes the issue of schools not using pupil premium funding directly targeted to that particular pupil. It also ensures the attainment gap is lowered, setting up pupils for brighter futures. Moreover, national projects could be implemented in libraries such as helping students with schoolwork and greater financial literacy projects, ultimately creating a ‘free tuition’ scheme. This would not only boost national results, but also create more jobs, reducing unemployment.
Wealth inequality is an inevitable issue that stems from an economy built on capitalism, whereby those with existing wealth are enabled to accumulate more. However, those without, are unable to ‘climb the ladder’ and have limited social mobility. By encouraging local businesses to create partnerships with schools, particularly for those in disadvantaged areas, pupils are more aware of what opportunities are available for them. Taking control of wealth inequality relies on real change, not just promises.
References:
Office for National Statistics (n.d.) The scale of economic inequality in the UK. Available at: https://equalitytrust.org.uk/scale-economic-inequality-uk/ (Accessed: 18 June 2025).
Office for National Statistics (2024) Regional gross disposable household income, UK: 1997 to 2022. Available at: https://www.ons.gov.uk/economy/regionalaccounts/grossdisposablehouseholdincome/bulletins/regionalgrossdisposablehouseholdincomegdhi/1997to2022 (Accessed: 19 May 2025).
Social Mobility Commission (2019) Elitism in Britain, 2019. Available at: https://www.gov.uk/government/news/elitism-in-britain-2019 (Accessed: 5 May 2025).
National Institute of Economic and Social Research (2024) Levelling Up: What’s gone wrong and how should it change? Available at: https://niesr.ac.uk/blog/levelling-whats-gone-wrong-and-how-should-it-change (Accessed: 12 June 2025).
Lynes, M. (2021) The Forgotten Land: A Look at Northern England. Available at: https://thenewglobalorder.com/world-news/the-forgotten-land-a-look-at-northern-england/#:~:text=However%2C%20beginning%20in%20the%201980s%2C%20the%20UK,the%20South%20and%20in%20particular%20in%20London - Accessed: 20 June 2025
Unknown author (n.d.) Class differences in Education. Available at: https://classdifferenceineducation.weebly.com/gewirtz-marketisation-and-parental-choice.html (Accessed: 27 May 2025).
Farquharson, C., et al. (2024) How do the last five years measure up on levelling up? London: Institute for Fiscal Studies. Available at: https://ifs.org.uk/publications/how-do-last-five-years-measure-levelling#:~:text=By%202030%2C%20domestic%20public%20investment,in%20the%20greater%20South%20East (Accessed: 3 June 2025).
Stripp, C. (2023), Maths education: the present, the future, and how to get there. NCETM, Available at: https://www.ncetm.org.uk/features/maths-education-the-present-the-future-and-how-to-get-there/ (Accessed: 25 June 2025).