Report finds top 2% of households have 18% of wealth in Scotland

The wealthiest households in Scotland have on average £1.7m in total wealth, while in comparison the least wealthy had just £7,600, a new report has revealed.

With the figures showing the wealthiest 2% of households have almost a fifth (18%) of wealth in Scotland, campaigners said the data highlighted “the vast scale of unfairness in Scotland today”.

The report looked at wealth in Scotland – which includes the physical wealth of households’ belongings, as well as savings and investment, property and pension wealth.

The latest data, for the period 2018 to 2020, showed median household wealth in Scotland stood at £214,000 – with this down from £242,700 in 2016 to 2018 and £250,700 in 2014 to 2016.

The report, which was published by the Scottish Government, noted: “A typical household in the wealthiest 10% of households had £1.7m in total wealth, whereas a typical household in the least wealthy 10% of households had £7,600.”

It added: “The least wealthy households rarely own property or have any private pension savings. Their wealth is mainly made up of the value of their possessions such as cars, furniture and clothing.”

The report also noted that wealth can “vary a lot by age”, saying that “younger households are less likely to have much or even any pension or property wealth, and most of their wealth is made up of the value of their belongings (physical wealth)”.

It added: “In general, people start building up wealth once they start receiving a salary, buy some goods, maybe save some money, and pay into a private pension scheme such as a workplace pension.

“Many buy a home, and through paying off their mortgage they build property wealth.”

Meanwhile when people retire, the report said that “pension wealth gets drawn upon and used up, while some people also downsize their homes and reduce their property wealth”.

However campaigners at Tax Justice Scotland – which wants Holyrood’s powers to be used to deliver greater equality – insisted changes are needed to “share wealth more fairly”.

Speaking on behalf of the group Scottish Trades Union Congress, general secretary Roz Foyer said: “These figures show the vast scale of unfairness in Scotland today.

“Whilst those at the top accumulate more wealth, more than one in five children grow up in poverty and our public services are starved of the investment they urgently need. This cannot go on.”

Ms Foyer demanded: “We need urgent tax reform to help share wealth more fairly and to distribute resources right across the country.

“Over time, public finance pressures mean that most of us may need to pay a bit more, but this data makes clear this must start with those at the very top.

“In Scotland, that means parties must set out clear plans to scrap Council Tax and replace it with a fairer, modern property tax.

“At the UK level, we also need common sense wealth taxes that ensure the richest pay their fair share.”

She insisted: “It’s time for our political leaders to step up with serious tax plans to help close this growing wealth gap and to invest in creating a fairer, more prosperous future for all of us.”

Scottish Green equalities spokeswoman Maggie Chapman criticised the “obscene inequality in these statistics”, adding: “There is a small number of people who are very well off, and a far greater number who have very little.”

She added: “Scotland has a very long way to go if we are to build a fairer society, and this must be a clarion call for change.”

Meanwhile, Liberal Democrat MSP Willie Rennie said that “so many people are finding that there is nothing left at the end of the month”.

He said: “People are paying the price for the SNP’s incompetence and Liz Truss and the Conservatives crashing the economy.”

Social Justice Secretary Shirley-Anne Somerville said: “As a result of Scottish Government policies, the poorest 10% of households with children are estimated to be £2,600 a year better off in 2025-2026.”

However, she added: “Inequality is still too high, with too many economic powers left in the hands of the UK Government which has too often sought to balance the books on the backs of the poorest.

“With the full powers of independence, Scotland could do more to take a different approach from the UK status quo, and take decisions which would make Scotland the fairer, more equal country that we want to see.”