Russia

Britain suffers biggest wealth slump since Covid-19 – UBS

RT English · 2026-07-01

AI SUMMARY

• What happened: Britain has experienced the largest decline in household wealth among high-income economies since the Covid-19 pandemic, with a 23.2% decrease in average wealth per adult from 2020 to 2025, according to the UBS Global Wealth Report 2026. • Why it matters: This significant drop in wealth is attributed to rising inflation, an energy crisis linked to the Ukraine conflict, weak housing price growth, and underperforming stock markets, all contributing to a broader cost-of-living crisis in the UK. • What to watch next: Observers should monitor the UK government's response to these economic challenges, including potential policy changes following Prime Minister Keir Starmer's resignation, and the impact of ongoing geopolitical tensions on household wealth and living standards.

**Britain Experiences Largest Decline in Household Wealth Among High-Income Economies Since Pandemic, Reports UBS**

Britain has recorded the most significant drop in household wealth among high-income nations since the onset of the Covid-19 pandemic, according to the UBS Global Wealth Report 2026. This annual report, published by the Swiss bank UBS, evaluates household net wealth across 56 markets that collectively represent over 90% of global wealth.

The report highlights that between 2020 and 2025, the average wealth per adult in Britain decreased by 23.2%, marking the steepest decline among the developed economies included in the survey. As of the latest figures, the median wealth per adult in the UK stands at just over £95,500 (approximately $126,500). This positions the average British adult slightly ahead of their French counterparts but trailing behind Italians and the Dutch in terms of wealth.

UBS chief economist Paul Donovan explained that the decline in wealth can be attributed to several interrelated factors. A significant surge in inflation following the pandemic has played a crucial role, compounded by an energy crisis that escalated due to the conflict in Ukraine in 2022. Additionally, the report notes that the growth in housing prices has been weak, and the performance of Britain's stock market has lagged behind that of the United States.

These findings emerge amid a broader cost-of-living crisis in Britain. Recent official data indicated that real household disposable income experienced a decline in the first quarter of 2026, coinciding with sluggish economic growth. The report's release comes shortly after Prime Minister Keir Starmer announced his resignation, a decision made under increasing political pressure.

While the government has pointed to easing inflation rates and stronger-than-expected GDP growth, critics argue that many households have not seen tangible improvements in their living standards. They cite ongoing cost-of-living challenges, rising taxes, and continuous drops in real household disposable income as evidence of persistent economic struggles.

In a stark contrast to Britain's situation, the UBS report revealed that Russia experienced a remarkable increase in average wealth per adult, ranking second only to South Korea. Despite facing more than four years of Western sanctions, Russia's average wealth per adult grew by 36.9% in real terms from 2020 to 2025.

As the UK grapples with these economic challenges, the implications for households and the broader economy remain significant, raising questions about future recovery and growth in the wake of the pandemic and ongoing geopolitical tensions.

Source: RT English
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