Wealth matters: a UK policy perspective

This thesis takes a multi-method approach to consider the distribution of wealth in the UK from a policy perspective. I present my findings in two parts. In the first part I use data from the UK’s Wealth and Assets Survey, to consider issues in the measurement of wealth (Chapter 3), the likely scale of the ‘liquidity problem’ should a net wealth tax be introduced (Chapter 4), and the intrahousehold distribution of wealth and its implications for the gender wealth gap (Chapter 5). In the second part, I further explore the intrahousehold distribution of wealth from a qualitative perspective. Here I use evidence from 35 in depth interviews to investigate wealth sharing within couples who live together, giving narrative to the wealth sharing journey (Chapter 6), exploring the social meaning of how wealth is shared or allocated (Chapter 7) and finally considering entitlement in some common situations couples can experience (Chapter 8). In so doing I make several contributions to the literature. Firstly, I place heavy emphasis on the defining importance of measurement issues in policy, an issue that is largely dismissed as insignificant, irrelevant, or unresolved in the extant literature. Secondly, I provide the first estimate of the scale of the ‘liquidity problem’ oft advanced by those concerned about the impact of a net wealth tax. I demonstrate that whilst concerns for single pensioners may be misplaced, farmers and business owners may be more vulnerable to experiencing liquidity difficulties. My co-author for this chapter offers possible solutions. Finally, I offer new insights into the intrahousehold distribution of wealth, quantitatively and qualitatively. I extend the sociological literature on income sharing to actively consider wealth, contributing to the small but growing body of literature on wealth sharing. Here, I demonstrate, via survey data, a large wealth gap exists within couples. I use this evidence to estimate the gender wealth gap for the population, demonstrating a sustained gap that has not significantly closed over the period studied. Qualitatively, I give narrative to the wealth sharing journey, demonstrating that an income-based perspective offers only limited insight to the complicated ways in which assets and debts are shared or allocated within couples. I further offer new insights into the social meaning placed upon the organisation of wealth within the household. Lastly, I present new and updated evidence into the extent to which participants think people should be entitled to one another’s assets, providing important insights for policy makers and legal developments in this field.