Intergenerational wealth transfers drive inequality in Britain

By Nuffield Foundation

Over one-third of British households report receiving a wealth transfer in the form of an inheritance or substantial gift from their parents at some point, according to new Nuffield-funded research from the Institute for New Economic Thinking at the University of Oxford.

This is similar to some other rich countries such as France, Germany and Italy but much higher than the US.

The team also found that those with a university-level education receive substantially more in transfers than those with lower levels of education, particularly in Britain. These intergenerational transfers are associated with markedly higher wealth for the households receiving them, and represent one important channel through which advantage is transmitted across generations.

Wealth inequality is central to current debates about inequality and fairness in Britain and across rich countries. This study is the first to contrast patterns of intergenerational wealth transmission and its impact on wealth inequality in Britain with other rich countries and learn from that comparison.

The team used the Wealth and Assets Survey for Britain and campared the data with wealth surveys for France, Germany, Ireland, Italy, Spain and the US. A relatively high proportion of those under 35 reported receiving some inheritence in Britain but the amounts were low so only about 5% of the total wealth transferred went to them, compared with 40% for those aged 65 or older. Those in the top quarter of the wealth distribution had received two-thirds of the total wealth transferred compared with 15% going to the bottom quarter – though about one-third of those at the very top of the wealth distribution had not received any wealth directly from their parents.

This has implications for reforming taxation of inheritance and intergenerational gifts. These taxes currently account for less than 1% of tax revenue in the UK, down from 2.5% in the 1960s, and their structures vary markedly across rich countries. The merits of a fundamental structural shift to a lifetime capital acquisitions tax should be taken seriously, as one element in the broader debate about wealth taxation now coming to the fore in the UK and other rich countries.

More about this project


Explore our projects

Medical-professional-massages-patient-knee-Understanding-joint-replacement-surgery-decision-making-for-older-patients-PROJ
In progress

Welfare | 2020 - 2023

Supporting older patients to make informed decisions about knee surgery

View project
Older-man-reads-textbook-Assembling-data-jigsaw-Greater-Manchester-PROJ
In progress

Welfare | 2020 - 2024

Assembling the data jigsaw: powering robust population research in MSK disease

View project
Woman-medical-professional-treats-patient-impact-MSK-conditions-outcomes-other-illnesses-PROJ
In progress

Welfare | 2020 - 2022

The impact of musculoskeletal conditions on outcomes of other illnesses

View project
Female-nurse-sees-patient-in-office-Integrating-enriched-longitudinal-data-North-Staffordshire-Stoke-on-Trent-PROJ
In progress

Welfare | 2020 - 2025

Enriched data integration for population musculoskeletal health intelligence

View project
Older-man-and-woman-walk-together-Geographical-mapping-prevalence-outcomes-MSK-conditions-Wales-Scotland-PROJ
In progress

Welfare | 2020 - 2022

Mapping rheumatic and musculoskeletal disease in Scotland and Wales

View project
In progress

Welfare | 2020 - 2022

Older people in England: the geography of challenges and opportunities

View project
In progress

Welfare | 2020 - 2022

Vulnerability, migration and well-being: experiences, perceptions and barriers

View project
Senior-woman-enjoys-video-call-on-smartphone-Social-cohesion-in-context-of-COVID-19-PROJ
In progress

Welfare | 2020 - 2021

Social cohesion in the context of COVID-19

View project
Toddler-gleefully-eats-baked-beans-How-COVID-19-is-affecting-food-security-proj
In progress

Welfare | 2020 - 2021

How the COVID-19 crisis is affecting food security

View project
Woman-looks-at-smartphone-screen-How-the-UK-public-gets-information-about-COVID-19-PROJ
In progress

Welfare | 2020 - 2020

How the UK public gets information about COVID-19

View project
In progress

Welfare | 2020 - 2021

COVID realities: families on low incomes during the pandemic

View project
In progress

Welfare | 2020 - 2022

COVID-19 social study

View project
In progress

Welfare | 2020 - 2022

Vulnerability, migration and well-being: experiences, perceptions and barriers

View project
Toddler-gleefully-eats-baked-beans-How-COVID-19-is-affecting-food-security-proj
In progress

Welfare | 2020 - 2021

How the COVID-19 crisis is affecting food security

View project
In progress

Welfare | 2020 - 2022

Older people in England: the geography of challenges and opportunities

View project
Senior-woman-enjoys-video-call-on-smartphone-Social-cohesion-in-context-of-COVID-19-PROJ
In progress

Welfare | 2020 - 2021

Social cohesion in the context of COVID-19

View project
Teenage-girl-looks-at-smartphone-next-to-laptop-Growing-up-under-COVID-19-PROJ
In progress

Education | Welfare | 2020 - 2021

Growing up under COVID-19

View project
In progress

Welfare | 2020 - 2022

COVID-19 social study

View project
In progress

Welfare | 2020 - 2021

COVID realities: families on low incomes during the pandemic

View project
Woman-looks-at-smartphone-screen-How-the-UK-public-gets-information-about-COVID-19-PROJ
In progress

Welfare | 2020 - 2020

How the UK public gets information about COVID-19

View project
Woman-medical-professional-treats-patient-impact-MSK-conditions-outcomes-other-illnesses-PROJ
In progress

Welfare | 2020 - 2022

The impact of musculoskeletal conditions on outcomes of other illnesses

View project
Man-massages-own-hand-Longitudinal-evidence-how-arthritis-affects-earnings-PROJ
In progress

Welfare | 2020 - 2022

How arthritis affects earnings over time

View project
Medical-professional-massages-patient-knee-Understanding-joint-replacement-surgery-decision-making-for-older-patients-PROJ
In progress

Welfare | 2020 - 2023

Supporting older patients to make informed decisions about knee surgery

View project
Older-man-and-woman-walk-together-Geographical-mapping-prevalence-outcomes-MSK-conditions-Wales-Scotland-PROJ
In progress

Welfare | 2020 - 2022

Mapping rheumatic and musculoskeletal disease in Scotland and Wales

View project
Older-man-reads-textbook-Assembling-data-jigsaw-Greater-Manchester-PROJ
In progress

Welfare | 2020 - 2024

Assembling the data jigsaw: powering robust population research in MSK disease

View project
Medical-professional-massages-patient-knee-Understanding-joint-replacement-surgery-decision-making-for-older-patients-PROJ
In progress

Welfare | 2020 - 2023

Supporting older patients to make informed decisions about knee surgery

View project
Woman-medical-professional-treats-patient-impact-MSK-conditions-outcomes-other-illnesses-PROJ
In progress

Welfare | 2020 - 2022

The impact of musculoskeletal conditions on outcomes of other illnesses

View project
Female-nurse-sees-patient-in-office-Integrating-enriched-longitudinal-data-North-Staffordshire-Stoke-on-Trent-PROJ
In progress

Welfare | 2020 - 2025

Enriched data integration for population musculoskeletal health intelligence

View project
Older-man-and-woman-walk-together-Geographical-mapping-prevalence-outcomes-MSK-conditions-Wales-Scotland-PROJ
In progress

Welfare | 2020 - 2022

Mapping rheumatic and musculoskeletal disease in Scotland and Wales

View project
In progress

Welfare | 2020 - 2022

Older people in England: the geography of challenges and opportunities

View project
Senior-woman-enjoys-video-call-on-smartphone-Social-cohesion-in-context-of-COVID-19-PROJ
In progress

Welfare | 2020 - 2021

Social cohesion in the context of COVID-19

View project
In progress

Welfare | 2020 - 2022

Vulnerability, migration and well-being: experiences, perceptions and barriers

View project
Toddler-gleefully-eats-baked-beans-How-COVID-19-is-affecting-food-security-proj
In progress

Welfare | 2020 - 2021

How the COVID-19 crisis is affecting food security

View project
Woman-looks-at-smartphone-screen-How-the-UK-public-gets-information-about-COVID-19-PROJ
In progress

Welfare | 2020 - 2020

How the UK public gets information about COVID-19

View project
In progress

Welfare | 2020 - 2021

COVID realities: families on low incomes during the pandemic

View project
In progress

Welfare | 2020 - 2022

COVID-19 social study

View project
Reported

Welfare | 2019 - 2020

Valuing data: foundations for data policy

View project
Reported

Welfare | 2019 - 2020

Revaluation and reform: bringing council tax into the 21st century

View project
Reported

Welfare | 2018 - 2019

Atlas of inequality: understanding the local nature of a global phenomenon

View project
Reported

Welfare | 2018 - 2020

The intergenerational transmission of family wealth

View project
Reported

Welfare | 2018 - 2018

Interdisciplinary conference on evidence use in policy

View project
Reported

Welfare | 2018 - 2019

Overview of the major ethical issues arising from data, algorithms and AI

View project
Reported

Justice | Welfare | 2018 - 2019

Pathways of incarcerated children in care

View project
Reported

Welfare | 2018 - 2018

Council tax support schemes’ impact on claimants & local authorities

View project
Reported

Welfare | 2018 - 2018

Improving survey representation of non-resident parents

View project
Reported

Justice | Welfare | 2017 - 2018

Visualising data in care proceedings

View project
Reported

Justice | Welfare | 2017 - 2018

Addressing the ‘care cases’ crisis: a sector-led review

View project
Reported

Welfare | 2017 - 2018

Vulnerable migrants and well-being: A pilot study

View project
Search projects

We improve people’s lives by funding research that informs social policy, primarily in Education, Welfare and Justice. We also fund student programmes that give young people skills and confidence in science and research.

We offer our grant-holders the freedom to frame questions and enable new thinking. Our research must stand up to rigorous academic scrutiny, but we understand that to be successful in effecting change, it also needs to be relevant to people’s experience.

Profile