UK sees increase in billionaire wealth amid rising unemployment
by Neha Dhakal
Billionaires have increased their wealth in the UK during the pandemic while millions have been put on furlough or made redundant.
According to the Sunday Times Rich List, Sir James Dyson and family, the UK’s richest billionaires, have seen a £3.6bn increase in wealth in the year 2020 while Sir Leonard Blavatnik, fourth on the list, has seen an increase of £1.41bn.
Ten other billionaires in the Sunday Times Rich List have become richer this pandemic and in the US, Elon Musk has recently surpassed Jeff Bezos on Forbes’ Billionaire list to become the richest man in the world once again.
This comes as the Institute for Public Policy Research finds that 1.1m people are facing poverty in the UK after the pandemic.
Dr Eric Smith, an economics professor from the University of Essex, said: “Some rich are hurt to some extent — but are likely still in good shape - others are better off financially speaking.”
He further goes on to say that the pandemic has created a lot of opportunism.
The Dyson family were previously ranked fifth on the list so this increase, especially during a pandemic was unexpected although this can be explained through the public being confined to their home space and spending money on household goods.
The Weston family have benefited from a stable industry unlikely to change through most adversities and this is the private food and grocery sector.
They own Loblaw, which is a Canadian supermarket, relying on steady income from outside the UK.
This is contrasted by the increased redundancies and reduced pay received by the working class and most of the UK population.
The furlough scheme, although built to enable employees to maintain their lifestyle, has caused further financial stress.
Victoria Jacklin, 24, from Lincoln, is an example of someone who has recently changed jobs due to this pressure.
Working as a key worker in the hospitality department left her financially and mentally distraught, so she has opted to leave this industry.
“I definitely ended the year in a worse financial situation than I started,” she said.
From personal experience she adds that hospitality is one of the most vulnerable industries right now.
Others have not been as fortunate and have lost their source of income. There was a 1.2 per cent increase in unemployment while redundancies reached 370,000 in the three months leading up to October 2020 according to the Office for National Statistics. Spending has decreased amongst the British public.
According to Barclay’s reports, the recent lockdown saw a 2.3% decrease in spending. This could mean the public may continue to spend less in the future.
Dr Smith added: “The scars of the pandemic, however, will be with us for some years to come as we face deficits, debt, and work realignment.”
The gap between the billionaires and unemployed is mirrored in billionaires in many countries including the USA, China and Canada.
