Data published by the Wealth and Assets Survey (WAS) has showed that British household wealth hit a record high of £13.6 trillion in the two years to March 2022.

The survey found that British household wealth grew at a faster pace than the size of the UK economy.

It also revealed that there are ‘growing wealth gaps’ between generations – between 2018 to 2020 and 2020 to 2022, typical financial wealth for an individual aged between 65 and 74 rose by £3,300 compared to an increase of just £800 for a person aged between 25 and 34.

Think tank the Resolution Foundation suggested that high inflation and rising interest rates are likely to have eroded the real value of household wealth during the cost-of-living crisis.

Simon Pittaway, Senior Economist at the Resolution Foundation, said: ‘New data shows British household wealth reached £13.6 trillion on the eve of the cost-of-living crisis – six times larger than the size of the economy.

‘While this wealth creation is good news for many, the increases in wealth were not equally shared, with financial wealth for someone aged between 65 and 74 increasing by £3,300 in real terms, compared with just £800 for someone aged between 25 and 34.’