White communities still earn over 30% more than others

Britain’s Indian community by and large has avoided the “worryingly large” income gap experienced by other ethnic minority groups in the country that continues to persist despite recent gains, a report published on Monday suggests.

The report by the Resolution Foundation, which examined typical household incomes by ethnicity, found “significant differences”, with white communities (either British or from beyond) earning over 30% more than other ethnic groups.

However, within Britain’s black and minority ethnic (BME) communities, Indians are the best paid, followed by Britain’s Chinese community, according to data collected over the last three years.

While the median household income of white Britons remained between £27,000-£25,600, the median for the Indian community stood at around £25,300.

Vulnerable groups

This is not the case for many of Britain’s other large ethnic groups, with British Bangladeshis, Pakistanis, and black Africans earning 35%, 34% and 22% respectively less than the white British median. “After taking housing costs into account the disposable income gap between typical white British households and Bangladeshi households increase to £9,800 (44%),” the report notes.

While the gap had begun to narrow within the Bangladeshi and Pakistani communities, the report notes that it remains “worryingly large”. The report warns that with some £14 billion of imminent welfare cuts, the situation is likely to worsen for some communities.

The report also notes sharp differences between patterns of home ownership and employment rates.

“Ethnicity can therefore be an important lens through which to view the distribution of living standards in Britain… Some challenges may come from specific cultural factors, others from demographic characteristics such as age, and length of time spent in the U.K. Others will stem from the U.K.’s complex history of immigration…. and the changing pattern of discrimination, integration and social attitudes that has accompanied this,” says the report, which has based its analysis on official household survey.

Among the influencing factors were employment rates, including for women. While the rate of employment of Indian-origin women is lower (around 60%) than the rate among the wider white population, it remains well above levels of other minority groups. Employment rates for men of Indian origin also remain high at around 80%. Of all the ethnic groups, , including white communities, Britain’s Indian community is also least likely to live in social housing.

The latest figures will add to concerns in the country around the fairness of pay, and income inequality. The government estimates that people in ethnic minority households are almost twice as likely to live in poverty as white people. In August last year, the government announced an audit to tackle racial disparities in “public service outcomes”. “The public will be able to check how their race effects how they are treated on key issues such as health, education, and employment,” the government said at the time.