Wealth inequality can no longer be ignored, working people are struggling to afford the essentials - Daxa Patel

The cost of living is rising and the basics cost more. Pensioners with modest savings often wonder what the point was of saving at all, when what little they have may be taxed or consumed by care home fees. An uncomfortable truth is staring us in the face.

The rich are becoming richer every second of the day, while those earning around £30,000 a year are becoming poorer. It would be understandable if someone on such a wage concluded that it is better to rely on benefits than work, because the cost of childcare is onerous, never mind saving enough for a deposit on a first home, something their parents achieved with relative ease in their 20s.

It does not require specialist knowledge to recognise that something has gone profoundly wrong within our economic landscape. Wealth is becoming increasingly concentrated in the hands of a small minority, while the financial pressures facing working people continue to intensify. Even many who are objectively better off than previous generations often feel less secure. Statistics may suggest progress. Everyday experience tells a different story.

When watching Gary Stevenson, a former City trader, discuss inequality in a recent interview with Krishnan Gurumurthy, I was struck not only by the figures he presented but by the broader question they raise. Stevenson argues that the concentration of wealth is no longer merely a social concern but a defining economic challenge. Whether one agrees with every aspect of his analysis or not, it is difficult to dismiss the underlying trend. Wealth is not simply accumulating at the top of society. It is compounding at a pace that wages and ordinary incomes cannot match.

When wealth generates further wealth through investments, property and financial assets, those who already possess substantial resources move progressively further ahead. In essence, they make money in their sleep. The gap ceases to be one of income alone. It becomes one of opportunity, influence and security. Over time, inequality becomes one of the defining characteristics of the system.

Stevenson's central argument concerns the taxation of wealth. Borrowing cannot remain the answer to every fiscal challenge, and governments must decide how to fund public services in a sustainable way.

That choice will involve higher taxation, reduced spending or a mixture of both. Stevenson believes that taxing accumulated wealth is economically necessary and socially fair, while critics warn that it may deter investment or drive capital abroad. These are legitimate arguments. What is no longer legitimate is the pretence that no argument is needed at all.

The effects of wealth inequality extend far beyond bank balances. They shape the quality of life experienced by millions. Home ownership, once considered an achievable aspiration for many working families, has become increasingly unattainable. Saving for retirement has become more difficult. Rising housing costs consume a greater proportion of household income, while secure employment no longer guarantees financial stability. Technological advances may have improved convenience, but convenience cannot compensate for the growing anxiety that accompanies economic insecurity.

Perhaps the greatest misconception is that wealth inequality concerns only the rich and the poor. Increasingly it affects the middle classes as well. Many households with respectable incomes nevertheless feel permanently exposed to financial shocks.

Wealth also brings influence. Those with significant financial resources possess greater capacity to shape markets, political priorities and public debate. They are better equipped to absorb economic downturns, invest during periods of uncertainty and protect future generations through inherited assets. Families without such advantages, which is the majority, possess no comparable safety net. The difference is not merely financial. It becomes a question of power and resilience. Successful businesses, entrepreneurs and investors make important contributions to economic growth. Equally, a healthy economy depends upon broad participation and shared prosperity. When too much wealth becomes concentrated within too few hands, economic dynamism itself may begin to suffer.

Daxa Manhar Patel is a leadership coach, author and solicitor.