Asset price appreciation was the primary driver of this rise in total wealth, but it was supported by increases in savings and falls in overall debt, according to the report from The Resolution Foundation.

According to the report, the pandemic has caused the first UK recession in at least 70 years in which wealth has increased, aggravating pre-pandemic trends of growing aggregate wealth and increasing wealth gaps between households has continued during the crisis.

Families in the middle of wealth distribution have seen their wealth rise the most in relative terms, while those at the top enjoyed the larges absolute gains.

The wealth gap between the richest 10% of families and the median family grew by £40,000 during the pandemic and now stands at 55 times typical household income.

Those at the bottom of the income distribution were more likely to see savings decrease, and were less likely to pay off debt, than families higher up the income distribution.

Overall, according to the report, households have increased nominal savings by around £125bn more than would have been expected absent the pandemic. Non-credit card consumer debt has also fallen by around £10bn.

The Resolution Foundation is an independent research and policy organisation which undertakes research and analysis to understand the challenges facing people on a low to middle incomes.

The Resolution Foundation joined the Standard Life Foundation to embark on an investigation into the role of wealth in 21st century Britain. This latest report is part of a three-year programme the foundations are supporting.