Blog & Articles

Family debt

Goodbye to the good life

Date: 16. November 2011
Gavin Kelly and James Plunkett

This article originally appeared in Prospect

In the three months from July to September, Britain’s economy actually grew—by 0.5 per cent. That performance was less bad than many had feared, and some have seized on it as a source of hope. For Chancellor George Osborne it was a “positive step… laying the foundations for the future success of the country.” Even Bank of England Governor Mervyn King, hitherto the nation’s self-appointed prophet of economic doom, recently said that the squeeze “is now beginning to come to an end.” Whether or not such sparks of hope prove justified, they obscure a much bigger question: even if the economy recovers, will living standards improve?

read more


Money in hands

Squeezed households will need higher wages

Date: 26. August 2011
James Plunkett and

This article originally appeared on the Prospect blog.

While Libya takes the spotlight, the British economy wheezes in the dark. Monday’s survey from Markit showed household finances worsening at their fastest rate since early 2009. Yesterday, a new poll from the Resolution Foundation confirmed that picture. Half of all low-to-middle income households say they’re running out of cash each month; only one in four are making regular savings. Many households now face the unenviable choice between cutting their spending still further and increasing their borrowing. Needless to say, at the national level, neither option translates into a promising path to recovery.

read more


Share this

Filters

Rss Feed

Archive

Tag Cloud

Gavin Kelly Resolution Foundation living standards childcare James Plunkett Housing inflation wages tax credits Squeezed Middle tax Vidhya Alakeson coalition inequality Matthew Whittaker minimum wage new statesman Debt Spending Review female employment low pay Squeezed Britain Universal Credit autumn statement growth Labour USA welfare women work incentives Budget 2012 employment generation rent giselle cory household income IFS institutional investment labour market living wage low to middle income politics social mobility affordability Audit budget 2011 cameron Commission on Living Standards distribution earnings economy Ed Miliband education fiscal choices interest rates living low pay commission older workers recovery skills social care spending round sr2013 unemployment zero hours Affordable Housing America budget child benefit child poverty cost of living David Cameron debt target degree Guardian income jared bernstein joe coward lee savage Lib Dems living costs measuring poverty middle class Obama pay poverty recession tax cuts uk 10p arrears benefits borrowing Commission cpi cuts david willetts debt forgivenes dilnot Donald Hirsch fiscal forbearance gearing George Osborne great stagnation household household debt housing market huffington post income tax ippr Ipsos MORI jobs gap lane kenworthy Low earners matthew pennycook mortgages Nick Clegg pension Pensions personal allowance personal allowances polarisation precarious work prices prospect q2 growth regional renting rpi shared ownership social housing social mobility foundation Sophia Parker standards sutton trust tax changes tax relief think tank think-tank underemployment Wage squeeze 2013 Work working poor zero hours contract 'Annual Survey of Hours and Earnings' 'earnings squeeze' 'squeeze' 'wage stagnation' #ows £10000 2011 2012 50p 99% a matter of time Alan Johnson Alex Hurrell allowance andrew haldane Anna Vignoles apprenticeships ASHE assets Australia bank of england below minimum wage benefit freezes borgen Boris Johnson budget 2013 cap care assistant centreforum chancellor childcar choices CiF citizens UK Coalition politics Conor D'Arcy conservatives Cost of Motherhood costs council tax council tax benefit CPIH daniel chandler datablog de-coupling debt peril deficit department for education dependency election election 2015 enforcement equity release family felicity dennistoun Financial Times first-time buyers food prices full employment gap GDP gender gingerbread good life gregg growth without gain HELP Committee higher rate higher rate tax relief hmrc holmes homeownership hourglass household finances household spending illegal in work income inequality incomes increase Independent indignados international jobs John Van Reenen jrf Labour Party Left Foot Forward liberal democrats living wage foundation LMIs low middle earners Low Pay Britain low pay threshold low to middle income earners low wage low wage work machin marginal tax rate marriage tax allowance matt whittaker matthew hancock mayhew median real wage median wage Mervyn King Middle Britain miminum wage minimum income standards missing out mobility monetary policy Montague mortgage market mothers national minimum wage netmums new statesman blog new year newby newham niesr nil hours number paid below minimum wage nursery world OBR occupy occupy wall street OECD older ons over 50s paul gregg pay and pensions pay progression pensions relief personal personal finance pledge cards policy politicans poll population precarious employment predistribution prescription charges priorities private rented private rented sector private sector growth progression prs public sector public services public spending ratios reduce credit card reform Regions Rented Sector resolution foudnation retirement robin wales robots routine jobs RPIJ rss savings Senate shared shereen hussein social society southern cross spending cuts squeezed state state pension age statistics steve machin tax and benefit changes tax and benefits Tax Benefits technology The Spirit Level threshold tories travel time Treasury trends unison university US election van reenen VAT voters voting wage wage growth wage inequality Welfare Debate welfare state White Paper workers Working part time lower skilled job young people Youth unemployment youth wages