Analysis and action on living standards
A New Economic Strategy for Britain
The beginning of April brings a new tax year, and a flurry of tax, benefit and pay policy changes coming into effect. But these changes will create a mix of winners and losers, depending on how much you earn, how old you are, and where you live.
The Resolution Foundation is an independent think-tank focused on improving living standards for those on low to middle incomes. We work across a wide range of economic and social policy, combining our core purpose with a commitment to analytical rigour.
Alongside the UK’s stagnant wage growth, there is another huge labour market challenge facing the next government: rising economic inactivity and health-related benefit claims. This rise has been U-shaped by age, with the youngest and oldest workers accounting for nine-tenths of the rise in economic inactivity since the end of 2019. These developments are concerning, first and foremost for the 2.7 million people whose health and living standards are affected, but also for the Treasury.
The minimum wage is the single most successful economic policy in a generation, raising the pay of the nation’s lowest paid workers by £6,000 a year compared to their earnings simply rising in line with typical wages. The policy was introduced in the face of fierce opposition, but now experiences strong cross-party support and the UK's minimum wage is now one of the highest in the world.
The Resolution Foundation calculates the real Living Wage – a voluntary hourly pay rate that is based on what families need to get by. The current national rate is:
Resolution Ventures exists to back innovative start-ups seeking to change the world of work for the better and early-stage ventures seeking to improve the prospects of low-to-middle income Britain.
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