Net zero could play key role in driving growth and ‘levelling-up’ the country, but is not a silver bullet for the UK’s lack of an economic strategy

A net zero investment plan that leverages the UK’s existing economic strengths could help to drive growth and ‘level up’ the country as the benefits would be concentrated in lower-productivity areas of the UK outside London and the South East, according to new research from the LSE and Resolution Foundation published today (Monday). Growing clean … Continued

Tight labour market drives bonuses up but wider wage squeeze deepens

A tightening labour market and an increasingly mobile workforce is driving up bonuses to hire and retain staff, but the wage squeeze for the wider workforce continues to deepen off the back of rising inflation, the Resolution Foundation said today (Tuesday) in response to the latest labour market statistics. The UK labour market continues to … Continued

Bank opts for longest rate raise run since independence in face of double-digit inflation, but £1,200 income hit per household means rates may not rise as much as markets expect

The Bank of England’s Monetary Policy Committee has opted to raise interest rates at its fourth successive meeting – the first time it has done this since becoming independent 25 years ago – and marked up the scale of Britain’s cost of living crisis by forecasting double-digit inflation and a £1,200 income squeeze, the Resolution … Continued

England’s poorest families are most exposed to the financial consequences of flood events

Expected increases in the frequency and severity of flood events – a consequence of climate change – will hit poorer families hardest due to their lack of insurance cover, according to new research published today (Saturday) by the Resolution Foundation. The Foundation’s quarterly Housing Outlook notes that it is neighbourhoods with middling levels of deprivation … Continued

UK needs to get serious about its future as a services economy, and the challenges that brings

The misplaced view that our economic competitiveness is narrowly built on banking, and that it should be based on manufacturing, distracts from building on our advantages in a wider range of industries – including the arts, biomedical sciences, and intellectual property – and overcoming the inequality challenges they can pose, according to new research published … Continued

Pay growth ‘normal rather than exceptional’ once end of furlough boost is accounted for

A tight labour market has driven underlying nominal wage growth back up, but not beyond, pre-pandemic levels according to new Resolution Foundation research published today (Saturday) that highlights the role of ending furlough in boosting headline pay growth figures. Labour Market Outlook Q1 2022 examines how strong nominal wage growth statistics should be interpreted. Despite … Continued

2.5 million English households are set to fall into ‘fuel stress’ from today, and a further 2.5 million could follow them in October

The number of English households in ‘fuel stress’ will double from 2.5 to 5 million as a result of the price cap rising from today (Friday), with another 2.5 million households at risk in October if the price cap rises again to £2,500, according to new Resolution Foundation briefing. Stressed Out shows that low-income households … Continued

Emergency support helped to protect incomes and reduce poverty during the first year of the pandemic

The Chancellor’s emergency Covid support helped to protect household incomes and reduced both absolute and relative poverty during the first 12 months of the pandemic, the Resolution Foundation said today (Thursday) in the response to the DWP’s latest Households Below Average Income (HBAI) statistics for the financial year 2020-21. The latest HBAI data, which covers … Continued

Chancellor prioritises his tax cutting credentials over low-and-middle income households with £2 in every £3 of new support going to the top half

Income tax cut in 2024 will only see those earning over £49,000 paying less tax

In the face of the tightest income squeeze on record, the Chancellor has provided a significant but poorly targeted package of support, the Resolution Foundation said today (Wednesday) in response to the Spring Statement 2022. Rising inflation is forecast to make the year ahead very difficult for family finances. Real household income per person is … Continued

Fast improving public finances provide backdrop to Chancellor Spring Statement

Commenting on the latest ONS public sector finances for February published this morning, James Smith, Research Director at the Resolution Foundation, said: “The Chancellor will approach the UK’s latest crisis – the tightest income squeeze in generations, exacerbated by the Russian invasion of Ukraine – with the public finances in better shape than expected, increasing … Continued

Higher benefits uprating will deliver four times more support to low-to-middle-income households than scrapping the rise in National Insurance contributions

Uprating benefits by a further five percentage points so that they keep pace with inflation over the coming year would be the most effective way to support families hardest hit by Britain’s cost of living crisis, delivering four times more support to the bottom half of the income distribution per pound spent than scrapping the … Continued

Unemployment nears record low but Britain’s pay squeeze deepens

A tight labour market has seen unemployment fall close to a record low, but surging inflation means that Britain’s ongoing real pay squeeze is getting deeper, particularly for low earners, the Resolution Foundation said today (Tuesday) in response to the latest ONS labour market statistics. The latest ONS data depict the benefits of a tight … Continued

Prolonged conflict in Ukraine could see a second inflation spike this autumn, reaching over ten per cent for poorest households

Rising food and energy prices risk driving a second inflation spike this autumn that could reach over ten per cent for poorer households – significantly higher than the peak for richer households – requiring the Chancellor to focus support in his upcoming Spring Statement on low-and-middle-income families hardest hit by the cost of living crisis, … Continued

Britain faces the biggest income squeeze in generations as Ukraine conflict pushes inflation towards 40-year highs

The conflict in Ukraine is forecast to further push up energy prices and wider inflation (to over 8 per cent this Spring), causing typical household incomes across Britain to fall by 4 per cent in the coming financial year (2022-23), the sharpest fall since the mid-1970s, according to the Resolution Foundation’s annual Living Standards Outlook … Continued

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