Government intervention will limit energy bills rise today to 7 per cent – but families in poorly insulated homes still face huge increases this winter

The Government’s Energy Price Guarantee and £400 Energy Bill Support Scheme discount means that the average household will see annual bills increase by just 7 per cent – from £1,971 in April to £2,100 – when the energy price cap rises today. But even with hugely welcome intervention on this scale, millions of families across … Continued

Economic turmoil matters for family finances as well as financial markets

The market’s reaction to last Friday’s fiscal statement will have a material impact on household incomes; in the short-term through higher inflation; in the medium-term through higher mortgage payments; and, in the long term as higher borrowing exacerbates tax and spending trade-offs, the Resolution Foundation said today (Monday). The size of the Government’s fiscal package … Continued

Chancellor delivers ‘southern comfort’ statement with households in London and South East gaining three times as much as those in the North from tax cuts next year

The Chancellor’s huge package of personal tax cuts confirmed yesterday will disproportionately benefit London and the South East – with households in these regions standing to gain to three times as much on average (£1,600) as those living in Wales, the North East and Yorkshire (£500) next year – according to the Resolution Foundation’s overnight … Continued

Chancellor announces largest tax cuts in 50 years, driving a £411 billion borrowing surge that will break the fiscal rules

Almost half of the personal tax cuts confirmed today will go to richest 5 per cent of population

The Chancellor’s £45 billion package of tax cuts announced today, the largest in a single fiscal event since Anthony Barber’s ill-fated 1972 Budget, will boost growth in the short-term but raise interest rates and see an additional £411 billion of borrowing over five years, the Resolution Foundation said in response to today’s fiscal statement. The … Continued

Reversing the National Insurance rise will give most to those who need help the least

Commenting on the Chancellor’s announcement this afternoon (Thursday) that the Government will reverse the recent 1.25 per cent increase in the National Insurance contribution (NICs) rate from 6 November this year, Karl Handscomb, Senior Economist at the Resolution Foundation, said: “While raising National Insurance was a flawed way to fund social care provision that would … Continued

England’s private renters have lost floor space equivalent to the size of Nottingham over the past 20 years

Private renters’ average floor space per person in England has fallen by 16 per cent over the past 20 years – floorspace collectively equivalent to the size of Nottingham – while rents as a share of income have remained stubbornly high, according to new Resolution Foundation research published today (Saturday). The Foundation’s latest Housing Outlook … Continued

Tight labour market may see Britain’s pay squeeze bottom out, but is not turning around our shrinking workforce

Britain recorded its sharpest real pay fall since 1977 this summer. But with nominal pay growth strengthening and the Energy Price Guarantee set to reduce inflation by around four percentage points relative to what it might otherwise have been, the depth of Britain’s pay squeeze may bottom out this autumn, the Resolution Foundation said today … Continued

Liz Truss sets out plans for government to cover three-quarters of the rise in energy bills this winter, but ducks question of its £120 billion plus price tag

Liz Truss first major act as Prime Minister has been to set out an energy support package to hugely reduce the scale of the living standards catastrophe this winter by covering three-quarters of the rise in energy bills, but households will still get poorer over the course of the parliament, the Resolution Foundation said today … Continued

Soaring price cap means energy bills are set to treble this winter to around £500 a month – and over £700 in January alone

Ofgem’s announcement today (Friday) that the energy price cap is set to increase from £1,971 to £3,549 this October, and is likely to rise further in January, means that monthly energy bills could be three times higher this winter than last year, at around £500 a month, according to new Resolution Foundation analysis. The analysis, … Continued

New PM must think the unthinkable on energy bills support, as winter catastrophe threatens families’ physical and financial health

The new Prime Minister will need to introduce radical new policy support – such as energy bill freezes and solidarity taxes, or unprecedented social tariffs costing tens of billions of pounds – to prevent the deepening energy bills crisis becoming a serious threat to families’ physical and financial health this winter, according to a new … Continued

Rising food prices drive Britain into double digit inflation

CPI inflation hit double digits (10.1 per cent) in July, with Resolution Foundation analysis of the latest data today (Wednesday) showing that it was even higher for the poorest tenth of households – at 10.9 per cent. Another significant increase in inflation from 9.4 per cent in June to 10.1 per cent in July was … Continued

Workers plunged into deepest pay squeeze since the Silver Jubilee

Real average weekly earnings fell by 3 per cent in the three months to June, the biggest fall since 1977, the Resolution Foundation said today (Tuesday) in response to the latest ONS labour market statistics. The latest data is dominated by near double-digit inflation, which according to the Foundation’s analysis of longer-term ONS and Bank … Continued

The UK’s wealth gaps have grown to over £1.2 million

Soaring levels of wealth across the UK, coupled with high levels of wealth inequality, mean that the wealth gap between the top and middle tenth of households in the UK has grown to a record £1.2 million per adult, according to new Resolution Foundation analysis published today (Wednesday). Arrears Fears, the Foundation’s third annual wealth … Continued

1.3 million families – including one-in-twelve poor families – have no savings to cope with rising cost pressures or unexpected expenses

1.3 million families across Britain had no savings prior to the pandemic – including one-in-twelve of the poorest tenth of households – with a third admitting they would have to rely on friends and families for help in the case of an unexpected expense, according to new Resolution Foundation research to be published later this … Continued

Britain must get serious about its toxic combination of low growth and high inequality that has left typical families £8,800 poorer than their counterparts in comparable countries

Britain’s toxic combination of low growth and high inequality has left it trailing behind the comparable economies of Australia, Canada, France, Germany and the Netherlands, with disastrous consequences for low- and middle-income households. But a new economic strategy aiming to address this failure needs to be serious about the scale of change required, and go … Continued

Low levels of worker power holding down wages by almost £100 a week

Low levels of worker power – after four decades of falling trade union membership – are likely to be holding wage levels down by as much as £100 a week for the average worker, according to new Resolution Foundation research published today. Power plays – the 29th report for The Economy 2030 Inquiry, a collaboration … Continued

Fifteen years of income stagnation have left families brutally exposed to the current cost-of-living crisis

Real typical household disposable income growth for working age families has slumped to just 0.7 per cent a year in the 15 years leading up to the Covid-19 pandemic, leaving households, particularly those in rented accommodation and with young children, brutally exposed to the current cost-of-living crisis, according to new research published today (Monday) by … Continued

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