While CPI inflation remained unchanged at a corrected rate of 3.4 per cent in May, recent increases in energy prices arising from conflict in the Middle East mean renewed price pressures are set to hit struggling low-income households in the coming months, according to the Resolution Foundation today (Wednesday). The headline rate of CPI inflation … Continued

The British state is slowly turning into a National Health State, with half of all public-service spending set to allocated to health and social care by the end of the decade, according to the Resolution Foundation’s overnight analysis of Spending Review 2025. Key findings from the overnight analysis, which show that the other big winners … Continued

The NHS has again grabbed the lion’s share (90 per cent) of the extra funding for day-to-day public services allocated at the Spending Review, with inflation-adjusted per-person spending flat or falling for most other departments, leaving little to rebuild other public services, the Resolution Foundation said today (Wednesday). After two fiscal events dominated by tax … Continued

The jobs market weakened further in April, losing 55,000 jobs on the previous month and nudging down the employment rate, the Resolution Foundation said today in response to the latest ONS labour market statistics. Early data for May looks worse still, pointing to a fall of 109,000 jobs – but this data is prone to … Continued

Commenting on the Government plan announced today (Monday) to means-test Winter Fuel Payments (WFPs) from this winter with a threshold of £35,000, Alex Clegg, Economist at the Resolution Foundation, said: “The new scheme for means-testing Winter Fuel Payments means that that the number of pensioners receiving support will rise from 1.3 million last winter to … Continued

The Government has increased departmental spending by almost £400 billion since it came to power, with details of future plans to be set out in the Spending Review next Wednesday.  But pressures to increase health and defence spending will make it hard to avoid cuts to other public services, the Resolution Foundation said today (Wednesday). … Continued

The Household Support Fund has helped millions of families in England with their food, energy and water bills, and household essentials since its introduction in 2021, but its effectiveness has been hampered by chaotic and declining funding which needs to be put on a firmer footing, according to new research published today (Thursday). The report, … Continued

The Government’s U-turn on Winter Fuel Payments (WFPs) can take a number of possible routes. But action to assuage pensioner anger cannot be used as an excuse to duck sensible changes to its health and disability benefit reforms, or limit its ambition on tackling child poverty, the Resolution Foundation said today (Wednesday). At Prime Minister’s … Continued

CPI inflation increased sharply in April – rising to 3.5 per cent up from 2.6 per cent in March – mostly driven by rises in energy and water bills and exceeding expectations of markets and the Bank of England. While painful, this higher level of inflation does not represent a return to peak cost of … Continued

The Government’s plans to reform health and disability related benefits and increase employment support could boost employment by up to 105,000 by the end of the Parliament. But these welcome gains are not enough to prevent the reforms from pushing hundreds of thousands of families into poverty, according to new Resolution Foundation research published today … Continued

The UK economy made a stronger than expected start to 2025, with GDP growing by 0.7 per cent in Q1. But recent history, more recent data, and wider global uncertainty, all suggest that Britain’s growth rebound is unlikely to last, the Resolution Foundation said today (Thursday). GDP grew by 0.7 per cent in Q1 2025, … Continued

The Resolution Foundation’s employment rate estimate suggest that it has fallen by 1.3 per cent over the past 23 months, it said today (Tuesday) in response to the latest ONS labour market statistics. The number of payrolled jobs fell by 72,000 in the first three months of the year, while the flash estimate suggests a further 36,000 … Continued

The Bank of England’s take on the impact of President Trump’s first 100 days on the UK economy was low on growth and high on uncertainty, but its downbeat outlook came with some good news for families, the Resolution Foundation said today (Thursday). The big picture context to the Bank’s Monetary Policy Report (MPR) and decision to cut interest rates from 4.5 to 4.25 per … Continued

The Chancellor must balance new growth-boosting infrastructure projects with the need to rebuild Britain’s dilapidated hospitals and social housing when she sets out the details of a £100 billion plus boost to capital budgets at the Spending Review, according to new research published today (Tuesday). The report notes that as well as allocating funding for … Continued

The UK is one of very few countries that has a broad trade balance with the US on goods, which may help to shelter it from President Trump’s reciprocal tariffs, while its growing trade in services shows where future growth may lie, the Resolution Foundation said today (Friday) in response to new ONS data on … Continued

Long-neglected rules governing capital means-testing in Universal Credit (UC) are undermining other Government policies aimed at encouraging lower-income households to accrue savings, according to new research from the Resolution Foundation published today (Thursday). The report Saving penalties – part of a partnership with abrdn Financial Fairness Trust – notes that the current capital thresholds, which … Continued

The UK borrowed £151.9 billion in the past financial year (2024-25) is significantly higher than the Office for Budget Responsibility’s forecast of £137.3 billion made last month – laying bare the Government’s fiscal challenge, the Resolution Foundation said today (Wednesday) in response to the latest ONS data. Borrowing was 5.3 per cent of national income in 2024-25 the highest such borrowing figure since 2013-14 … Continued

CPI inflation dipped in March – falling by 0.2 percentage points to reach 2.6 per cent – but huge global forces will shape changes in the cost of living in the coming months, the Resolution Foundation said today (Wednesday). This drop is welcome, exceeding the expectations of both the market and the Bank of England … Continued

The latest figures on the UK labour market reveal that the employment rate is estimated to have been falling for the two years to March 2025, while pay packets are starting to flatline in real terms – in the last glimpse of the UK labour market before changes to the Minimum Wage and Employer National … Continued

The UK’s 6.8 million foreign-born workers are more likely to experience precarious work than British-born staff – with one-in-six working in some form of atypical employment – leaving them more vulnerable to exploitation than their British-born counterparts, according to new research published by the Resolution Foundation today (Monday). The analysis reveals that among foreign-born workers … Continued

Britain’s roll-out of heat pumps is miles off track, particularly in poorer neighbourhoods where they are less than half as likely to be installed as in richer places, according to new Resolution Foundation research published today (Thursday). The report, funded by the European Climate Foundation, notes that two thirds (64 per cent) of British homes … Continued

After a tough Budget and Spring Statement for low-to-middle income households, the Spending Review could brighten a bleak living standards outlook by prioritising spending on services they use the most, according to new research published today (Wednesday) by the Resolution Foundation. The research notes that public services are crucial for quality of life, providing ‘in-kind’ … Continued

Britain’s already dire productivity record has worsened in the 2020s, in sharp contrast to the US where it has accelerated since 2019. But while this exceptional US performance has been attributed to tech companies and shale gas, there are wider drivers of the UK-US productivity gap that Britain can learn from, according to new Resolution … Continued

As the new tax year begins in April, the outlook for living standards is historically bleak as British households face a triple-hit from higher taxes, utility bill increases, and benefits that aren’t keeping pace with the cost of living – leaving the typical working-age household £400 worse off this financial year, according to new analysis … Continued

The combination of rises in the National Living Wage (NLW) and employer National Insurance (NI) this week will massively increase the cost of employing low paid workers and should prompt a rethink in how the minimum wage is set in future, according to new Resolution Foundation research published today (Monday). Minimum wage, maximum pressure notes … Continued