The Omicron wave caused the economy shrink by 0.2 per cent in December, still confirming the strongest annual, peace-time GDP growth (of 7.5 per cent) the UK in almost a century, as the UK now faces up the challenges of high inflation and weak trade, the Resolution Foundation said today (Friday) in response to the … Continued

An ageing population and more expensive healthcare are set to increase public spending by £76 billion a year by the end of the decade, and a new approach will be needed to manage these extra costs as previous approaches of shrinking defence spending and raising National Insurance are likely to run out of road, according … Continued

The Government’s Energy Rebate Plan, which provides almost universal support with energy bills, rather than targeted support for low-income families, will reduce but far from end the rise in fuel stress this April as a result of the energy price cap rising by £693, according to the Resolution Foundation. The Foundation’s analysis shows that – … Continued

The value of inheritances is set to double over the next 20 years, but recipients are in the minority, with fewer than one-in-three (32 per cent) having benefited or expecting to benefit from an inheritance or gift in their lifetime, according to new research published today (Thursday) by the Resolution Foundation. Intergenerational rapport fair? – … Continued

Commenting on the Government’s Levelling Up White Paper published today (Wednesday), Torsten Bell, Chief Executive of the Resolution Foundation, said:  “We now know what levelling up is – George Osborne plus New Labour. The White Paper is all about combining the devolution of the former Conservative Chancellor, with the bigger and more activist state focused … Continued

Young people have returned to work rapidly, with unemployment now lower than pre-pandemic levels, but problems persist, with one-in-three 18-34-year-olds returning to atypical, often insecure work, and the number of economically inactive young men increasing by almost 50,000 since last spring, according to new research published today (Monday 31st) by the Resolution Foundation. Leaving lockdown, … Continued

Responding to today’s ONS release on inflation rate estimates for UK household groups, Jack Leslie, Senior Economist at the Resolution Foundation, said: “While the new ONS figures confirm that the average inflation rates experienced by different income groups are currently similar, they also highlight again how low income families experience inflation in a different way. … Continued

The UK’s pivot towards closer trade ties with the Indo-Pacific region, and particularly its trade agreement with India, could deliver big economic benefits eventually comparable in scale to the now defunct US trade deal, but it also carries far more uncertainty and risk, according to new Resolution Foundation research published today (Wednesday). A presage to … Continued

Commenting on the latest ONS public sector finances data for December 2021, James Smith, Research Director at the Resolution Foundation, said: “As we await further evidence of the impact of Omicron on economic activity, today’s figures suggest that the latest wave has not had a huge effect on the public finances so far, with borrowing in December broadly in … Continued

Inflation reached its highest level in 30 years, and Britain’s cost of living squeeze is likely to continue to tighten until next Spring when energy bills jump, the Resolution Foundation said today (Wednesday) in response to the latest ONS prices data. Inflation hit 4.8 per cent (CPIH) / 5.4 per cent (CPI) in December, with … Continued

The evolution of Britain’s welfare state since its post-war creation leaves it providing a weak safety net that sees far too many people fall into poverty, and little insurance for those whose jobs are threatened by economic change, according to major new research published today (Wednesday) by the Resolution Foundation. Social Insecurity – the latest … Continued

Real wages officially began to fall in November, and the current period of shrinking pay packets is likely to get worse before it starts to ease in the second half of 2022, the Resolution Foundation said today (Tuesday) in response to the latest ONS labour market statistics. Real regular average weekly earnings wages fell by … Continued

The number of households suffering from ‘fuel stress’ – spending at least 10 per cent of their family budgets on energy bills – is set to treble overnight to 6.3 million households when the new energy price cap comes into effect on April 1, according to new research published today (Monday) by the Resolution Foundation. … Continued

Decades of declining change in the UK labour market has reduced the risk of damaging job losses, but also limited opportunities for pay-enhancing job moves, according to new research published today (Thursday) by the Resolution Foundation for The Economy 2030 Inquiry. Changing jobs? – co-written by the Resolution Foundation and the Centre for Economic Performance … Continued

2022 is set to the ‘year of the squeeze’, with real wages set to be no higher next Christmas than today, and families face a typical income hit of around £1,200 a year from April as a result of tax rises and soaring energy bills, according to new Resolution Foundation research published today (Wednesday). The Foundation’s latest … Continued

The Covid economic crisis risks worsening social mobility in Britain over the coming decade, as young people from less affluent backgrounds were more than twice as likely to have left work during the first 12 months of the pandemic than those from richer households, and face wage scarring as a result, according to new research … Continued

4.75 million families living in social housing in England are facing rent rises of up to 4.1 per cent next April – equivalent to an average £202 extra per year – the biggest nominal increase in a decade, according to Resolution Foundation research published today (Wednesday). The latest Housing Outlook examines how the rise in … Continued

The Chancellor’s £1 billion support package announced today (Tuesday) rightly provides targeted support to firms affected by the economic hit from Omicron, but does nothing to help the many thousands of workers who will also be affected, and suffer a huge income hit over Christmas and into next year as a result, the Resolution Foundation … Continued

Jack Leslie, Senior Economist at the Resolution Foundation, said: “While the timing of the Bank’s decision to raise interest rates is odd given the economic damage currently being caused by Omicron, the fact is that it is unlikely to make much difference to either inflation or household budgets. The real action is with the Treasury … Continued

A sharp rise in inflation last month – with CPIH inflation rising from 3.8 To 4.6 per cent, and CPI inflation rising from 4.2 to 5.1 per cent – tightened the squeeze on living standards across Britain, amid widespread uncertainty as to how large and long-lasting it will be, the Resolution Foundation said today in … Continued

The UK has entered the tough new Omicron phase of the Covid crisis with a healthy rather than overheating labour market, but with shrinking real pay packets, the Resolution Foundation said today (Thursday) in response to the latest ONS labour market statistics. The labour market experienced a brief, and healthy, period of normality during October … Continued

Inflation-busting house price growth over the past 20 years has delivered an unearned, unequal and untaxed £3 trillion capital gains windfall in Britain, with those aged 60 and over the biggest winners from this one-off ‘property lottery’, according to new Resolution Foundation research published today (Thursday). The report Home county – in partnership with abrdn … Continued

The pandemic has not led to mass unemployment as many feared, but has instead driven wider shifts that have increased employment among younger women, but pushed many men and older workers out of the labour market altogether, according to new research published today (Tuesday). Begin again? – the eighth report for The Economy 2030 Inquiry, … Continued

The rate of inflation has increased at its fastest rate over the past year since at least 1989, a shift that means real wages are already falling and are likely to continue to do so for the next six months, the Resolution Foundation said today (Wednesday) in response to the ONS inflation data. CPI inflation … Continued