A combination of rising inflation and pay restraint means that average real pay is now falling in the public sector, and is expected to continue falling over the next three years, according to Resolution Foundation’s latest Earning Outlook published today (Wednesday). Forecasts released by the OBR last week showed that overall pay growth could turn … Continued

Britain is on course for an unprecedented 15 years of spending cuts and lost pay growth, according to the Resolution Foundation’s overnight analysis of Budget 2017. The report finds that despite the Budget day focus on short term forecast improvements, the date for achieving an overall budget surplus has been pushed back until 2025. Average … Continued

UK economy forecast to be smaller than previously expected while 80 per cent of the Autumn Statement borrowing downgrade remains Despite short term improvements to both growth and borrowing, the Chancellor has been given weaker than expected economic forecasts by the Office for Budget Responsibility, the Resolution Foundation said today in response to the 2017 … Continued

National Insurance reforms benefit low-paid hairdressers but self-employed management consultants face bigger bills The Chancellor is right to begin tackling the unfair and expensive tax advantages enjoyed by self-employed workers by increasing the rate of National Insurance contributions (NICs) they make, the Resolution Foundation said in response to the Budget announcement today. This change should … Continued

But slowdown in last six months suggests firms’ appetite for ZHCs may be waning The number of people on a zero-hours contract (ZHC) hit a record high of 905,000 in the last three months of 2016, according to new analysis of official data published today (Friday) by the Resolution Foundation. The analysis finds that the … Continued

Healthier-than-expected tax receipts, the absence of any immediate post-referendum slowdown in growth and measurement changes are set to lower Budget borrowing forecasts by £29bn between 2016-17 and 2020-21, according to the Resolution Foundation’s pre-Budget outlook published today (Tuesday). Economy Drive, which brings together economic data published since last November’s Autumn Statement to assess the kind … Continued

  A slowdown in job moving, employers no longer rewarding staff for long service, and a shift towards work in low-paying sectors have meant that millennials have had a slower and lower-paid start to their careers than the generation before them, according to the new research published today (Thursday) by the Resolution Foundation. Study, work, … Continued

  The recent rise in self-employment is being led by workers in relatively ‘privileged’ high-skilled, higher-paying sectors such as advertising and banking. Their considerable tax advantages over employees, rather than new technology and the gig economy, are central to the rapid growth in self-employment, according to new analysis published today (Monday) by the Resolution Foundation. … Continued

  Employment has inched up to a new record high but rising prices have reduced pay growth to its lowest level in almost two years, the Resolution Foundation said today in response to the latest ONS figures. Employment reached a new record high of 74.6 per cent and there was a welcome fall in working-age … Continued

  The doubling of inflation in just four months shows that rising prices will be the big living standards story of 2017, the Resolution Foundation said today in response to the latest inflation figures. CPI inflation increased from 0.9% in October 2016 to 1.8% in January 2017 – its highest level since June 2014. CPIH, … Continued

Strong recent growth in typical pensioner incomes has been driven by new cohorts of pensioners who are more likely than their predecessors to still be in work, own a home and have access to generous private pension pots. This is according to new analysis published today (Monday) by the Resolution Foundation for the Intergenerational Commission. … Continued

  Millennial men are falling behind the generation before them in their early careers, reflecting a shift towards young men doing low paid work traditionally carried out by women, Resolution Foundation Director Torsten Bell will say in the annual Grigor McClelland lecture to Manchester Business School later today (Thursday). The lecture, on 21st century inequality, … Continued

Squeeze on poorer households, rather than 80s-style boom for the rich, driving 21st Century inequality Britain is on course for a major living standards slowdown, with typical households seeing almost no income growth over the remainder of this Parliament, according to the Resolution Foundation’s annual audit of living standards published today (Wednesday). A particularly tight … Continued

  The UK’s mini living standards boom of recent years has ended with income growth for typical working age households more than halving to just 0.5 per cent this year, the Resolution Foundation’s annual living standards audit will warn later this week. The audit – a detailed analysis of the state of living standards across … Continued

  Rising rents and house prices are swallowing up the living standards gains from the West of England city region’s impressive economic performance over the last decade, according to a new report published today (Thursday) by the Resolution Foundation. A Western Union – published ahead of the West of England’s first ever Metro Mayoral election … Continued

The UK jobs market is in rude health but rising inflation is set to eat into pay packets this year, the Resolution Foundation said today (Wednesday) in response to the latest labour market figures. The headline employment rate returned to its record high of 74.5 per cent in the three months to November, underpinned by … Continued

Responding to the latest inflation figures for December, which showed that CPI increased to 1.6 per cent (up from 1.2 per cent in November, and 0.6 per cent in July), Conor D’Arcy, Policy Analyst at the Resolution Foundation, said: “Today’s sharper than expected rise in inflation shows that the ultra-low price rises that consumers have … Continued

Cost of Britain’s ageing society by 2060 will increase by equivalent of a 4p income tax rise without further action The UK’s non-working population will start to grow faster than its workforce for the first time outside of economic downturns since the early 80s this year, according to a new report published today (Tuesday) by … Continued

  RF warns that new living standards divides between generations are growing Inequality fell sharply last year (2015-16) due to strong income growth for retired households and the poorest 40 per cent, but growth among middle income working age households remains weak, the Resolution Foundation said in response to new ONS figures today (Tuesday). Household … Continued

  The gender pay gap for millennials in their 20s has halved in a generation to just 5 per cent, but much of that progress looks set to be undone with early signs showing that the gender pay gap continues to escalate as women enter their 30s and 40s. This suggests that millennial women will … Continued

  Workers on zero-hours contracts (ZHCs) face a ‘precarious pay penalty’ of almost seven per cent  – or £1,000 a year for a typical worker – compared to similar workers doing similar jobs, according to new analysis published today (Friday) by the Resolution Foundation. The Foundation’s analysis is the first to pinpoint a specific ‘precarious … Continued

Merseyside experienced the fastest growth in economic output (GVA per head) of any major city in 2015, but all cities bar London are still worse off than they were before the crisis – highlighting the challenge facing Britain’s new Metro Mayors, the Resolution Foundation said today (Thursday) in response to the latest ONS regional GVA … Continued

Employment and pay growth have been flat for the last six months, but change is coming next year as rising prices start to eat into pay packets, the Resolution Foundation said today (Wednesday) in response to the latest ONS labour market figures. The headline employment rate has now plateaued around record highs reached in mid-2016, … Continued

A poor employment performance stretching back decades is turning the West Midlands city region into Britain’s biggest employment blackspot, and played a key role in the region’s vote to leave the EU, according to a new report published today (Monday) by the independent think-tank the Resolution Foundation. As the area prepares to elect its first … Continued

The forgotten face of non-traditional employment hit by average pay penalty of £430 The number of agency workers has grown by 30 per cent since 2011, and now stands at 865,000, a new report by the independent think-tank Resolution Foundation reveals today (Monday) as it launches a major 18-month investigation into agency work. The report … Continued