Work· Generations Millennials facing ‘generational pay penalty’ as their earnings fall £8,000 behind during their 20s 18 July 2016 Fresh evidence of the growing intergenerational inequality that new Prime Minister has warned of Britain’s longstanding promise of ‘generational pay progress’ could turn into a ‘pay penalty’ for millennials, who are at risk of being the first generation to earn less than their predecessors over the course of their working lives, the Resolution Foundation says … Continued READ MORE
Housing· Generations Millennials have paid £44,000 more rent than the baby boomers by the time they hit 30 16 July 2016 Delivering the Prime Minister’s pledge to deal with ‘housing deficit’ is central to boosting younger generations’ living standards The combination of falling home ownership and rising costs in the private rented sector mean that today’s millennial generation will have spent £44,000 more on rent by the time they reach 30 compared to the baby boomers, … Continued READ MORE
Work Jobs protected as prices and profits take the early squeeze from National Living Wage 11 July 2016 Post-Brexit uncertainty could reduce real-terms value of NLW by up to 40p an hour in 2020 Employers have responded to the National Living Wage (NLW) by raising prices or reducing profits rather than cutting jobs, but more will have to look at productivity-enhancing measures in the coming years, according to a new report published today … Continued READ MORE
Work Brexit vote requires migrant-reliant firms to rethink business models 4 July 2016 The decision to leave the European Union may fundamentally change the business models of firms reliant on migrant labour if promises to end freedom of movement are delivered. Some sectors have the potential to respond with greater automation while others will require a smart immigration policy from government to prevent damaging staff shortages. This … Continued READ MORE
Social security· Generations Brexit defeat for millennials risks being compounded by huge tax and benefit transfer from young to old 3 July 2016 RF says repairing generational divide a crucial task for new PM as it announces new Intergenerational Commission The next Prime Minister must repair the stark intergenerational divide exposed by the EU referendum result, but the task will be made harder by tax and benefit plans they will inherit that are set to redistribute billions from … Continued READ MORE
Public finances Chancellor right to abandon Budget surplus target in the face of any post-Brexit deterioration in the economy 1 July 2016 Responding to the Chancellor’s announcement today that he has abandoned his Budget surplus target for 2020, Matt Whittaker, Chief Economist at the Resolution Foundation, said: “It’s welcome – though not surprising – that the Chancellor has explicitly acknowledged that it would be wrong to pursue a surplus in the face of any post-Brexit deterioration in … Continued READ MORE
Incomes Welcome income growth ahead of Brexit uncertainty – but child poverty rises for the first time since 2006 28 June 2016 Typical incomes have finally returned to pre-crisis levels, but the number of children living in poverty has risen for the first time in a decade, the Resolution Foundation said today (Tuesday) in response to the latest Households Below Average Income figures (HBAI). The Foundation notes that typical household incomes reached £473 a week in 2014-15 – … Continued READ MORE
Incomes Half of working Britain has seen no rise in living standards since early 2000s 28 June 2016 Squeeze on earnings and rising housing costs have hit family budgets, fuelling disillusionment at economic and political status quo Weak income growth and rising housing costs have effectively wiped out any gains for low and middle income working age households since the early 2000s, providing the backdrop to disillusionment with the political and economic status … Continued READ MORE
Work Welcome strengthening of pay growth following introduction of National Living Wage 15 June 2016 Real wage growth strengthened in recent months, driven in part by the welcome pay boost delivered by the new National Living Wage, the Resolution Foundation said today (Wednesday) in response to the labour market statistics. Real earnings growth increased to 1.9 per cent in the three months to April, bucking the recent trend of … Continued READ MORE
Work Disabled people face twice the ‘time out’ penalty when trying to re-enter work 7 June 2016 Radical new approach needed to prevent those with disabilities leaving the workforce if government is to have any hope of meeting its disability employment target Disabled people who have been out of work for over a year see their odds of returning to employment reduced at twice the rate of non-disabled people, a new report … Continued READ MORE
Social security Landmark day for Universal Credit as full service is rolled out Jobcentres today 25 May 2016 Resolution Foundation says that major reforms are needed to make a success of the flagship welfare reform programme With the roll-out of the full Universal Credit service finally starting today (Wednesday) – it is being rolled out to five jobcentres including Bath and Newcastle Cathedral Square, with more to follow in the coming months … Continued READ MORE
Work Welcome jobs boost, but signs that the post-crisis surge is reaching its limits 18 May 2016 The proportion of people in work in the UK recorded a modest uptick in the first quarter of 2016, confounding the view that uncertainty in the run-up to the EU referendum would hamper jobs growth, according to the Resolution Foundation’s analysis of today’s (Wednesday) ONS labour market statistics. The employment rate increased to 74.2 per … Continued READ MORE
Housing House prices have risen over five times faster than wages in the last five years 17 May 2016 Average house prices across the UK have increased 5.1 times faster than average weekly earnings over the last five years, the Resolution Foundation said today (Tuesday) in response to the latest ONS House Price Index (HPI). Resolution Foundation analysis of HPI data shows that house prices have increased by 36 per cent since April 2011, … Continued READ MORE
Work Chronic lack of clear career routes for non-graduate workers stranding many in low pay 11 May 2016 Upcoming Apprenticeship Levy and Skills White Paper offer once-in-a-generation chance to help ‘forgotten 40 per cent’ Poor career routes are holding back the ‘forgotten forty per cent’ of the workforce – mid-skilled workers with at least five A*-C GCSEs but without a university education. This is according to a new report published today (Wednesday) by … Continued READ MORE
Work Step up in HMRC enforcement needed to stop employers dodging the National Living Wage 11 May 2016 Welcoming the National Audit Office (NAO) report published today (Wednesday) into non-compliance with the National Minimum Wage, Laura Gardiner Senior Policy Analyst at the Resolution Foundation said: “Two million people now earn the legal minimum following the introduction of the National Living Wage. It’s hugely concerning that we don’t know how many people are … Continued READ MORE
Social security New Work and Pensions Secretary must reclaim Universal Credit from the Treasury 2 May 2016 Resolution Foundation calls for major reforms as full roll-out of Universal Credit begins this month A few weeks into his role, the new Work and Pensions Secretary has been urged to reclaim Universal Credit (UC) from the Treasury. The advice is contained in a major new report published today (Tuesday) by the Resolution Foundation … Continued READ MORE
Housing Rising housing costs since the 1990s equivalent to 10p increase in basic rate of tax for a typical family 26 April 2016 Post-crash fall in housing costs softened living standards squeeze but recent increases risks holding back the recovery The rising share of income spent on housing over the last two decades is equivalent to a 10p increase in the basic rate of tax for a typical family, according to new Resolution Foundation analysis published today (Tuesday). … Continued READ MORE
Work Employment at record levels but growth has stalled 20 April 2016 Fresh impetus needed to make further progress towards full employment The UK employment rate remains at a record high but has plateaued in the last five months, the Resolution Foundation said today in response to the latest ONS labour market statistics. The headline employment rate stayed at 74.1 per cent in the three months to … Continued READ MORE
Social security Richest to lose ten times as much as poorest half of households from Scottish council tax reforms 8 April 2016 Resolution Foundation welcomes battle over progressive property taxation in run up to Scottish elections The average cash losses from the Scottish government’s proposed council tax reforms will be over ten times greater for the richest tenth of households compared to the poorest half, according to a new report published today (Friday) by the Resolution Foundation. … Continued READ MORE
Housing Tipping point in housing market as people in their late 20s now more likely to rent privately than own a home 6 April 2016 New figures published today (Wednesday) by the ONS in its Economic Review show that people aged 25-29 are now more likely to rent privately (43.3 per cent) than own a home with mortgage (39 per cent). This tipping point in home ownership across the UK marks a dramatic change from just 15 years ago, … Continued READ MORE
Work One in three workers set for a pay rise in National Living Wage hotspots across Britain 30 March 2016 Workers in Torridge, Rossendale, Woking and Castle Point most likely to benefit Up to a third of workers in some areas of Britain are set for a pay rise as a result of the introduction of the National Living Wage (NLW), the new legal wage floor of £7.20 an hour that comes into effect this Friday for … Continued READ MORE
Work Pay of lowest earners rising four times faster than an average worker’s this year 27 March 2016 National Living Wage means pay growth for lowest earners will be 50 per cent faster than average wage growth over the parliament The pay of minimum wage workers will rise four times faster than average earnings this year, according to new analysis published today (Sunday) by independent think tank the Resolution Foundation in advance of … Continued READ MORE
Social security Government right to abandon further welfare savings – but low income families still set to lose out 21 March 2016 Commenting on the announcement this afternoon by the new Secretary of State for Work and Pensions, Stephen Crabb MP, that there would be “no further plans to make welfare savings beyond the very substantial savings legislated for by parliament two weeks ago”, Torsten Bell Director of the Resolution Foundation said: “This is welcome news … Continued READ MORE
Public finances Treasury will need to make biggest ever annual borrowing reduction to meet Budget surplus target 17 March 2016 TREASURY WILL NEED TO MAKE BIGGEST EVER ANNUAL BORROWING REDUCTION TO MEET BUDGET SURPLUS TARGET The Chancellor will need to reduce borrowing by £32bn in 2019-20 – the biggest ever annual cash consolidation – in order to meet his Budget surplus target by the end of the parliament, according to a new post-Budget briefing … Continued READ MORE
Public finances Treasury chooses to accept £38bn extra borrowing in face of economic headwinds 16 March 2016 OBR gives the Chancellor a £55bn fiscal black hole, double the £27bn windfall from the Autumn Statement The weaker outlook for productivity and pay has led the OBR to give George Osborne a £55bn fiscal hole, reversing twice over the £27bn fiscal windfall it gave him in the Autumn Statement. The Chancellor has rightly chosen … Continued READ MORE
