ISA ISA Baby

Assessing the Government’s policies to encourage household saving

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The cost of living crisis highlights the long-standing issue of there being too many UK families with too little in savings. This is not a reflection of policy neglect: there have been many schemes over recent decades to encourage families to save more, covering both measures which cut taxes on savings returns and those which … Continued

Help today, squeeze tomorrow

Putting the 2022 Autumn Statement in context

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This report presents Resolution Foundation’s analysis of the 2022 Autumn Statement. In the face of grim economic and fiscal forecasts, Jeremy Hunt announced energy support today but tougher times tomorrow, with stealth tax rises for the middle and top of the income distribution followed by spending cuts after the next election.

An intergenerational audit for the UK

2022

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Our fourth Intergenerational Audit – part of the ESRC-funded Connecting Generations partnership – provides an analysis of economic living standards across generations in Britain. In so doing, it analyses the latest data across four domains:  Household incomes and costs;  Jobs, skills and pay;  Wealth and assets; and  Housing costs and security.  In each of these domains, … Continued

Mind the (credibility) gap

Autumn Statement preview

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In our Autumn-Statement preview slidepack, we present new analysis that explores the economic outlook ahead of the Autumn Statement on 17 November, and the critical decisions that the new Prime Minister and Chancellor must make. With the latest political turmoil triggered by attempts to completely rewrite economic policy, Rishi Sunak and Jeremy Hunt are under … Continued

Cutting tax cuts

Jeremy Hunt rewrites Government’s economic policy

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The new Chancellor has rewritten UK economic policy in order to reduce the pressure on the Bank of England to raise interest rates and the Treasury to deliver spending cuts. He has now reversed 60 per cent of the tax cuts announced less than four weeks ago and committing to scale back support for energy … Continued

The Long Squeeze

Benefit uprating policy for April 2023

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To offset the impact of tax cuts on the public finances, the Government is considering how it might cut spending. One option that has been discussed is the possibility of raising some benefits in line with earnings rather than inflation next April. This paper explores what this might entail, the potential savings and impacts, and … Continued

Cover for mini budget analysis, Blowing the Budget

Blowing the budget

Assessing the implications of the September 2022 fiscal statement

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The Chancellor decided to blow the budget in his first fiscal statement, bringing forward a £45 billion package of tax cuts, the biggest for 50 years. In this briefing note, we show that today’s Government is no longer fiscally conservative nor courting the Red Wall. Instead, debt is on course to rise in each and every year of the forecast period, and the focus has shifted to the South of England, where the beneficiaries of these tax cuts are more likely to be living.

A blank cheque

An analysis of the new cap on energy prices

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Liz Truss’s first major act as Prime Minister was to set out a huge energy support package to reduce the scale of the living standards’ catastrophe this winter, with the Energy Price Guarantee (EPG) as its highlight. The EPG will mean that annual energy prices for the typical household are capped at £2,500 for two … Continued

In at the deep end

The living standards crisis facing the new Prime Minister

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This paper sets out projections for household living standards through to 2026-27. With the UK facing the largest two-year real income fall in at least a century, these forecasts make it clear that a big policy response will be needed from the new government.

Economy and public finances
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Tax
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Political parties and elections

Talking tax

What’s been said and what’s gone unsaid in the Conservative leadership election?

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Elections are rarely entirely about a single issue, but there are exceptions. Brexit in the 2019 general election stands out, and today tax cuts totally dominate the 2022 Conservative leadership election. Judging by last night’s TV debate, the contest is staying that way, with little discussion of the huge questions facing the country, from the … Continued

Crunch time

Bank of England raises rates again and signals cost of living crisis is set to deliver a £1,200 hit to incomes

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Today the Bank of England’s Monetary Policy Committee raised rates at a fourth successive meeting – a first in the 25 years since it was granted independence – to 1 per cent, a level not seen since the financial crisis. The direct impact of this change in rates on households will be small in the … Continued

Happy new tax year?

National Insurance and Income Tax changes in 2022

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The start of the new tax year brings with it one of Rishi Sunak’s major tax reforms: the rise in National Insurance, announced last September and linked to additional support for the NHS and social care. This spotlight explores what this rate rise – together with freezes in the Income Tax personal allowance, the newly-announced … Continued

Stressed out

April brings an acute squeeze on UK living standards as higher energy bills lead to widespread fuel stress

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April 2022 will see the UK’s cost of living crisis intensify as energy prices jump by more than half overnight, pushing 5 million English households into fuel stress, even accounting for support measures recently announced by the Chancellor. This is not the end, though. Against a backdrop of the highest inflation rate in 40 years … Continued

Briefing note cover - living wage uk

Inflation Nation

Putting Spring Statement 2022 in context

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This briefing note provides an assessment of the measures announced in the March 2022 Spring Statement.  The Chancellor approached this with the highest inflation in 40 years and the worst income squeeze on record lying ahead of us.  Against that backdrop, and with plenty of fiscal ammunition (thanks to the Office for Budget Responsibility’s (OBR’s) … Continued

Softening the blow

Looking ahead to Spring Statement 2022

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Faced with the highest inflation in at least three decades, the upcoming Spring Statement is bound to provide more support for households. But the precise set of choices – which could include support via Fuel Duty, benefits or National Insurance – will play an important role in determining the force of the cost of living … Continued

Catch 2022

Spring Statement 2022 preview

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Ahead of the 2022 Spring Statement, we preview the economic and fiscal outlook and discuss the key decisions that the Chancellor will face. The Chancellor comes into the Spring Statement with good news since the Autumn. The strongest peacetime growth in a century means the economy is around half a per cent larger, and around … Continued

Economy 2030

Shrinking footprints

The impacts of the net zero transition on households and consumption

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The 2020s are set to bring a step change in climate policy, with efforts to decarbonise the UK economy beginning to impact on household consumption to a greater extent than before. Different households will be exposed to these changes in different ways, but they will come in two flavours: upfront investment now to deliver savings … Continued

The price is right?

The April 2022 energy price rise and the Government’s response

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The Government has opted for universalism and minimising the hit to the public purse in its response to the energy price rise yesterday. The announced measures take the sting out of Ofgem’s £693 rise in the energy price cap in April with a broad-based package of support. All households will get a £200 discount on … Continued

Labour Market Outlook Q4 2021

Wages and the cost of living in 2022

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The final three months of 2021 have been a mixed bag for the pandemic and the labour market. At the end of September, the Coronavirus Job Retention Scheme (JRS) came to an end after 18 months – and the feared rise in unemployment does not seem to have come to pass. But the emergence of … Continued

Home county

Options for taxing main residence capital gains

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Over the past 30 years, the total value of household wealth in the UK has risen from three times national income to well over seven times. Inflation-beating house price growth and high ownership rates have combined to add around £3 trillion of housing wealth from main residences to that total – accounting for around a … Continued

Briefing note cover - living wage uk

Hope to buy

The decline of youth home ownership

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This briefing note explores how the home ownership fortunes of those aged 25 to 34 have changed over time. Owning one’s home is an enduring preference for the majority of families in the UK, but today’s young people face a more serious set of hurdles to overcome than previous generations if they want to turn … Continued

Are you better off today?

Real income growth under different governments since 1955

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In the 1980 presidential contest between the incumbent Jimmy Carter and Ronald Reagan, the latter asked voters “Are you better off today than you were four years ago?”. Although far from the only question that voters do or should ask, it is a reasonable question. In the UK, since 1955, real household disposable income per … Continued

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