Household debt· Wealth & assets An outstanding balance? Inequalities in the use – and burden – of consumer credit in the UK 15 January 2020 by Jubair Ahmed and Kathleen Henehan As the 2010s drew to a close, both policymakers and the press raised concerns about rising levels of UK household debt, with some warning it could soon bring about the next recession. Although household debt levels remain high in absolute terms, when compared against total household income they are substantially below levels reached during the … Continued READ MORE
Incomes· Pensions & savings· Inequality & poverty· Wealth & assets· Political parties and elections Who owns all the pie? The size and distribution of Britain’s £14.6 trillion of wealth 5 December 2019 by George Bangham and Jack Leslie While incomes have stagnated over the past decade, our national wealth has continued to boom. Data released today put UK households collective wealth at £14.6 trillion. But that total is far from equally distributed: the richest 10 per cent of households own almost half of the nation’s wealth having benefitted most from the recent wealth … Continued READ MORE
Wealth & assets· Tax· Political parties and elections The huge Brexit Party tax cut for rich remain areas 16 September 2019 by Adam Corlett and Torsten Bell In this paper we examine the policy of abolishing inheritance tax, the new top priority announced by the Brexit Party. We find that the proposal would amount to an expensive giveaway to a tiny number of very wealthy households, largely living in the richest parts of the country and concentrated in remain voting constituencies. READ MORE
Inequality & poverty· Wealth & assets· Scotland Taking stock Report for the Scottish Poverty and Inequality Commission 30 July 2019 by George Bangham and Lindsay Judge There has been a growing appreciation in recent years that living standards are determined not just by income (the flow of money into a household) but also by wealth (the stock of assets a household owns). Wealth can take various forms: it can be held in financial instruments (for example, a savings account or as … Continued READ MORE
Wealth & assets· Housing· Intergenerational Centre Game of Homes: The rise of multiple property ownership in Great Britain 15 June 2019 by George Bangham Additional property wealth is a big deal in Britain today. One-in-nine adults own some, and its combined value is almost £1 trillion. By value, it makes up one-sixth of all property wealth. READ MORE
Wealth & assets· Social mobility· Housing· Intergenerational Centre House of the rising son (or daughter): the impact of parental wealth on their children’s homeownership 4 December 2018 by Stephen Clarke and John Wood The rise of the so-called Bank of Mum and Dad (BOMAD) is much-discussed but until now there has been little analysis of the strength of the relationship between parental support and people’s chances of becoming homeowners. This paper fills this gap: we analyse the association between the property wealth held by people’s parents and their own, stripping out the impact that other factors (earnings, education, etc) have on homeownership. READ MORE
Wealth & assets· Scotland The £1 trillion pie: how wealth is shared across Scotland 22 June 2018 by Conor D’Arcy and Torsten Bell The wealth of Scottish households has grown rapidly in recent years and now exceeds £1 trillion for the first time. But from a living standards perspective, what matters is how that wealth – including property, pensions and savings – is shared. The report explores some of the key inequalities when it comes to wealth in … Continued READ MORE
Living standards· Wealth & assets· Intergenerational Centre The new wealth of our nation: the case for a citizen’s inheritance 8 May 2018 by George Bangham This paper makes the case for a citizen’s inheritance – a £10,000 lump-sum payment made available to every young person when they reach the age of 25 – to address some of the key risks they and as part of a policy programme to renew the intergenerational contract that underpins society READ MORE
Wealth & assets· Tax· Intergenerational Centre Passing on: options for reforming inheritance taxation 2 May 2018 by Adam Corlett Inheritances are growing rapidly in importance at the same time as fiscal pressures mount. But the current inheritance tax system manages to raise relatively little while also being especially unpopular. This paper proposes a Lifetime Receipts Tax that would address Inheritance Tax’s problems while also raising more revenue and encouraging individuals to spread their wealth more widely. READ MORE
Household debt· Monetary policy· Wealth & assets· Housing An unhealthy interest? Debt distress and the consequences of raising rates 12 February 2018 by Matthew Whittaker Consumer borrowing has been surging over recent months, raising fears that we are storing up more debt-fuelled problems for tomorrow. This note digs into the numbers and focuses on who is taking out all the credit. We consider also how the profile of the UK’s household debt will stand up to increasing interest rates in the coming years. READ MORE
Living standards· Pensions & savings· Wealth & assets· Intergenerational Centre A welfare generation: lifetime welfare transfers between generations 5 February 2018 by George Bangham and David Finch and Toby Phillips This paper updates John Hills’ seminal research on life-cycle welfare transfers between generations. It estimates the extent to which past and future cohorts contribute to the welfare state via taxation and withdraw from its core pillars – education, health and social security – over the course of their lifetimes. READ MORE
Wealth & assets· Tax· Intergenerational Centre The million dollar be-question: inheritances, gifts, and their implications for generational living standards 30 December 2017 by Laura Gardiner This report assesses the role that intergenerational family transfers – inheritances and gifts – play in Britain. It provides a detailed assessment of past gifts and inheritances, and estimates the timing and distribution of future intergenerational transfers of property wealth to the millennial generation. READ MORE
Pensions & savings· Wealth & assets· Housing· Intergenerational Centre The generation of wealth: asset accumulation across and within cohorts 20 June 2017 by Conor D’Arcy and Laura Gardiner Family wealth in 21st Century Britain is huge and growing, rising from £9.9 trillion before the financial crisis to over £11 trillion in the most recent data – more than six times our national income. Significant increases have come from house price rises in the 1990s and 2000s, followed by major growth in private pension wealth more … Continued READ MORE
Wealth & assets Hangover Cure: Dealing with the household debt overhang as interest rates rise 24 July 2014 by Matthew Whittaker and Katie Blacklock The UK is entering a period in which interest rates are expected to start rising again – with the first moves potentially coming later this year – having insufficiently dealt with the debt overhang. This leaves the UK economy vulnerable to even modest increases in interest rates. Deconstructing the debt overhang will not be costless, but it is in everyone’s interests – borrowers, lenders, government and taxpayers alike – to adopt a pro-active measured approach rather than simply allowing it to collapse. We favour an orderly and managed dismantling of the debt overhang. This report sets out a series of recommendations for lenders, borrowers and policy-makers to make that happen. READ MORE
Household debt· Wealth & assets· Housing Mortgaged Future: Modelling household debt affordability and access to re-financing as interest rates rise 20 May 2014 by Matthew Whittaker One in ten of today’s mortgagors risk being imprisoned by borrowing deals which are likely to make their repayments unaffordable as interest rates rise over the next four years. Around 770,000 households are both at risk of being ‘mortgage prisoners’ due to a limited ability to switch to better mortgage deals and therefore insulate themselves against future rate rises, and at risk of being ‘highly geared’ where monthly mortgage repayments are eating up at least one third of their disposable income by 2018. READ MORE
Household debt· Wealth & assets Closer to the edge? Debt repayments in 2018 under different household income and borrowing cost scenarios 29 December 2013 by Matthew Whittaker Britain faces the mounting prospect of a household debt crisis as analysis from the Resolution Foundation suggests that a least a million British families, and possibly as many as 2 million, could be spending more than half their disposable income on repayments by 2018 The study uses the latest five-year growth projections from the Office … Continued READ MORE
Household debt· Wealth & assets· Housing Closer to the Edge? Prospects for household debt repayments as interest rates rise 11 July 2013 by Matthew Whittaker The number of families in Britain with perilous levels of debt repayments could more than double to 1.2 million if interest rates rise faster than expected in the next four years and household income growth is weak and uneven. The figures suggest that the ongoing squeeze on households could leave Britain seriously exposed if interest … Continued READ MORE
Household debt· Wealth & assets On borrowed time? Dealing with household debt in an era of stagnant incomes 23 December 2012 by Matthew Whittaker On borrowed time? examines how and why household debt grew in the pre-crisis years, before turning to study the current scale and distribution of exposure to debt across households. Finally, the report looks at the link between household debt and prospects for economic growth, setting out a range of broad policy considerations that will frame our … Continued READ MORE
Household debt· Wealth & assets Inequality, debt and growth 14 May 2012 by Salvatore Morelli and Paolo Lucchino Inequality, debt and growth shows that low to middle income households were reliant on borrowing to fund much of their spending for more than a decade before the financial crisis. This report reveals the full extent of the increase in borrowing and deterioration in household savings rates in the run up to the 2008/09 crisis, … Continued READ MORE
Social care· Wealth & assets· Housing Home Equity: accumulation and decumulation through the life cycle 1 March 2010 by Peter Williams This report was commissioned by the Resolution Foundation to inform our work on long-term care funding reform. Many low earners lose out in the current care and support system and find themselves in a funding gap; too rich to qualify for state support, having over the threshold of £23,000 of equity in their house, and … Continued READ MORE
Wealth & assets· Financial inclusion Financial inclusion and financial capability explained 1 August 2009 by Helen Aynsley Financial services play a key role in most people’s lives. This makes the ability to make sound financial decisions an essential life skill, one that enables people to manage their day-to-day expenditure, cope with unforeseen emergencies and plan for their retirement. Such skills are becoming even more important as the financial services market becomes more … Continued READ MORE
Wealth & assets· Financial inclusion Financial health 29 July 2009 This briefing outlines the Foundation’s recent research into the financial health of low earners and sets out our current work program. The Resolution Foundation has undertaken research into how low earners access financial services, focusing in particular on how to meet their financial advice needs. We produced a proposal for a national generic financial advice … Continued READ MORE
Wealth & assets· Financial inclusion Submission: Resolution Foundation Response to HM Treasury consultation on Reforming Financial Markets 1 July 2009 The Foundation welcomes the opportunity to respond to the Reforming Financial Markets White Paper. To reflect the focus of our work, this memorandum comments on a number of issues in chapter 8 – Supporting and Protecting Consumers – and specifically addresses consultation questions 15 to 21. READ MORE
Pensions & savings· Wealth & assets Parliamentary Briefing: Second Reading of the Pensions Bill 2008, House of Commons 1 January 2008 by Patrick Stevens This briefing sets out the evidence presented by the Resolution Foundation to the House of Commons in the Second Reading of the Pensions Bill. READ MORE
Wealth & assets· Financial inclusion Submission: Foundation response to Thoresen Review Interim Report 17 December 2007 by Patrick Stevens The Resolution Foundation welcomes the Thoresen Review of Generic Financial Advice’s (GFA) Interim Report. In particular it welcomes the Review’s intentions to carry out out a local level analysis of existing advice provision. This is important to fully harness the potential of existing local trust relationships, brands and market coverage of hard to reach groups. READ MORE
