Analysis and action on living standards
The UK has endured two decades of very sluggish progress on living standards, with a special squeeze on those we describe as Unsung Britain – working-age households, with incomes below the median. This briefing considers the components of income in the round over the last 30 years.
Britain, today, is a more plural country than ever before. But although recent polling has showed that the country has become more accepting over time, there is still ample evidence that significant ethnic inequalities exist. This note explores an ethnic inequality that has been largely under-researched to date: housing affordability.
The Resolution Foundation is an independent think-tank focused on improving living standards for those on low-to-middle incomes. We work across a wide range of economic and social policy areas, combining our core purpose with a commitment to analytical rigour.
A long-standing finding is that British households on low-to-middle incomes are poorer than their counterparts in many advanced economies. This result comes from comparing the incomes of this group to price levels in their respective countries. But these price measures typically reflect the spending of all families, not just those on low-to-middle incomes. In this Spotlight, we correct for this by adjusting for the spending habits of poorer households.
Right to Buy has been a cornerstone of housing policy in England since its introduction in 1980, and has enabled over two million council tenants to purchase their homes at a substantial discount. The scheme has boosted home ownership and democratised wealth, especially for early buyers, but the long-term failure to replace the homes sold has significantly depleted the social housing stock, driving up the housing benefit bill as a result.
The Resolution Foundation calculates the real Living Wage – a voluntary hourly pay rate that is based on what families need to get by. The current national rate is:
Resolution Ventures exists to back innovative start-ups seeking to change the world of work for the better and early-stage ventures seeking to improve the prospects of low-to-middle income Britain.
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Evaluating the economic importance of intergenerational exchanges including housing assistance, childcare and other unpaid care, and financial aid.
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