Economy 2030· Living standards· Incomes· Prices & consumption Politicians need to talk about how we can lower bills by using less energy as a winter crisis looms France and the Netherlands have produced guidance to cut domestic energy use under respective ‘energy sobriety’ and ‘dial it down’ programmes 24 August 2022 by Jonathan Marshall The size of our energy bills is due to two things – how much energy costs, and how much of it we use. The first of these, for good reason, is front-page news at the moment. Wholesale gas prices are reaching new highs on an almost daily basis, pushing cost of heating and lighting our … Continued READ MORE
Living standards· Prices & consumption· Inequality & poverty Inflation will hit low and middle-income families hardest 23 February 2022 by Torsten Bell This year is not being kind to the reputation of Britain’s institutions. Two months in, the police are already questioning the country’s elected — and unelected — leaders. But the cost-of-living catastrophe that will dominate 2022 will turn the heat on to our economic institutions. They are unlikely to emerge unscathed. Prices rose 5.5 per … Continued READ MORE
Living standards· Prices & consumption Spiralling energy prices will turn the UK’s cost-of-living crisis into a catastrophe A £300 one-off payment to millions of low-income households is the minimum needed to mitigate rising bill 10 January 2022 by Torsten Bell A cost of living catastrophe is what British families are facing in early 2022. The government has been understandably focused on Omicron but has woken up to this crisis, and is now discussing policy action to address it. But there is no magic bullet. What’s worse, this comes on the back of a decade of … Continued READ MORE
Living standards· Prices & consumption Soaring energy bills will turn cost of living crunch into a crisis 22 September 2021 by Torsten Bell We are heading into a cost-of-living crunch this autumn, with low and middle-income Britain facing the tightest squeeze as bills rise and Universal Credit is cut. Crises often build slowly then hit fast — and that is exactly what has been happening here, as the difficulties of reopening an economy after a pandemic shutdown hit … Continued READ MORE
Covid-19· Prices & consumption· Intergenerational Centre The current consumption crisis will be important for the future jobs market recovery 16 October 2020 by Maja Gustafsson Britain’s jobs crisis is concentrated in low-paying sectors like hospitality, retail, arts and leisure that have been hardest hit by lockdown and ongoing social distancing measures. In 2019, 32 per cent of 18-29-year-old employees worked in these sectors. But those who tend to spend the greatest proportion of their disposable income on these more pleasurable … Continued READ MORE
Covid-19· Living standards· Incomes· Prices & consumption Family spending before the coronavirus crisis helps us to understand its potential impact 23 March 2020 by Fahmida Rahman Last week the Office for National Statistics (ONS) published its annual rundown of how UK households spent their money. These statistics provide the most detailed and direct insight into current living standards, and with a coronavirus-driven economic crisis in the making, they also give us a guide as to how we might expect things to … Continued READ MORE
Living standards· Prices & consumption· Brexit & trade· Tax After Brexit the UK could cut VAT on energy – but should it? 2 September 2019 by Adam Corlett During the EU referendum, one of Vote Leave’s promises was that “fuel bills will be lower for everyone”. Specifically, Boris Johnson and others argued that: “In 1993, VAT on household energy bills was imposed. This makes gas and electricity much more expensive. EU rules mean we cannot take VAT off those bills. The least wealthy … Continued READ MORE
Prices & consumption· Intergenerational Centre Life as a millennial is far less extravagant than you might think 20 June 2019 by Laura Gardiner When economists and policy makers talk about living standards they think in terms of real (equivalised) household disposable incomes (before or after housing costs). This is a good approach to take, but it’s not how most people think. A more common way is to think about how much money you have to spend on goods … Continued READ MORE
Living standards· Prices & consumption Five key takeaways on UK household spending 25 January 2019 by Laura Gardiner Yesterday the Office for National Statistics (ONS) published its annual rundown of what UK households spend their money on. Quite a bit of the ONS’s analysis focused on who spends most on takeaways. But given household consumption is perhaps the most detailed and direct window on current living standards, there’s plenty more of interest in … Continued READ MORE
Incomes· Prices & consumption Guest blog: When the ONS changes its mind, economic policy and political reputation are on the line 30 July 2018 by Dan Corry and Peter Kenway In these ‘post-expert’ times, it’s worth remembering that good policy rests on good evidence. Our fiscal and monetary institutions don’t just set policy with reference to economic theory, but in relation to what’s going on in the economy. So – as we heard earlier this week – when history gets re-written in a way that … Continued READ MORE
Living standards· Prices & consumption· Inequality & poverty· Tax No, the poorest don’t pay higher taxes than the richest 20 June 2018 by Adam Corlett We all know that parts of the tax system are very progressive – and this should be very apparent in the Autumn Statement when the Chancellor unveils perhaps £10 billion of tax rises that will target the wealthy. But wait, some say, when you factor in taxes such as VAT it’s actually poorer households that … Continued READ MORE
Living standards· Incomes· Prices & consumption Hey big spender! 18 January 2018 by Stephen Clarke Todays’ annual Family Spending release contains the usual treasure trove of information on what UK households spent their money on last year. Households spent a lot. Average weekly spending rose (after adjusting for inflation) by 4 per cent from £533 to £554 between 2015-16 and 2016-17 – the sharpest increase for well over a decade … Continued READ MORE
Living standards· Prices & consumption· Inequality & poverty· Welfare The living standards issue that’s bigger than Brexit for lower income households 9 September 2017 by Matthew Whittaker Love it or loathe it, the long shadow of Brexit is set to dominate our political weather for some considerable time to come. With good reason of course. The long-term impact remains uncertain, but we can be sure it will be significant. And in the near-term, there’s no denying that the referendum result is at … Continued READ MORE
Prices & consumption· Economy and public finances Inflation afflictions 18 July 2017 by Stephen Clarke The story of the last 12 months is that inflation has risen rapidly and eroded people’s living standards. From 0.8 per cent in June 2016 inflation is now 2.6 per cent. Despite the small welcome fall last month current projections suggest it will remain around this level for the rest of the year. The rise … Continued READ MORE
Living standards· Prices & consumption 2016 was a good year for living standards – but families didn’t splash out 16 February 2017 by Matthew Whittaker Today’s annual Family Spending release contains the usual wealth of useful information on household spending patterns. It shows that overall spending was largely unchanged in 2015-16 (at £529 a week) relative to the previous year, once inflation is accounted for. Indeed, having fallen slightly from 2006 and then increased gently after 2012, average household spending is little … Continued READ MORE
Household debt· Prices & consumption Consumer borrowing is up. But will it last, and should we be concerned? 12 January 2017 by Matthew Whittaker Consumer borrowing is increasing at its fastest rate in 11 years. As the chart below shows, outstanding debts (excluding mortgages and student loans) rose by 10.8 per cent in November 2016 – faster than any time since October 2005. This surge has inevitably prompted concerns that the UK is heading back down the path of … Continued READ MORE
Incomes· Living standards· Prices & consumption· Economy and public finances Theresa May needs to spread the jam more thickly 25 November 2016 by Matthew Whittaker Since taking office in July, Theresa May has made it clear that she wants to put the ‘just about managing’ – those working families struggling to get by – at the heart of her government’s agenda. Yet Wednesday’s Autumn Statement, which provided the first opportunity for setting out a package of support, proved less jam-packed … Continued READ MORE
Firms· Prices & consumption· Economic growth Businesses’ Brexit concerns haven’t stopped us shopping 18 August 2016 by Matthew Whittaker Business are worried about Brexit, but consumers haven’t got the memo. That’s the state of play from the limited evidence that has emerged since the vote on 23 June. In the short term firms and people can have different views about its impact. But, just as in the long run we are all dead, so … Continued READ MORE
Living standards· Incomes· Prices & consumption Five charts that show who spends what in the UK 8 December 2015 by Matthew Whittaker The issue of living standards has – rightly – risen up the agenda in recent years, following the unprecedented six year-pay squeeze and severe hit to household incomes in the years after the financial crisis of 2008. Yet too little attention is given to the other side of the living standards equation: the cost of … Continued READ MORE
