Housing ‘Generation rent’ needs a helping hand 1 September 2011 by Vidhya Alakeson Without a clear signal from government of its commitment to build-to-let development, we are unlikely to see investment take off in a new type of private rented sector Yesterday’s report from the National Housing Federation predicted that by 2021 home ownership in Britain will have fallen to its lowest levels since the mid 1980s. 64 per … Continued READ MORE
Labour market Squeezed households will need higher wages 26 August 2011 by James Plunkett While Libya takes the spotlight, the British economy wheezes in the dark. Monday’s survey from Markit showed household finances worsening at their fastest rate since early 2009. Yesterday, a new poll from the Resolution Foundation confirmed that picture. Half of all low-to-middle income households say they’re running out of cash each month; only one in four are … Continued READ MORE
Economy and public finances Household finances are a ‘millstone’ around the neck of recovery 25 August 2011 by James Plunkett A new poll out today from the Resolution Foundation confirms the extent to which poor household finances are now exerting a downward pull on the UK economy. The poll, carried out for the Foundation by ipsos MORI, finds that almost half of all people on low-to-middle incomes now say have no cash left over at the end … Continued READ MORE
Welfare These tax cut whispers are about to get louder 21 August 2011 by Gavin Kelly With summer over, the skies are darkening in more ways than one. Economic forecasts, previously strong for this autumn, have long been heading south. Last week sharpened the sense of impending crisis. The FTSE has been shaken more violently than at any time since the paroxysms of early 2009. On Wednesday, unemployment stats took their … Continued READ MORE
Housing Making a Rented House a Home 8 August 2011 by Vidhya Alakeson Published today, the Resolution Foundation’s Making a Rented House a Home outlines the shocking fact that the average low to middle income household buying a home today would have taken 31 years to save for a deposit , compared to 8 years in 1983. Last week a report by the estate agents, Savills, revealed that for the … Continued READ MORE
Living standards Low growth implications for living standards particularly bleak 26 July 2011 by James Plunkett This morning’s weak Q2 stats (pdf) would be worrying in any recovery. But in the aftermath of such a deep fall in output their implications for real trends in living standards are particularly bleak. The UK economy still has a long way to climb back to pre-recession levels of output. Chart 1 below (now updated from a recent post to … Continued READ MORE
Labour market Share of GDP paid to low earners down 25% in 30 years 25 July 2011 by Matthew Whittaker The Resolution Foundation today publishes the latest report to the Commission on Living Standards. The report,Missing Out, (pdf) reveals that the share of GDP paid as wages to the bottom half of earners has fallen by a quarter over the last 30 years. In 1977, workers in the bottom half of the earnings distribution received £16 of … Continued READ MORE
Living standards Who ate all the pie? 25 July 2011 by Gavin Kelly You probably won’t be too surprised to hear that for a long time many workers have been receiving an ever smaller portion of the fruits of economic growth. But if we are to properly understand the ‘trickle-up’ tendencies of British capitalism we need to not only register the depressing headline but get under the surface … Continued READ MORE
Economy and public finances A gloomy prognosis for Q2 growth stats 22 July 2011 by James Plunkett Next Tuesday the ONS releases its first estimate of second quarter UK GDP growth. It may be a slight exaggeration to call it a ‘make or break’ moment for the Chancellor but ‘make or brake’ might not be a bad description. After six months of no growth another three months of flat GDP would strengthen … Continued READ MORE
Economy and public finances When rates finally rise, things are set to get nasty 18 July 2011 by Gavin Kelly A good recession followed by a bad recovery. Trite lines like this are often wide of the mark, but this one bears some truth. The fallout of the economic downturn over the last few years – though harsh – was less gruesome than first feared in terms of overall unemployment, bankruptcies and repossessions. The risk … Continued READ MORE
Living standards Haven’t I seen this revolution before? 12 July 2011 by Gavin Kelly David Cameron’s public service reforms suffer from a serious zeitgeist problem. Buried under the detritus of the escalating News International scandal is the government’s long awaited public services white paper. Assuming you missed it, it’s all about the need for “narrative” and to demonstrate a coherent governing project. Senior politicians, and the commentators they talk to, obsess … Continued READ MORE
Welfare The 15p Chancellor? How Osborne could outflank Labour on tax 11 July 2011 by Gavin Kelly After a year in power, in the aftermath of a traumatic recession and with unemployment still riding high, the Chancellor needs not only to deal with the immediate economic predicament but also to chart a course to the next election. Economic and political cycles need to be aligned. It is already a commonplace in Westminster … Continued READ MORE
Welfare The perils of welfare dependency – but not the kind you’re thinking of 5 July 2011 by Donald Hirsch For the entire 30 years of my working life, reforms to our welfare system have marched to the drumbeat of calls to reduce “dependency”, by getting more people out to work. So hard have governments tried to achieve this aim that they have created a new kind of dependency, this time among working families receiving … Continued READ MORE
Living standards Dilnot survives the Russian front… for now 4 July 2011 by Gavin Kelly Social care is a minefield for politicians – and the Dilnot report offers no easy option for the government or the opposition. “One of the three Russian fronts of Whitehall”. That’s how a very senior Whitehall mandarin described social care to me over a decade ago. Alongside housing benefit and local government finance, social care … Continued READ MORE
Living standards Britain’s Recovery Rests On The Shoulders Of Suburbia 30 June 2011 by James Plunkett Enfield, North London is trademark British suburbia. Middle-income but with patches of poverty and patches of wealth, the high street is dominated by chain stores and a scattering of chain-owned pubs. On first sight, there are few signs here that the UK is recovering slowly from a deep recession. But look closer and things don’t … Continued READ MORE
Housing The long-term problem for “generation rent” 20 June 2011 by Vidhya Alakeson We need to stop relying on home-ownership as the only way to build wealth if we’re to have an adequate social care system.It’s been a bad few weeks for social care. First the faltering of Southern Cross, then Panorama’s revelations about abuse at residential homes. Now, the Equalities and Human Rights Commission reveals shocking levels … Continued READ MORE
Economy and public finances Inflation hits work incentives 14 June 2011 by James Plunkett New inflation stats are out tomorrow and they’re expected to show further rises in CPI and RPI. Aside from their brief peak in 2008, headline rates of inflation are now at their highest levels for 19 years. That’s prompting more discussion about the way rising prices are playing out for Britain’s households, from a nice graphic … Continued READ MORE
Housing On housing, while Ed has got it wrong, Boris has the answer 13 June 2011 by Vidhya Alakeson In his speech on social responsibility today, Ed Miliband argued that low income working people and those doing voluntary work should be given priority for council housing.While this might help position his leadership, it is misguided as a piece of housing policy. Shifting ordinary working families into social housing to replace more vulnerable groups does not fix a housing … Continued READ MORE
Living standards HELP for America’s struggling middle class? 9 June 2011 by Sophia Parker Last month, Tom Harkin, one of the Democrat giants of the Senate and Chair of the Health, Education, Labor and Pensions (HELP) Committee, convened the first of several meetings to examine why the American Dream appears to be ever harder to reach, even for those who – in Clinton’s words – ‘work hard and play by the … Continued READ MORE
Housing Homeownership is history. Housing policy should cash in on the private rented sector 8 June 2011 by Vidhya Alakeson Karen and Darren are much like other parents in their mid-30s; juggling work and the needs of four children. With two decent salaries from full-time, skilled jobs and help from tax credits and child benefit, they should be comfortably off. But at the end of each month, there is nothing left. Despite their best efforts … Continued READ MORE
Economy and public finances The growing need for a policy response to the ‘new inflation’ 1 June 2011 by James Plunkett There’s been much debate on these pages about the political implications of higher inflation. Ironically, this morning’s news of record food prices could relieve the pressure on the Bank of England Governor. His argument for caution when it comes to a rate rise is based on the claim that UK inflation is now being driven by events … Continued READ MORE
Economy and public finances Why GDP growth does not mean recovery for everyone 27 May 2011 by James Plunkett It’s fairly widely assumed that the outcome of the next election will pivot on the strength — or otherwise — of Britain’s economic recovery. But what kind of recovery are we seeking? The perceived wisdom suggests that the key figure to look out for is strong and sustained GDP growth. Other stats — like those … Continued READ MORE
Living standards Why the ‘squeezed middle’ is here to stay 22 May 2011 by Gavin Kelly Sitting in their living room in Mansfield, Karen and Darren put on a brave face about the future. They are phlegmatic about their situation – they know they are doing better than many others. Both work full time, Karen for a children‘s centre and Darren for a software company, each earning a bit less than the … Continued READ MORE
Living standards Obama’s trillion dollar question 18 May 2011 by Sophia Parker It was only a month ago that America narrowly escaped a Federal government shutdown, caused by the intense difficulties of reaching a consensus on the 2011 budget. But if that skirmish seemed significant, it is nothing compared to the battle that is erupting between Democrats and Republicans over Obama’s 2012 budget proposals, and his accompanying plans … Continued READ MORE
Labour market Making pay work: can the living wage provide a comprehensive route to improving living standards? 9 May 2011 by Matthew Whittaker Earlier this month, the living wage campaign celebrated its ten year anniversary with a gathering of two and half thousand supporters in central London. It is an important time for the movement, as it seeks to significantly extend the scope of the living wage by targeting major low-wage employers. Achieving this ambition is likely to raise new … Continued READ MORE
