Living wage – coming to a city near you

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This post originally appeared on Gavin’s New Statesman blog The last time a letter left on a desk caused such a stir it involved an exchange between two senior politicians about the future of the country’s finances. This time the note was from a group of Whitehall cleaners to Iain Duncan Smith asking him to make … Continued

A tax on aspiration?

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This post originally appeared on Gavin’s New Statesman blog Governments, like individuals, often like to believe their varying instincts and aspirations all fit comfortably together even when they don’t. They prefer to try to keep these tensions under wraps and sometimes don’t even like to admit them in private to themselves. And the coalition is … Continued

Minimum wage is the least carers deserve

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Gavin Kelly, The GuardianA good thing about the national minimum wage, you might think, is that even if it’s set at a pretty modest level you can at least be sure that everyone will receive it. Sure, there will be the odd rogue employer who needs to be tackled for non-compliance. But it’s not like there … Continued

More than a minimum?

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This post first appeared on Gavin Kelly’s New Statesman blog. Once in a while a policy moves from being partisan and divisive to representing the mainstream consensus in a very short period of time. That is, or at least was, the case with the national minimum wage (NMW). It wasn’t so long ago it was denigrated … Continued

Bad Univeralism

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Gavin Kelly, Prospect Universal welfare benefits, available to all regardless of income, have long animated the politics of the welfare state. Prime Ministers from Atlee to Cameron have grappled with the universal principle, whereby certain benefits are given to all citizens, even the rich. Universalism goes against the notion that benefits should always target the … Continued

Left behind in the lower realms of the labour market

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Times are undoubtedly tough for the 350,000-plus graduates who now leave university every year. Collapsing demand in some parts of our jobs market has seen competition for jobs intensify and many graduates now seek jobs for which they are over-qualified, accepting lower wages than their qualifications would usually be expected to command.And yet for all … Continued

Making sense of the budget

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This post originally appeared on Gavin’s New Statesman blog “In this country we have to look upon budget promises as made of the same stuff as lover’s oaths.”  So said Lord Salisbury, three times Conservative PM, and his words are perhaps more apt than ever given that all the love drained out of the Coalition’s marriage … Continued

Osborne opts for the tax politicians love…

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… and economists love to hate. This post originally appeared on Gavin’s New Statesman blog George Osborne’s budget morning story, that Stamp Duty will go up to 7 per cent on properties over £2 million, shouldn’t really surprise us. It has strong echoes of Gordon Brown’s 2010 budget day story about hiking Stamp Duty up … Continued

A Budget For Working Families?

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This blog originally appeared on The Huffington Post Chancellor George Osborne says tomorrow’s budget will be a budget for working families. “The bulk of the measures in the budget are going to be targeted at working people on low and middle incomes” he told the BBC’s Andrew Marr on Sunday. So, with budget day upon us, … Continued

Tax credit cuts: a false economy

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This blog originally appeared on Public Finance If the Chancellor wants to help low- to middle-income households, he would be wise not to sacrifice tax credits, by far the most progressive way to help poor families Seventy per cent of April’s new cuts to tax credits will fall on households in the bottom half of … Continued

The price of motherhood

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For the first time last year, the hourly gap in pay between full-time working men and women fell to 10 percent. While that’s not good enough and is still higher than in much of the rest of Europe, it is a sign of enormous progress in reducing work place inequality. In 1997, the hourly full-time … Continued

Explaining the child benefit saga

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This post originally appeared on Gavin’s New Statesman blog Observing a government in the midst of a policy u-turn is rarely an elegant sight. When it is drawn out over an extended period, and fuelled by briefing and nods and winks from the PM downwards, it is even less edifying. So it is with the coalition’s … Continued

The problem of low wage work runs far beyond workfare

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This article originally appeared in the Huffington Post The recent furore surrounding the UK government’s Work Experience programme has centred somewhat narrowly on the rights and wrongs of large corporations benefiting from free youth labour. Largely absent from the debate has been the wider problem of low wage work in our economy. At a time of … Continued

The Changing Shape of the UK Job Market

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This post appeared on the OECD Insights blog It’s becoming more and more common to hear both researchers and policymakers talking about the UK developing an hourglass labour market. This is the idea that, because of technical progress, many middle-skill, middle-wage jobs (such as assembly line operators and clerical workers) have been replaced by machinery, hollowing out … Continued

What works in encouraging saving?

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This post originally appeared on Left Foot Forward There are many tricks that can be used to encourage more saving – but we don’t know if any of them work. That is the finding from a new report from the Institute of Fiscal Studies. In looking outside classical economics to understand what drives savings, the authors pinpoint four … Continued

Tax credits: a flawed friend

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Following on from this week’s bleak news on jobs – with unemployment up and confirmation that those new jobs on offer are all part time and insecure – another wave of stealth cuts is about to crash over Britain’s working poor. After their tax credits were singled out for harsh treatment last spring then frozen in the autumn, … Continued

The fraying thread between pay and productivity

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Do workers reap the benefits of productivity growth?  Few questions are more central to the conundrum of faltering living standards. If the 20th century was a golden era for material wellbeing in Britain, that’s explained by one factor above all others: from 1900 to 2000 UK labour productivity grew roughly fourfold, translating into unprecedented growth in real … Continued

Beneath the unemployment stats, our jobs market is changing

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Unemployment is up.  That’s the latest from the Office of National Statistics.  Their stats released this morning show 48,000 people fell out of work in the last quarter, with the unemployment rate rising to 8.4 percent. For ministers looking for a positive spin, the good news is that employment’s also up, and there has been a slight … Continued

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