The Government must focus on all three drivers of incapacity and disability benefit spending – entrances, entitlements and exits – if its reforms are to stem rising spending and boost living standards by getting more people back into work, according to new research published today (Thursday) by the Resolution Foundation. Ahead of the Government’s upcoming … Continued

Low-paid workers are the least likely to receive sick pay, most affected by a lack unfair dismissal protection, and are more than ten times as likely to be on a zero-hours contract than high earners – so are most likely to benefit from the new provisions laid out in the Government Employment Rights Reform Bill, … Continued

Around one-in-seven (2.7 million) employees across Britain experience erratic earnings – defined as having four or more months in a year where their earnings are at least 25 per cent above or below their average incomings – according to new analysis from the Resolution Foundation published today (Tuesday). The report Unstable Pay, produced with the … Continued

Changes in family spending – which the Climate Change Committee (CCC) forecast will ultimately save the average household £1,080 a year in 2050 – will be the key to the next phase in Britain’s decarbonisation drive, but policy must ensure these gains are shared with poorer families, the Resolution Foundation said today (Wednesday). The CCC’s … Continued

The Government ran a record monthly surplus in January – driven by Self-Assessment tax receipts which are always concentrated in January – but looking through the bumper monthly receipts, there are signs that bad news on the economy is leading to a deterioration in the public finances and leaving the Chancellor at risk of breaking … Continued

CPI inflation rose sharply by 0.5 percentage points to 3 per cent in January 2025, exceeding market expectations of 2.8 per cent and kicking off another year or rising inflation, compounding financial pressures for low and middle-income households. Beneath the headline rate, the increase was driven by a rebound in airfares, broad-based increases in food-price … Continued

The UK labour market is blowing hot and cold, with the strongest year for pay packets in two decades contrasting with an 18-month fall in the employment rate. But of these two trends, the latter is more likely to persist into 2025, the Foundation said in response to the latest ONS labour market statistics. Payrolled … Continued

Rising bills, falling support, and a bizarre, outdated design, mean that Council Tax is increasingly resembling the dreaded Poll Tax that it replaced, as poorer households spend an ever-greater share of their income paying it, according to new Resolution Foundation research published today (Monday). Money, Money, Money – the third report of the Foundation’s Unsung … Continued

The UK economy unexpectedly grew at the end of last year, despite the Bank of England predicting last week it would be in recession territory. But GDP per capita – which closely tracks disposable income growth – is still lower today than it was before the pandemic, the Resolution Foundation said today (Thursday). Having grown … Continued

Rooftop solar panels could cut poorer households’ energy bills by almost a quarter, but big upfront costs mean millions are missing out, according to new Resolution Foundation research published today (Thursday). Sunny day savings examines what the Government’s proposed ‘rooftop revolution’ in solar energy – which could put millions more solar panels on roofs by … Continued

The Bank of England’s decision to cut interest rates from 4.75 to 4.5 per cent was expected, but two votes for even larger cuts were not. This suggest rates may come down more quickly than had previously been expected, raising the Chancellor’s hopes of lower debt servicing costs that could help the UK’s fiscal position, … Continued

Ethnic minorities spend a greater share of their household income on housing than White British counterparts but get less in return as they are more likely to live in damp or overcrowded conditions, according to new Resolution Foundation research published today (Thursday). Heritage and home reveals how stark housing affordability gaps cannot be fully explained … Continued

Higher interest rates and a weaker economic outlook could force the Chancellor to choose between fresh policy-tightening measures on 26th March, or breaking the fiscal rules she set only last October, despite markets recovering after their January jitters, according to new research published today (Thursday) by the Resolution Foundation. The Foundation’s latest Macroeconomic Policy Outlook … Continued

The Chancellor added plenty of concrete to the Government’s nascent economic strategy, setting out plans to build new railway lines, road tunnels and runways. But she’ll face tougher decisions ahead in her quest for growth, particularly on new trade agreements with India and an updated relationship with the EU, the Resolution Foundation said today (Wednesday). … Continued

New ONS population projections should, if incorporated by the Office for Budget Responsibility (OBR), improve the economic and fiscal outlook, and reduce borrowing by around £5 billion, the Resolution Foundation said today (Tuesday). The new projections have revised up expectations of the working-age population in 2029-30 by around 400,000. Based on previous scenarios from the … Continued

The latest data from the Wealth and Assets Survey (WAS) shows that British household wealth continued its upward march to hit a record high of £13.6 trillion in the two years to March 2022 (equivalent to £294,000 for the typical household), before a likely fall during the cost of living crisis – according to quickfire … Continued

Higher than expected spending meant that public sector borrowing in December was £3.2 billion above the Office for Budget Responsibility (OBR) forecast, but cash measures show government requirements remain on track in the run to recent new year market jitters, the Resolution Foundation said today (Wednesday). The latest ONS data shows that the Government borrowed … Continued

The jobs market continued to cool in November, and there has now been no growth in payrolled jobs since May. But this cooling is yet to affect workers’ pay packets, who have enjoyed the best year for wage growth since 2005, the Resolution Foundation said today. The latest ONS data showed further evidence that the … Continued

The UK economy has returned to the weak growth that has characterised the past 15 years, as the mini-recession in the second half of 2023, and subsequent recovery in early 2024, has petered out, the Resolution Foundation said today. The economy grew by 0.1 per cent in November – with service sectors such as hotels, … Continued

CPI inflation dropped to 2.5 per cent in December 2024 – slightly lower than market expectations with indicators pointing to a welcome fall in underlying inflationary pressures – ending a run of bad news about the economy that has pushed up UK interest rates and increased pressure on the Chancellor. Underneath the headline rate, which … Continued

The Government’s proposed clampdown on the Right to Buy council homes will significantly blunt the impact of the policy. But it still faces a huge task in replenishing Britain’s affordable housing stock – with 400,000 more properties needed, at a cost of £50 billion, just to get back to 2010 levels of sub-market rent homes, … Continued

The sky-high cost of housing outweighs the relatively low cost of food to make Britain a particularly pricey country for poorer families – and widens household income gaps between poor British households and their German, Dutch and French counterparts – according to new Resolution Foundation research published today (Monday). The briefing note Whose price is … Continued

Britain is getting older, with the median age up by more than seven years since 1974. But this ageing is being driven by rural and coastal regions, as cities are getting younger, while London is a major exception to these trends, according to new research from the Resolution Foundation, published today (Wednesday). Ageing in the … Continued

Rising parental employment over the past two decades has switched the focus of Britain’s child poverty challenge from tackling workless households to supporting working families, with many kinds of working families now facing a greater risk of poverty than at the turn of the millennium, according to research published today (Monday) by the Resolution Foundation. … Continued