Squeeze extends to low earners who are outside their companies’ DB pension schemes Today’s employees are footing part of the bill for plugging historic gaps in defined benefit (DB) pension schemes, even when they have no claim on the pension pot, according to a first of its kind study published today (Monday) by the Resolution … Continued

Getting on the housing ladder is a thing of the past for many young families across the country, with home ownership halving among this group between 1994 and 2016 in areas such as West Yorkshire, Greater Manchester and Outer London, new analysis by the Resolution Foundation has found. The new research counters the popular perception … Continued

  Britain kicked off 2017 with a renewed jobs boom and a painful pay squeeze, the Resolution Foundation said today in response to the latest labour market figures. Employment reached an all-time high of 74.8 per cent in the three months to March, while unemployment fell to the lowest level since 1975. In contrast, real … Continued

  Britain’s pay squeeze is on course to deepen in April as a result of a sharp increase in inflation, the Resolution Foundation said in response to the latest inflation figures today. The Resolution Foundation’s latest pay projection following today’s inflation figures indicates that real pay looks to have fallen by between -0.3% and -0.6% … Continued

  Tax rises have made a comeback in the 2017 General Election, marking a big change from recent elections where tax cuts have been front and centre of parties’ manifestos, according to a new briefing note published today (Tuesday) by the Resolution Foundation. The report notes that both Labour and the Lib Dems have committed … Continued

Britain is on course for a renewed earnings squeeze, following a sizeable revision of the Bank’s near-term forecasts for pay, productivity and household income growth, the Resolution Foundation said today (Thursday) in response to the latest Inflation Report. The Bank is predicting a 0.8 per cent drop in average pay over the course of 2017, … Continued

  Huge uncertainties about the main parties’ fiscal stances, just four weeks from polling day, mean that there could be as little as £7bn difference between them – or well over £50bn. This is according to a new report published today (Thursday) by the Resolution Foundation. The Deficit the Election Forgot notes how the deficit has … Continued

The recent pay squeeze has left many of Britain’s 1.8 million older low and middle income households struggling to save for retirement, despite enjoying strong employment growth over the last 20 years. This is according to a new report published today (Wednesday) by the Centre for Ageing Better and the Resolution Foundation. With the electoral … Continued

  Real wages falling in 40 per cent of the economy despite further falls in unemployment Around 40 per cent of the workforce are in sectors where pay is falling in real terms, the Resolution Foundation said today (Wednesday) in response to the latest ONS labour market figures. Real pay growth fell to 0.1 per … Continued

  The latest inflation figure of 2.3 per cent for March means that real average earnings look set to have fallen during the first three months of 2017, six months ahead of the OBR’s projection in the recent Budget, the Resolution Foundation said today (Tuesday) in response to the latest ONS figures. The Foundation’s updated … Continued

Four-fifths of the gains from tax and benefit changes coming into effect later this week (6 April) will go to the richest half of households, with the poorest third of households set to be £70 worse off on average, according to a new briefing note published today (Sunday) by the Resolution Foundation. The analysis looks … Continued

Pay for workers on the National Living Wage (NLW) will rise nearly four times faster than for a typical worker over this parliament, according to new Resolution Foundation analysis marking the latest increase of the NLW to £7.50 an hour today (Saturday). Today’s 30p increase means pay for NLW earners is estimated to be 1.5 … Continued

The number of EU-born workers in the UK fell by 50,000 in the last three months of 2016 to around 2,300,000 – with the biggest falls taking place among graduates and those working in banking, the public sector and construction – according to new analysis published today (Thursday) by the Resolution Foundation. The Foundation’s analysis … Continued

Real earnings falls have arrived earlier than expected as inflation has risen above the Bank of England’s target for the first time since December 2013, the Resolution Foundation said today (Tuesday) in response to the latest inflation figures. Inflation had been below the Bank’s 2 per cent target for a record 38 months, driving recent … Continued

  Commenting on the DWP’s Households Below Average Income statistics published today (Thursday) – the biggest and most authoritative official survey of household incomes – Adam Corlett, Economic Analyst at the Resolution Foundation, said: “The big picture for living standards has been a sharp squeeze and stagnation in the wake of the financial crisis, followed … Continued

Commenting on the news that the Chancellor has dropped plans to increase Class 4 National Insurance contributions for the self-employed in this parliament, Torsten Bell, Director of the Resolution Foundation, said: “Whatever the rights and wrongs of Conservative Manifesto commitments, today’s U-turn on National Insurance means the government has missed an opportunity to correct a … Continued

  Unemployment has fallen to its lowest level in over 40 years but pay growth is also slowing rapidly – and is already negative in parts of the economy ­– the Resolution Foundation said today (Wednesday) in response to the latest ONS labour market figures. Employment remained at a record 74.6 per cent, while unemployment … Continued

Zero-hours contracts (ZHCs) have hit a record high of 905,000, but a significant slowdown in their recent growth has been confirmed, the Resolution Foundation said today (Wednesday) in response to the latest ONS figures. The latest figures show that the number of people on a ZHC grew by more than 100,000 between the last three … Continued

A combination of rising inflation and pay restraint means that average real pay is now falling in the public sector, and is expected to continue falling over the next three years, according to Resolution Foundation’s latest Earning Outlook published today (Wednesday). Forecasts released by the OBR last week showed that overall pay growth could turn … Continued

Britain is on course for an unprecedented 15 years of spending cuts and lost pay growth, according to the Resolution Foundation’s overnight analysis of Budget 2017. The report finds that despite the Budget day focus on short term forecast improvements, the date for achieving an overall budget surplus has been pushed back until 2025. Average … Continued

UK economy forecast to be smaller than previously expected while 80 per cent of the Autumn Statement borrowing downgrade remains Despite short term improvements to both growth and borrowing, the Chancellor has been given weaker than expected economic forecasts by the Office for Budget Responsibility, the Resolution Foundation said today in response to the 2017 … Continued

National Insurance reforms benefit low-paid hairdressers but self-employed management consultants face bigger bills The Chancellor is right to begin tackling the unfair and expensive tax advantages enjoyed by self-employed workers by increasing the rate of National Insurance contributions (NICs) they make, the Resolution Foundation said in response to the Budget announcement today. This change should … Continued

But slowdown in last six months suggests firms’ appetite for ZHCs may be waning The number of people on a zero-hours contract (ZHC) hit a record high of 905,000 in the last three months of 2016, according to new analysis of official data published today (Friday) by the Resolution Foundation. The analysis finds that the … Continued

Healthier-than-expected tax receipts, the absence of any immediate post-referendum slowdown in growth and measurement changes are set to lower Budget borrowing forecasts by £29bn between 2016-17 and 2020-21, according to the Resolution Foundation’s pre-Budget outlook published today (Tuesday). Economy Drive, which brings together economic data published since last November’s Autumn Statement to assess the kind … Continued

  A slowdown in job moving, employers no longer rewarding staff for long service, and a shift towards work in low-paying sectors have meant that millennials have had a slower and lower-paid start to their careers than the generation before them, according to the new research published today (Thursday) by the Resolution Foundation. Study, work, … Continued