Chancellor faces an £84bn borrowing black hole in his Autumn Statement 26 October 2016 The Chancellor is facing a sharp deterioration in the public finances in his Autumn Statement, but a fiscal ‘reset’ would allow him to boost investment spending and increase support for ‘just managing families’, according to a new report published today (Wednesday) by the Resolution Foundation. The report, Pressing the reset button, comes with the Autumn … Continued READ MORE
UK maintains record employment but threat of fresh pay squeeze grows stronger 19 October 2016 The initial post-referendum labour market figures show very little change from the period running up to it, with employment picture remaining strong but pay growth continuing to disappoint, the Resolution Foundation said today (Wednesday) in response to the latest labour market statistics. The figures showed that the employment rate remained at a record high, while … Continued READ MORE
Typical earnings of the self-employed lower than 20 years ago 18 October 2016 The dramatic shift in self-employment over the last two decades – including the decline in full-time work and the falling share of self-employed business owners who have staff of their own – has been a critical factor in a 20-year stagnation in typical earnings, according to a new report published today (Tuesday) by the … Continued READ MORE
National Living Wage likely to reach £7.50 next April giving over 4 million workers a pay rise of up to £600 12 October 2016 Weak pay growth forecasts post-Brexit set to knock 10p off the National Living Wage next year The National Living Wage (NLW) is likely to rise to around £7.50 an hour next year, 10p lower than expected in March because of the weaker outlook for pay in the wake of the Brexit vote, according to … Continued READ MORE
The Intergenerational Commission’s first call for evidence is open 7 October 2016 Questions of fairness between the generations are currently high on the agenda, and for good reason. Today’s younger generations are finding it more difficult to get on the housing ladder, experience slower pay progression and much lower levels of pension saving in their jobs, and can expect less from the welfare state when they fall … Continued READ MORE
Theresa May’s record will be judged as much on the Britain she builds as the Brexit she delivers 5 October 2016 Responding to the Prime Ministers’ speech to the Conservative Party Conference today (Wednesday), Torsten Bell, Director of the Resolution Foundation, said: “Theresa May’s speech focused squarely on the right question, how to help Britain’s just managing families who have lost out in recent decades. For those families change has indeed got to come. “But … Continued READ MORE
Britain’s ‘just managing’ families have experienced a 13 year income squeeze 29 September 2016 PM right to focus on families put under pressure by weak income growth and rising costs An unprecedented pay squeeze, rising housing costs and the added financial pressure of having children mean that the typical incomes of ‘just managing’ families are lower than they were over a decade ago – highlighting why the new Prime … Continued READ MORE
Amid all the Brexit uncertainty, a clearer picture is emerging 21 September 2016 by Matthew Whittaker Among the many things that feel different in the post-referendum world, there is an unusual air of anticipation surrounding what would previously have been considered relatively underwhelming statistical releases. Today we were treated to a quartet of such publications. On the face of it they appear to point in different directions, allowing commentators on both … Continued READ MORE
Latest economic assessments highlight divide between nervous businesses and resilient consumers 21 September 2016 How these sentiments converge will prove key to UK’s medium-term economic prospects, says RF Commenting on the latest economic assessments published today (Wednesday) by the ONS, Bank of England and OECD, Matt Whittaker, Chief Economist at the Resolution Foundation, said: “The range of expert economic assessments published today – while appearing to point in … Continued READ MORE
No sign yet of the Brexit vote shaking UK’s impressive jobs performance 14 September 2016 Further slowing of wage recovery highlights need to tackle major problems on pay The UK’s record employment performance has continued through the summer, with no sign yet of any ‘Brexit effect’, the Resolution Foundation said today (Wednesday) in response to the latest ONS labour market figures. The Foundation notes that any ‘Brexit effect’ was … Continued READ MORE
Scale of zero hour contracts use presents challenge for Prime Minister’s focus on job insecurity 8 September 2016 Two in three zero hour contract workers over 25 have been on one for more than a year The continued widespread use of zero hours contracts will be a key challenge in the Prime Minister’s action against job insecurity, a concern cited in her maiden speech, according to the Resolution Foundation ahead of the latest … Continued READ MORE
Backsliding on the National Living Wage could leave low paid workers up to £1,000 worse off 7 September 2016 RF says Prime Minister should stick to her guns and allow in-built flexibility of NLW to take its course Backsliding on the National Living Wage (NLW) could leave some full-time workers up to £1,000 a year worse off by 2020 – with women, the young and older workers most likely to lose out – … Continued READ MORE
Four-in-five young low-paid social care workers get pay rise to National Living Wage 30 August 2016 NLW implementation in care encouraging so far, but risks faltering if public funding not increased Four in five young social care workers previously paid below the new National Living Wage (NLW) introduced this April have enjoyed a pay rise as a result of it despite no legal entitlement, according to a new report published today … Continued READ MORE
Employment reached record high on eve of referendum result 17 August 2016 Britain facing a major pay challenge in wake of post-referendum economic uncertainty Britain hit record employment on the eve of the referendum result, but its recent poor performance on pay is a major concern with earnings growth expected to slow, the Resolution Foundation said today (Wednesday) responding to the latest ONS labour market … Continued READ MORE
Brexit pay squeeze will be larger than boost some low-paid workers receive from lower migration 15 August 2016 Cutting migration creates huge new challenges for business and the labour market that require a major policy overhaul Cutting migration could deliver a small pay boost to some low-paid British-born workers, but any gains are likely to be dwarfed by the far bigger weakening of wage growth forecast by the Bank of England in the … Continued READ MORE
Government right to step up naming and shaming of minimum wage dodgers 11 August 2016 Further enforcement resources will be needed as number of workers on wage floor is set to treble Commenting on the government’s publication today (Thursday) of 200 employers who have been fined for not paying the National Minimum Wage, Conor D’Arcy, Policy Analyst at the Resolution Foundation, said: “There is no excuse for any employer … Continued READ MORE
Economy and public finances Concerns of Bank’s business contacts underline challenge Brexit poses for Britain’s powerhouse services sector 10 August 2016 Commenting on the findings published today (Wednesday) in the Bank of England’s Agents’ Summary of Business Conditions report, Matt Whittaker, Chief Economist at the Resolution Foundation, said: “Concerns raised by firms in today’s report underlines the big challenge Brexit poses for the services sector, which is being hit by a loss of confidence without … Continued READ MORE
Economy and public finances Bank right to bring out monetary sledgehammer but still forecasts a £600 earnings hit in 2018 4 August 2016 Government, rather than Bank of England, policy holds the key to reducing lasting Brexit hit The Bank’s ‘monetary sledgehammer’ should help to restore business and consumer confidence in the wake of the referendum vote but government decisions on trade and industrial policy are key to determining the lasting effect of Brexit on economic growth … Continued READ MORE
Housing Home ownership struggle hits Coronation Street 2 August 2016 Plummeting home ownership across Manchester and other major northern cities shows housing no longer just a London problem English home ownership has fallen to levels last seen in 1986, with Greater Manchester, South and West Yorkshire and the West Midlands Metropolitan area experiencing double digit falls since their early 2000s peak, according to new … Continued READ MORE
Labour market London Living Wage should rise further to reflect higher cost of living in the capital 27 July 2016 The London Living Wage should increase to reflect the increased cost of living in the capital, including the growth of households renting privately, the Resolution Foundation says today (Wednesday) in its review of the Living Wage. The Resolution Foundation report to the Living Wage Commission highlights the success of the campaign for firms to … Continued READ MORE
Labour market Post-referendum rise in business uncertainty casts shadow over strong jobs boost in run up to vote 20 July 2016 The UK enjoyed a welcome pre-referendum vote jobs boost, though reports of rising business uncertainty post-vote will be a major challenge over the next year, the Resolution Foundation said today (Wednesday) in response to the latest labour market statistics and the Bank of England Agents’ summary of business conditions. The UK employment rate reached … Continued READ MORE
Welfare IMF downward growth revision would mean the tax take falling by £150m a week 19 July 2016 RF says active fiscal and monetary policy needed to mitigate impact of any post-Brexit downturn The IMF’s revised outlook for GDP growth in the UK would mean the tax take falling by around £150m a week, presenting a huge challenge to the new Chancellor, the Resolution Foundation said today (Tuesday) in response to the … Continued READ MORE
Labour market· Intergenerational Centre Millennials facing ‘generational pay penalty’ as their earnings fall £8,000 behind during their 20s 18 July 2016 Fresh evidence of the growing intergenerational inequality that new Prime Minister has warned of Britain’s longstanding promise of ‘generational pay progress’ could turn into a ‘pay penalty’ for millennials, who are at risk of being the first generation to earn less than their predecessors over the course of their working lives, the Resolution Foundation says … Continued READ MORE
Housing· Intergenerational Centre Millennials have paid £44,000 more rent than the baby boomers by the time they hit 30 16 July 2016 Delivering the Prime Minister’s pledge to deal with ‘housing deficit’ is central to boosting younger generations’ living standards The combination of falling home ownership and rising costs in the private rented sector mean that today’s millennial generation will have spent £44,000 more on rent by the time they reach 30 compared to the baby boomers, … Continued READ MORE
Labour market Jobs protected as prices and profits take the early squeeze from National Living Wage 11 July 2016 Post-Brexit uncertainty could reduce real-terms value of NLW by up to 40p an hour in 2020 Employers have responded to the National Living Wage (NLW) by raising prices or reducing profits rather than cutting jobs, but more will have to look at productivity-enhancing measures in the coming years, according to a new report published today … Continued READ MORE
