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
Labour market Brexit vote requires migrant-reliant firms to rethink business models 4 July 2016 The decision to leave the European Union may fundamentally change the business models of firms reliant on migrant labour if promises to end freedom of movement are delivered. Some sectors have the potential to respond with greater automation while others will require a smart immigration policy from government to prevent damaging staff shortages. This … Continued READ MORE
Welfare· Intergenerational Centre Brexit defeat for millennials risks being compounded by huge tax and benefit transfer from young to old 3 July 2016 RF says repairing generational divide a crucial task for new PM as it announces new Intergenerational Commission The next Prime Minister must repair the stark intergenerational divide exposed by the EU referendum result, but the task will be made harder by tax and benefit plans they will inherit that are set to redistribute billions from … Continued READ MORE
Economy and public finances Chancellor right to abandon Budget surplus target in the face of any post-Brexit deterioration in the economy 1 July 2016 Responding to the Chancellor’s announcement today that he has abandoned his Budget surplus target for 2020, Matt Whittaker, Chief Economist at the Resolution Foundation, said: “It’s welcome – though not surprising – that the Chancellor has explicitly acknowledged that it would be wrong to pursue a surplus in the face of any post-Brexit deterioration in … Continued READ MORE
Living standards Welcome income growth ahead of Brexit uncertainty – but child poverty rises for the first time since 2006 28 June 2016 Typical incomes have finally returned to pre-crisis levels, but the number of children living in poverty has risen for the first time in a decade, the Resolution Foundation said today (Tuesday) in response to the latest Households Below Average Income figures (HBAI). The Foundation notes that typical household incomes reached £473 a week in 2014-15 – … Continued READ MORE
Living standards Half of working Britain has seen no rise in living standards since early 2000s 28 June 2016 Squeeze on earnings and rising housing costs have hit family budgets, fuelling disillusionment at economic and political status quo Weak income growth and rising housing costs have effectively wiped out any gains for low and middle income working age households since the early 2000s, providing the backdrop to disillusionment with the political and economic status … Continued READ MORE
Labour market Welcome strengthening of pay growth following introduction of National Living Wage 15 June 2016 Real wage growth strengthened in recent months, driven in part by the welcome pay boost delivered by the new National Living Wage, the Resolution Foundation said today (Wednesday) in response to the labour market statistics. Real earnings growth increased to 1.9 per cent in the three months to April, bucking the recent trend of … Continued READ MORE
Labour market Disabled people face twice the ‘time out’ penalty when trying to re-enter work 7 June 2016 Radical new approach needed to prevent those with disabilities leaving the workforce if government is to have any hope of meeting its disability employment target Disabled people who have been out of work for over a year see their odds of returning to employment reduced at twice the rate of non-disabled people, a new report … Continued READ MORE
Welfare Landmark day for Universal Credit as full service is rolled out Jobcentres today 25 May 2016 Resolution Foundation says that major reforms are needed to make a success of the flagship welfare reform programme With the roll-out of the full Universal Credit service finally starting today (Wednesday) – it is being rolled out to five jobcentres including Bath and Newcastle Cathedral Square, with more to follow in the coming months … Continued READ MORE
Labour market Welcome jobs boost, but signs that the post-crisis surge is reaching its limits 18 May 2016 The proportion of people in work in the UK recorded a modest uptick in the first quarter of 2016, confounding the view that uncertainty in the run-up to the EU referendum would hamper jobs growth, according to the Resolution Foundation’s analysis of today’s (Wednesday) ONS labour market statistics. The employment rate increased to 74.2 per … Continued READ MORE
Housing House prices have risen over five times faster than wages in the last five years 17 May 2016 Average house prices across the UK have increased 5.1 times faster than average weekly earnings over the last five years, the Resolution Foundation said today (Tuesday) in response to the latest ONS House Price Index (HPI). Resolution Foundation analysis of HPI data shows that house prices have increased by 36 per cent since April 2011, … Continued READ MORE
Labour market Chronic lack of clear career routes for non-graduate workers stranding many in low pay 11 May 2016 Upcoming Apprenticeship Levy and Skills White Paper offer once-in-a-generation chance to help ‘forgotten 40 per cent’ Poor career routes are holding back the ‘forgotten forty per cent’ of the workforce – mid-skilled workers with at least five A*-C GCSEs but without a university education. This is according to a new report published today (Wednesday) by … Continued READ MORE
Labour market Step up in HMRC enforcement needed to stop employers dodging the National Living Wage 11 May 2016 Welcoming the National Audit Office (NAO) report published today (Wednesday) into non-compliance with the National Minimum Wage, Laura Gardiner Senior Policy Analyst at the Resolution Foundation said: “Two million people now earn the legal minimum following the introduction of the National Living Wage. It’s hugely concerning that we don’t know how many people are … Continued READ MORE
