Typical household disposable incomes for working-age families are on track to fall by 3 per cent this financial year, and by 4 per cent next year, with the two-year cost-of-living squeeze set to leave families £2,100 worse off and only the very richest households seeing their incomes rise, according to new research published today (Monday) … Continued

Massive income and material deprivation gaps between people with disabilities and the rest of the population mean that disabled people are hugely exposed to the rising costs of essentials, with two-in-five unable to heat their homes this winter, and almost a third needing to cut back on food expenditure, according to new research published today … Continued

While 2023 may offer economic policy makers some relief, with signs inflation will ease and interest rates peak lower than feared, family finances face a ‘groundhog year’ repeat of 2022’s squeeze as the cost-of-living crisis deepens next year, according to the Resolution Foundation’s New Year Outlook published today (Friday). The Foundation says that 2022 has … Continued

Growing numbers of families with children will face effective tax rates of at least 80 per cent and up to 96 per cent next year, as two systems for supporting children (Universal Credit and Child Benefit) collide, according to new Resolution Foundation analysis published today (Wednesday). The separate systems for withdrawing Child Benefit (when one … Continued

Annual CPI inflation fell to 10.7 per cent in November – down from 11.1 per cent in October – its biggest fall since July 2021. But this fall will be of more comfort to policy makers than families, with price rises still massively outpacing pay rises, the Resolution Foundation said today (Wednesday). Inflation fell last … Continued

England’s plans to insulate its housing stock must step up a gear by focusing on the most difficult barrier – nine million homes with ‘leaky walls’ – which poorer owners will simply be unable to address without more radical state support, according to new research published today (Monday) by the Resolution Foundation. Hitting a brick … Continued

Global economic trends that have been the principle driver of the inflation surge of the past 12 months – including high demand for goods from US consumers and trade disruption, as well as fast rising energy prices – have all started to ease in recent months and will put downward pressure on inflation over the … Continued

People choose to work part-time for a number of reasons, many of them positive, but lower living standards, limited progression, and underemployment are key areas for concern, with the concentration of low hours work among lower earners amounting to a ‘part-time work divide’ between rich and poor households, according to new research published today (Wednesday) … Continued

The Ofgem announcement today (Thursday) that the annual energy bill of a typical household would have risen to £4,279 between January and March 2023, were prices not capped by the Government’s Energy Price Guarantee (EPG), means that supporting all households with energy bills over these three months will cost £16 billion, according to Resolution Foundation … Continued

The unique combination of the ending of Covid restrictions, coupled with bespoke schemes for Ukrainians, Afghans and Hong Kong residents, have seen net migration hit a record high of 504,000 in the 12 months to June 2022, despite net migration from the EU actually falling, the Resolution Foundation said today (Thursday) in response to the … Continued

The Chancellor’s Autumn Statement has piled further pressure on ‘the squeezed middle’, with personal tax rises announced during the parliament set to deliver a permanent 3.7 per cent income hit to typical households, the Resolution Foundation said today (Friday) in its overnight analysis of the Autumn Statement 2022. Key findings from the Foundation’s overnight analysis … Continued

The Chancellor has responded to a grim economic outlook with renewed energy support next year and a backloaded fiscal tightening, combining huge stealth tax rises with far less concrete spending cuts, the Resolution Foundation said today (Thursday). The Office for Budget Responsibility (OBR) forecasts combine an energy shock driven recession – unemployment is set to … Continued

A jump in energy costs, despite the Energy Price Guarantee (EPG), and rising food prices, which rose by 16.4 per cent (the biggest annual increase since 1977), pushed CPI inflation to 11.1 per cent in October, and 12.5 per cent for low-income households, the Resolution Foundation said today (Wednesday) in response to the latest ONS … Continued

Press release from the Resolution Foundation Tuesday 15th November 2022 – For immediate release   The UK’s tight labour market has seen the gap between public and private sector pay growth increase to its widest level ever outside of the pandemic period, and public sector vacancies reach a record high – posing delivery challenges to … Continued

Older people will spend a higher share of their income on energy bills this winter than other age groups – with the over-75s expected to spend 8 per cent of their total household income on bills, even with significant government support – but younger households are most at risk of being unable to pay bills … Continued

The UK economy shrank by 0.2 per cent in the third quarter of 2022, setting Britain on course for the quickest return to recession since 1975 and offering sobering backdrop to the Autumn Statement next week, the Resolution Foundation said today (Friday). While a smaller fall than markets expected, the latest contraction was widespread, with … Continued

Fears about robots taking people’s jobs are overplayed, as their negative impacts on some people’s pay and jobs have been offset by gains elsewhere, and the real fear to overcome should be Britain’s lack of productivity-enhancing robots, software, AI and other technologies, according to new Resolution Foundation and LSE research published today (Thursday). Adopt, adapt … Continued

Recent first-time buyers will be hit hard by surging interest rates, with their lifetime interest costs more than doubling over the past five years and their total lifetime costs reaching record highs, although coming house price falls will offer some respite to the next generation of homeowners, according to new Resolution Foundation analysis. With the … Continued

The Bank of England has forecast a prolonged recession and a deep income squeeze next year, as it scaled back expectations of future interest rate rises despite raising interest rates by 75 basis points to 3 per cent today (Thursday), the Resolution Foundation said. The Monetary Policy Committee voted to raise Bank Rate by 75 … Continued

A deteriorating economic outlook and the legacy of Trussonomics has left Rishi Sunak’s Government on course to announce a fiscal tightening of at least £40 billion which is likely to require tax rises, not just spending cuts, according to new analysis published today (Tuesday) by the Resolution Foundation ahead of the Autumn Statement on 17th … Continued

CPI inflation increased by 10.1 per cent in September – driven by surging food prices – which should prompt a significant increase in benefits next April that will help to support families through the ongoing cost-of-living crisis, the Resolution Foundation said today (Wednesday). The Foundation notes that inflation in September was driven by rising food … Continued

The new Chancellor has reversed 60 per cent of the mini-Budget’s tax cuts and committed to scale back energy bill support next year in order to reduce the pressure on the Bank of England to raise interest rates, and on the Treasury to cut public spending, the Resolution Foundation said today (Monday). The Foundation notes … Continued

Over five million families are set to see their annual mortgage payments rise by an average of £5,100 between now and the end of 2024 – with £1,200 of that reflecting higher expectations of interest rate rises since the ‘mini-budget’ – according to new analysis published today (Saturday) by the Resolution Foundation. With the UK’s … Continued

Today’s dramatic mini-Budget reversal, in which the Prime Minister sacked her Chancellor and re-instated the previous Chancellor’s plans to increase corporation tax from 19 to 25 per cent, means that 45 per cent of the tax cuts announced on 27 September have now been abandoned, the Resolution Foundation said today (Friday). However, the combination of … Continued