The outlook for living standards and inequality

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Presentation transcript:

The outlook for living standards and inequality TAP: Health Equality seminar David Finch July 2017 @ resfoundation @davidfinchrf

from past to present

Strong employment growth since 2008

With the greatest employment growth for lower income families

A prolonged post-crisis pay squeeze…

A prolonged post-crisis pay squeeze… …that has just returned

Translating to the lowest decade of wage growth for 150 years

The income recovery has started to weaken

Incomes have recovered at the top and middle, while remaining broadly flat at the bottom

the future

Economic outlook: Real pay growth is set to remain weak

Policy outlook: Some gains from higher wage floor & income tax cuts

But big welfare cuts are yet to fully bite

Leading to net losses for the poorest half of households

Incomes outlook: Falling incomes in the poorest half of working-age households & rising inequality

The outlook for living standards and inequality TAP: Health Equality seminar David Finch July 2017 @ resfoundation @davidfinchrf

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