A new study co-authored by ISER’s Professor Mike Brewer for the Resolution Foundation finds society is increasingly polarised.
Who Gains From Growth? commissioned by the Resolution Foundation and produced by the Institute for Fiscal Studies and the Institute for Employment Research, received widespread coverage this week, revealing a typical low income family will see its net income fall by 15 per cent by 2020, while those in the top 50 per cent of households can expect to see their living standards grow.
Professor Brewer told The Observer :
“This analysis confirms the strong currents that will be pushing against income growth in the next 10 years, even once a recovery in GDP takes hold. Britain looks likely to see continuing polarisation in our labour market as more high-and low-paid jobs are created, skewing the distribution of income growth towards higher income households.”
“Meanwhile, support through the tax and benefit system is set to fall over the long-term, meaning that lower income households will tend to fall behind.”