The UK has faced almost 10 years of falling living standards. Projections say poverty and inequality are on the rise. And there is still a huge hole in the public finances which limits, for now, the scope for public spending to bring solutions. So it is easy to be gloomy. But too often politicians sound as if they no longer believe that government can rise to these challenges.
This report shows there is hope. It presents the findings of a quantitative assessment of the prospects for living standards and inequality over the coming years, using new modelling based on projections from the Office for Budget Responsibility (OBR) and the Office for National Statistics (ONS).
The research shows that plausible and affordable government intervention can make a massive difference to the living standards of typical households and to future levels of poverty. But it also reveals that inaction will lead to stagnant living standards and a huge rise in poverty and inequality.