Switching 2p from National Insurance to Income Tax could raise £6 billion while protecting workers’ pay packets. Here's what you need to know 👇 👇 👇

The upcoming Budget presents various challenges. @ruthcurtice.bsky.social explains our recommendations for reform and revenue raising ⤵️

Switching 2p from National Insurance to Income Tax would bring the rate of tax paid by pensioners closer to that paid by working-age people. Even so, pensioners with incomes below £40,000 would still be better off next year than this year, due to upcoming increases to the state pension age ⤵️

🏘️ 21,000 dwellings were approved in the year to June 2025, down by 7% on the previous year, and now at the lowest level since 2014. Read our blog on the latest planning data⤵️ buff.ly/WLt3Z6e

Why do we tax earnings from employment more than income from rental properties? Adam Corlett explains why we should start making tax more consistent 👇

According to HMRC estimates, the small business Corporation Tax gap has ballooned from £5 billion to £15 billion. Learn more ⤵️ buff.ly/uLWun7f

The value of Fuel Duty is now at historic lows, having fallen by 23p per litre (or a third) in real terms over the past decade. It would cost £5 billion *per year* to continue the freeze by the end of the decade. Instead, smaller quarterly increases should be introduced.

Switching 2p from National Insurance to Income Tax would raise £6 billion while protecting pay packets. The increase in the state pension would mean that all pensioners with incomes below £40,000 would still be better off next year than this year. Read 'Call of duties' now ⤵️ buff.ly/uLWun7f

"The tax system gets worse and worse over time." @danneidle.bsky.social makes the case for big-picture tax reform.

Switching 2p from National Insurance to Income Tax could raise £6 billion while protecting workers’ pay packets. Here's what you need to know 👇 👇 👇

Recent Resolution Foundation research found an increase in savings among low and middle income households. @ruthcurtice.bsky.social explains why that could (in part) be a cause for concern... Catch up on the full discussion here 👉 buff.ly/NA1WoQU

This is v clear on why Resolution's NI/income tax switcheroo (which govt has already ruled out) makes sense - "ensuring that lawyers and landlords pay a similar rate of tax to their clients and tenants".

The upcoming Budget presents various challenges. @ruthcurtice.bsky.social explains our recommendations for reform and revenue raising ⤵️

The Government has allocated £13 billion to the Warm Homes Plan. But what should it do with the money? Priority should be given to the poorest households who spend twice as much of their family budgets on energy bills as the richest households. Read more👉 buff.ly/PGjbi38

Report out on tax options for the Budget. 2p income tax rise alongside 2p national insurance cut would mean no tax rise for an employee whose income comes from a job. With employment overtaxed at the moment, workers pay packets should be protected and distortions in the tax system removed.

And that's a wrap! You can watch back our event: Call of duties: What should the Chancellor’s tax strategy be for the Budget? with @ruthcurtice.bsky.social @adamcorlett.bsky.social @danneidle.bsky.social & Lord Willetts here www.resolutionfoundation.org/events/call-...

The growth of National Insurance over time makes it more important than ever to worry about its design. Read 'Call of duties' now, to learn why we propose switching 2p from National Insurance to Income Tax 👉 buff.ly/uLWun7f

Speaking at our event @danneidle.bsky.social says the UK's very high VAT threshold has led to a 'curve of doom' with tens of thousands of business bunched below the treshold to avoid paying VAT. They don't expand or take on apprentices as a result. It's an anti-growth cliff-edge that must be cut.

Speaking at our event, David Willetts says that our 2p tax switch is an effective way to protect working people who have been hit hardest recent labour market turmoils and longer term economic stagnation. This is the right direction for our tax system...

Kicking off our event @adamcorlett.bsky.social sets out key principles for the upcoming Budget - Avoid big shocks to inflation, jobs or business investment​ - Add to fiscal credibility​ - Address problems in existing tax system​ - Prioritise workers (employees)​ - Help w/ other Government priorities

And we're go! Watch our event Call of Duties, in which we discuss what the Chancellor's tax strategy should be in an upcoming Budget that is likely to require significant tax rises. www.resolutionfoundation.org/events/call-...

What should the Chancellor’s tax strategy be for the Budget? Join our live discussion here, starting in 15 minutes, to discuss her options for revenue and reform ⤵️

Switching 2p from National Insurance to Income Tax could raise £6 billion, while protecting workers’ pay packets. This would mean that landlords pay a similar rate of tax on their rental income as their tenants do on their employment income. Learn more ⤵️ buff.ly/uLWun7f

Terrific chart showing it’s often best NOT to get your money from working! Lower Nat Insurance & higher Income Tax could start to fix that & raise some cash, too

The Chancellor should protect workers’ pay packets and level the playing field on how different forms of income are taxed. As things stand, wages (and some dividends) are taxed more heavily than many other sources of income. Read 'Call of duties' now ⤵️ buff.ly/uLWun7f

📣 New analysis published today 📣 Switching 2p from National Insurance to Income Tax could raise £6 billion, at the same time as protecting workers’ pay packets. See our full proposals for revenue and reform at the Autumn Budget here ⤵️ buff.ly/uLWun7f

👍 Good news: consumer debt (e.g. credit cards) is declining. 👎 Not-so-good news: Priority debt (energy, rent, Council Tax) is on the rise. @feliciao.bsky.social explains ⤵️

How can the Government help make heat pumps cheaper to run? Rebalancing levies onto gas provides the biggest incentives to move to a heat pump. Read more ➡️ buff.ly/pteIAer

The number of households behind on at least one priority bill has been creeping up over time. While the poorest fifth are most likely to be affected, the prevalence of bill arrears crept up the income distribution during the cost of living crisis. Read more: buff.ly/gx6AQzR

With trust in politicians already low, @robfordmancs.bsky.social argues that the government can't wait for the effects of long-term reform to trickle through. Catch up on the full discussion with @ukandeu.bsky.social on the policy challenges facing the government this autumn 👇 buff.ly/Al4n9sk

On average, low-to-middle income households have less consumer debt than before the financial crisis. The average amount owed (across all low-to-middle income families, not just those with debts) fell by 14 per cent between 2006-08 and 2020-22.

Britain has seen an acute living standards slowdown over the past 20 years. This has affected incomes across the distribution. A typical family today would be £20,000 richer if incomes had continued growing at the same rate since 2005, when the Foundation was founded. ⤵️ buff.ly/NuhNFF9

To boost the UK economy we need to be 'tough on growth, tough on the drivers of growth' argues Prof David Bailey. Catch up 👇 buff.ly/6DaUk35

Low savings make life more difficult for low-to-middle income families. If we exclude current account balances (which are often earmarked for future day-to-day spending), the share of the poorest families with less than £1,000 in savings rises to three-quarters. Read more ➡️ buff.ly/A8msGuU

Over the past two decades, we have worked to put living standards at the heart of political debates through forensic research and hard-headed policy work. As we marked our 20th anniversary last week, we reflected on the past and future of living standards in Britain. 👉 buff.ly/NuhNFF9

The Chancellor has set the date for one of the most challenging second Budgets in living memory. What should be the tax strategy for the upcoming Budget and beyond? Join @danneidle.bsky.social, Caroline Wheeler, and @ruthcurtice.bsky.social tomorrow to discuss ⤵️ buff.ly/qwa9eNG

Almost half (47%) of families in the bottom half of the income distribution have less than £1,000 in liquid savings, almost three times the proportion as the top of half. These are the sort of funds that would be used to cover urgent needs - like a car break-down of broken boiler.

This week's Top of the charts is an anniversary special 🎉 @ruthcurtice.bsky.social takes us through 5 key charts that unpack what has been happening to living standards over the last 20 years. Catch up here ➡️ buff.ly/Ov91Vf7

How do Londoner's commuting habits differ from the rest of the country? In last week's Top of the charts, we had a look at the data. London’s commuting habits differ significantly to other big cities in Britain, let alone the rest of the country buff.ly/jzmDZ2U

🏘️ 221,000 dwellings were approved in the year to June 2025, down by 7% on the previous year, and now at the lowest level since 2014. Read yesterday's blog on the latest planning data⤵️ buff.ly/WLt3Z6e

The dominance of energy bills in driving inflation in recent years has meant that poorer households have faced significantly higher inflation than richer households. @lalithatry.bsky.social explains ⤵️

Housing is most families' largest expense making it crucial for living standards. But what's happening with housing in the UK? Explore our interactive indicator charts to find out what's going on with housing affordability, quality, and more ⤵️ buff.ly/X5xMmnF

Poorer families reduced their consumer credit balances as the country cut back on borrowing after the financial crisis. Between 2009 and 2011, average debt per person fell by a quarter (23 per cent) in just two years, a reduction of more than £1,000 in today’s prices.

The Resolution Foundation turns 20 this week, and we've taken a look back at how living standards have changed since the Foundation was set up. This thread takes a look at five key charts on this - and you can read the full anniversary report now ⤵️ buff.ly/NuhNFF9

Among those with consumer debt, the typical amounts owed fell sharply in the pandemic for rich & poor households. While many markers of material deprivation ticked up at this time, the hardship experience by poorer households seems not have to materialised as a widespread accumulation of new debt.

🚨 Even more housing data alert Today’s housing supply indicators show a welcome uptick in the number of dwellings started. But data released yesterday showed planning approvals dropping to a record low in Q2 2025, a worrying sign. Read our blog on this here: buff.ly/WLt3Z6e

This week's Top of the charts is an anniversary special 🎉 @ruthcurtice.bsky.social takes us through 5 key charts that unpack what has been happening to living standards over the last 20 years. Catch up here ➡️ buff.ly/Ov91Vf7

Key point from James on the public sector finances this morning. Receipts weakness important for the forecast. One more month of data will make it into OBR calcs.

Over the past two decades, the Resolution Foundation has worked to put living standards at the heart of political debates through its forensic research and hard-headed policy work. As we mark our 20th anniversary, we reflect on the past and future of living standards in Britain. 👉 buff.ly/NuhNFF9

The number of households behind on at least one priority bill has been creeping up over time. While the poorest fifth are most likely to be affected, the prevalence of bill arrears crept up the income distribution during the cost of living crisis. Read more: buff.ly/A8msGuU