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Resolution Foundation
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Resolution Foundation

UK think tank analysing living standards for low- and middle-income households.

Last refreshed: 27 July 2026

Key Question

Why do frozen tax thresholds erase early income gains, according to the Resolution Foundation?

Timeline for Resolution Foundation

#1 29 Jun

Projected non-pensioner incomes rising 1.2% in 2026-27

Is Britain Actually Broke?: One adult in 369 went formally insolvent
#1 31 Dec
View full timeline →

Background

The Resolution Foundation is a UK think tank analysing living standards for low- and middle-income households, distinct from broader Westminster fiscal debate. In a July 2026 assessment of British public finances, it projected typical non-pensioner incomes rising 1.2% in 2026-27, with the poorer half of non-pensioner families gaining 4.7%, before growth stagnates again later in the decade .

Founded in 2005, the foundation positions itself as a non-partisan research institute rather than a party platform, publishing regular work on pay, tax and inequality that informs parliamentary committees and government departments. It is frequently read alongside the free-market Institute of Economic Affairs in UK fiscal coverage, offering a distributional counterpoint to aggregate-spending arguments.

Its July 2026 work traced the mechanism by which early income gains are eroded: frozen income tax thresholds combined with rising council tax and housing costs, which turns short-term gains into later-decade stagnation for ordinary households . Because its research spans pay, tax, pensions and housing, its findings recur across UK economic, housing and welfare coverage well beyond any single briefing.

Common Questions
What does the Resolution Foundation do?
It is a UK think tank that researches living standards, pay, tax and housing for low- and middle-income households.Source: Resolution Foundation
How much will UK incomes rise in 2026-27, according to the Resolution Foundation?
It projects typical non-pensioner incomes rising 1.2% in 2026-27, and 4.7% for the poorer half of non-pensioner families, before stagnating again later in the decade.Source: Resolution Foundation
Why do UK households feel poorer despite rising incomes?
The Resolution Foundation says frozen tax thresholds combined with rising council tax and housing costs erode early income gains later in the decade.Source: Resolution Foundation
Is the Resolution Foundation a left-wing think tank?
It presents itself as a non-partisan research institute, though its focus on low- and middle-income living standards is often read as a centre-Left counterweight to free-market think tanks.
Source Material