
Resolution Foundation
UK think tank analysing living standards for low- and middle-income households.
Last refreshed: 27 July 2026
Why do frozen tax thresholds erase early income gains, according to the Resolution Foundation?
Timeline for Resolution Foundation
Projected non-pensioner incomes rising 1.2% in 2026-27
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Is Britain Actually Broke?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.