Squeezed Britain

1. ……………………………………………………………………………………………………..…………………………………………………………………………………………………….. Squeezed Britain James Plunkett Director of Policy @jamestplunkett

2. …………………………………………………………………..………………………………………………………………….. • Trends in incomes and income inequality • Why? The labour market and low wage work • Implications for housing @jamestplunkett

3. …………………………………………………………………..………………………………………………………………….. • Trends in incomes and income inequality • Why? The labour market and low wage work • Implications for housing @jamestplunkett

4. The squeeze started long before 2008 …………………………………………………………………………………………………….. Long-term income trends Real household disposable income per head, 1955-2011 Source: ONS, constant 2009 prices @jamestplunkett

5. Young people have fared particular poorly ………………………………………………………………….. Wage declines for the young Real wage growth 2003-10 by age and gender All 30-60 Male 30-60 Female 30-60 All 16-29 Female 16-29 Male 16-29

6. Pay for those at the top has been rising more quickly than for those lower down …………………………………………………………………………………………………….. Long-term wage trends Weekly pay across the wage distribution @jamestplunkett

7. The top has moved away from the bottom …………………………………………………………………………………………………….. Gap between the top and bottom Ratio of weekly pay at the 10th percentile to the 90th percentile

8. Inequality at the top has continued to rise, but in the bottom half income inequality has stopped rising …………………………………………………………………………………………………….. Inequality – a game of two halves Ratio of weekly pay at the 10th/50th percentile and the 90th/50th percentile Ratio between the middle and the top Ratio between the middle and the bottom @jamestplunkett

9. The top 0.1 per cent have detached from the rest …………………………………………………………………………………………………….. The soaring incomes of the top 0.1 per cent Average income of top 0.1 and bottom 90 per cent, 2010 prices, 1908–2008 @jamestplunkett

10. The top 0.1 per cent have detached from the rest …………………………………………………………………………………………………….. The soaring incomes of the top 0.1 per cent Average income of top 0.1 and bottom 90 per cent, 2010 prices, 1908–2008 @jamestplunkett

11. The top 0.1 per cent have detached from the rest …………………………………………………………………………………………………….. The soaring incomes of the top 0.1 per cent Average income of top 0.1 and bottom 90 per cent, 2010 prices, 1908–2008 @jamestplunkett

12. Income trends and inequality have changed ………………………………………………………………….. • From a world in which GDP growth leads to broadly rising incomes • To a world of stagnation even during times of growth – particularly for the young • From a world of generally rising inequality • To a world in which a large swathe of people fall further behind the very top @jamestplunkett

13. …………………………………………………………………..………………………………………………………………….. • Trends in incomes and income inequality • Why? The labour market and low wage work • Implications for housing @jamestplunkett

14. Low pay has risen steadily since the mid-1970s …………………………………………………………………………………………………….. Long-termtrends in low pay and extreme low pay Percentage of all employees below two thirds and half of median pay, 1968-2011 1970 2012 @jamestplunkett

15. Low pay has risen steadily since the mid-1970s …………………………………………………………………………………………………….. Long-termtrends in low pay and extreme low pay Percentage of all employees below two thirds and half of median pay, 1968-2011 1970 2012 @jamestplunkett

16. Low pay has risen steadily since the mid-1970s …………………………………………………………………………………………………….. Long-termtrends in low pay and extreme low pay Percentage of all employees below two thirds and half of median pay, 1968-2011 1970 2012 @jamestplunkett

17. Britain is in danger of creating a two tier workforce ………………………………………………………………….. • In 1975, part-time workers made up just 30 per cent of low-pay – now they make up 58 per cent • In 2000, 8 per cent of low paid workers were on a temporary contract, now 13 per are • Since 2009, self-employment is up 400,000 to 4.2m but annual income for the self-employed is down from £16,100 in 2002 to £11,900 in 2011 • Of Britain’s 5 million low-paid workers, 3 million are women and 2 million men • Whole sectors of the UK economy are dominated by low pay.  68 per cent of workers in hotels and restaurants earn below the Living Wage @jamestplunkett

18. Middle-skilled jobs are in decline …………………………………………………………………………………………………….. Projected jobs growth, 2010-2020 Managers, senior officials Professional Associate professional Admin, secretarial Skilled trades Process, machine operatives Sales and customer service Elementary Caring and leisure @jamestplunkett

19. Wages have fallen behind productivity …………………………………………………………………………………………………….. UK hourly earnings and labour productivity, 1970–2010 @jamestplunkett

20. Big changes in the labour market are changing the face of inequality ………………………………………………………………….. • More working people struggling to get by – not just those at the very bottom • Harder for people to get access to top jobs • But…not all depressing! • The UK does create (until 2008!) good jobs and wealth – and now signs that GDP growth is returning – if only we can find a way to share the proceeds out @jamestplunkett

21. …………………………………………………………………..………………………………………………………………….. • Trends in incomes and income inequality • Why? The labour market and low wage work • Implications for housing @jamestplunkett

22. …………………………………………………………………..………………………………………………………………….. Hard question! • Trick is to adapt – not just repeat approaches of the past @jamestplunkett

23. Homeownership is still the predominant tenure …………………………………………………………………………………………………….. #hometruths

24. But the picture looks very different for under 35s …………………………………………………………………………………………………….. #hometruths

25. ……………………………………………………………………………………………………..…………………………………………………………………………………………………….. James Plunkett Director of Policy @jamestplunkett