Louise Murphy

@louisemurphy.bsky.social

Senior Economist at the Resolution Foundation, focusing on employment, young people and health | views my own

The interim report of the Timms Review of PIP was published this morning, and its conclusion is stark: "PIP is not working." Here's a thread summarising what it says, and what we might expect from the final report in the autumn. 🧵

This morning’s data shows a weak labour market: unemployment remains high and real wages are barely growing. The monthly LFS unemployment data is volatile but the big picture is that unemployment has been climbing for the past few years and stood at 4.9% in the three months to April.

Chart showing - Unemployment rate (Labour Force Survey): UK

If you need persuading of the importance of education funding / structures to UK's NEET problem, this chart was my best attempt at making that point. UK has *higher* % of YP in straight-employment than almost all OECD countries. But still manages higher NEET rates because ed participation so low

Nye Cominetti @nyecominetti.bsky.social · 3mo ago

2. Education. Mechanically, reducing the NEET rate means getting more young people into education or work. Almost all the countries with lower NEET rates than the UK do this via higher education participation. So that seems the main place to look for improvement.

The UK's run of feel-good economic data came to an abrupt end this morning. The flash composite PMI index for May suggests private-sector activity shrank on the month. Worryingly, this happened despite pre-emptive buying propping up manufacturing. Services shrank at the fastest rate since 2021.

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Bank of England follows the Fed and holds its policy rate at 3.75% given uncertainty from the conflict in the Middle East. BoE hints it will be patient on raising rates but the bigger issue is its assessment of the impact of the war. Thread on all that to follow...

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New #ONS estimates of #families and #households in the #UK, up to 2025, were released today (www.ons.gov.uk/peoplepopula...). The most eye-catching finding is the trend towards living with parents, especially so for young men. Here’s a thread with some key takeaways 🧵:

Families and households in the UK - Office for National Statistics

Estimates of families (with and without children) and household types, including people living alone in the UK in 2025.

ons.gov.uk

NEET estimates for Q4 2025 from ONS this morning. We already pretty much had the picture for Q4 from the main stats release last week (rising unemp) but let's run through the charts. And then zoom out. First - the number crept up ever so slightly. Importantly for comms the number remains below 1m.

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Tomorrow the ONS will publish new data on the number of young people who are not in education, employment or training (NEET). This is important – and not just because the number is very close to one million…

Families across Britain have experienced two decades of poor income growth, and the outlook for the rest of the 2020s isn't much better. In fact, the OBR's projection for income growth for the rest of this decade is worse than any of its previous ones...

Chart showing: Annual change in Real Household Disposable Income per household in various OBR forecasts

Look, I know there's a lot going on in the news right now. But the MPC decision today was actually quite interesting! They were only one vote away from delivering a cut that wasn't on the cards at all, and they now think inflation will not just drop sharply this year but stay low. Thread below ⤵️

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Good news - DWP has finally published UC Health data, splitting out those who have migrated over from legacy benefits (ESA). What does the data tell us? ESA migration accounts for most of the rise in UC Health claims over the past year - but new claims explain more of the rise since the pandemic.

The Govt is undertaking the Timms review, assessing whether PIP is “fair and fit for the future”. But what if we could learn lessons from a nation within the UK that had successfully implemented a new adult disability benefit just three years ago? 🤔 www.resolutionfoundation.org/publications...

Delivering dignity? • Resolution Foundation

When the Scottish Government introduced the Adult Disability Payment (ADP) in 2022 to replace Personal Independence Payment (PIP), it set out to do things differently. [i] Although the two benefits ha...

resolutionfoundation.org

This Budget was undoubtedly a progressive one. The combination of tax rises and giveaways since last year’s Budget means that incomes for households in the bottom half of the distribution rise by 1.0 per cent while incomes for the richer half fall by 0.7 per cent. But beneath the surface...

Chart showing: Change in annual income in cash terms (left axis) and as share of income (right axis), as a result of tax and benefit policy changes announced since Autumn Budget 2024, by income vigintile: UK, 2029-30

New net migration figures show that international net-migration falls to 204k (like 2000s average). Partly reflects ONS revisions to how they calculate the figure. This is a big difference compared to the latest ONS projections, which don't forecast impact of policy or use the latest data.

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The Chancellor has scrapped the two-child limit, benefitting more than half a million families. In April 2025, out of families impacted by the limit: - 6 in 10 had 3 children. - 6 in 10 had at least one person in work. - And 6 in 10 are receiving a health or disability benefit.

Chart showing proportion of families impacted by the two child limit