Social mobility

Over the last two decades, Sure Start Children’s Centres (and their predecessors, Sure Start Local Programmes) have been one of the most important policy programmes in the early years in England. These centres operate as ‘one-stop shops’ for families with children under 5, bringing together a range of support including health services, parenting support programmes, and access to childcare and early education.

Recent IFS work shows that students from disadvantaged backgrounds see some of the largest financial benefits from going on to university. But these students are also less likely to attend university than their better-off peers who get exactly the same grades as them. And, even among students with the same grades attending the same HE programme, those from disadvantaged backgrounds still on average go on to earn less.

Inheritances have been growing as a share of national income in the UK since the 1970s. This trend looks set to continue as generations at older ages

We investigate differences in the returns to undergraduate degrees by socio-economic background and ethnicity using the Department for Education’s Longitudinal Education Outcomes (LEO) data set.

This report seeks to set out the potential effects of the Covid-19 pandemic on inequalities in the UK. The pandemic has affected inequalities in education, training, wages, employment and health, including how these vary by gender, ethnicity, and across generations.

The COVID-19 crisis has brought to the fore increasing concerns about inequalities not only between different population groups – such as the gap between the rich and poor, young and old, and different ethnic groups – but also between people living in different places. Even prior to the crisis though, there was a sense that the UK is not only a highly geographically unequal country, but also an increasingly geographically unequal one.

Recent decades have seen rising wealth-to-income ratios. In England, increases in wealth have been concentrated among older generations. Those born in the 1980s have accumulated no more wealth than those born in the 1970s had done by the same age, but the parents of those born in the 1980s hold 40% more wealth than the parents of those born in the 1970s held at the same age. One consequence is that inherited wealth is on course to be a much more important determinant of lifetime resources for today’s young than it was for previous generations. New work by IFS researchers, funded by the Nuffield Foundation and released today, estimates that the average (median) inheritance of the 1960s generation will be worth 8% of average lifetime earnings for that generation, rising to 14% of lifetime earnings for the 1980s-born generation.

Younger generations are accumulating no more wealth in the first decades of their working lives than did those born before them. This is a source of increasing concern. Our research suggests that this lower wealth accumulation need not be due to a change in attitudes among the young - it's not just because they are blowing all their money on avocado toast. Rather it could be because of underlying economic changes - earnings growth has stalled and the returns on savings and housing have fallen. Under these circumstances it is perfectly predictable that younger generations would build up less wealth; indeed, it is reasonable for them to have done so. Given this, policies trying to induce more saving may be counterproductive. The problem is with underlying economic trends, not with the behaviour of young people.