IFS Zooms In: The Economy

Conflict in the Middle East has pushed up energy prices in the UK. Even if the war ends soon, prices may not return to pre-war levels, and government could still face pressure to support households.But the problem runs deeper than the current crisis. Even before the latest shock, the UK had some of the highest electricity prices in the developed world. Why is electricity so expensive here? How much of the problem is down to gas? Are renewables making bills cheaper or more expensive? And if government wants to cut electricity prices, what can it actually do?Helen Miller is joined by Dieter Helm, Professor of Economic Policy at the University of Oxford, and Peter Levell, Deputy Research Director at IFS, to discuss Britain’s energy mix, the costs of renewables, net zero targets, and how policy should respond to energy price shocks.Become a member: https://ifs.org.uk/individual-membershipFind out more: https://ifs.org.uk/podcasts-explainers-and-calculators/podcasts

Local government affects almost every part of our daily lives: bins, roads, planning, housing, schools, social care, public health, libraries, parks and more. But despite this, local elections are often discussed mainly as a test of national politics - with far less attention paid to what councils actually do, what councillors can change, and why so many councils are under such severe financial pressure.In this episode, we ask what local government is responsible for, how councils are funded, and why rising funding has not been enough to keep up with rising demand. We look at the pressures from social care, homelessness, SEND and other statutory services, and ask what it really means when a council is described as effectively bankrupt.Helen is joined by David Phillips from the Institute for Fiscal Studies and Aileen Murphie, honorary Professor at Durham University, and formerly at the Department for Communities and Local Government, and the National Audit Office.Become a member: https://ifs.org.uk/individual-membershipFind out more: https://ifs.org.uk/podcasts-explainers-and-calculators/podcasts

In a few weeks, voters in Wales will choose the next Welsh Government in what could be a historic election. With Labour’s long dominance under pressure, this episode examines the fiscal backdrop to the campaign and the difficult choices facing whoever takes power.Helen is joined by Joe Rossiter, Co-Director of the Institute of Welsh Affairs, and IFS economist David Phillips, to discuss how Wales is funded, how the block grant from Westminster has changed over time, and how devolved tax powers have — and have not — been used. They assess the state of Welsh public services, ask whether Wales should have more powers over tax, spending and borrowing, and explore the constraints facing the next Senedd.They also look at what the parties are promising, where the main dividing lines lie, and why many of the biggest trade-offs are still not being clearly spelled out.Become a member: https://ifs.org.uk/individual-membershipFind out more: https://ifs.org.uk/podcasts-explainers-and-calculators/podcasts

Scotland receives significantly more funding per person for devolved public services than England, helping to pay for policies like free university tuition and smaller school class sizes. But despite that advantage, performance in parts of health and education remains under pressure, and Scotland’s fiscal outlook is becoming tighter.In this episode, Helen is joined by Mairi Spowage of the Fraser of Allander Institute and IFS Associate Director David Phillips to unpack the big economic and fiscal questions hanging over the Scottish Parliament election. They explain what powers are devolved, where Scotland’s money comes from, how tax and benefit choices have made the system more progressive, and why the next Scottish Government will face difficult trade-offs.They also discuss Scotland’s public service performance after Covid, the risks created by recent budgeting habits, and the issues politicians may prefer not to talk about as manifesto season begins.Become a member: https://ifs.org.uk/individual-membershipFind out more: https://ifs.org.uk/podcasts-explainers-and-calculators/podcasts

The state pension age is rising. It is currently 66, and by 2028 it will reach 67. But what does that actually mean for the people approaching retirement, and does it really mean everyone will have to work longer?In this episode, Helen is joined by Jonathan Cribb and Heidi Karjalainen to examine one of the biggest questions facing the pensions system: how high should the state pension age be? They discuss why it has been rising, what the state pension is designed to do, and how changes to the pension age affect work, retirement and government spending.They also look at who is able to keep working into their late 60s, who is not, and whether a single state pension age makes sense for everyone. Along the way, they explore how the UK compares with other countries, what happens to people who cannot work up to pension age, and whether the state pension system is financially sustainable in the long run.Become a member: https://ifs.org.uk/individual-membershipFind out more: https://ifs.org.uk/podcasts-explainers-and-calculators/podcasts

For decades, pensioners were one of the poorest groups in Britain. That is no longer true. Today, the average pensioner is at least as well off as the average working-age person, and in wealth terms many are far better off.In this episode, Helen Miller is joined by Jonathan Cribb and Heidi Karjalainen to examine what the data really say about pensioner incomes, wealth and living standards. Where does pensioners’ money come from? How much is driven by the state pension, private pensions and housing wealth? Which pensioners are still struggling? And how do today’s retirees compare both with their parents’ generation and with younger people who are still working?They also look ahead to the future: will younger generations enjoy the same living standards in retirement, or are higher house prices, lower homeownership and the decline of defined benefit pensions changing the picture? This episode sets out the big story of how pensioners’ finances have changed, and what it means for the future.Become a member: https://ifs.org.uk/individual-membershipFind out more: https://ifs.org.uk/podcasts-explainers-and-calculators/podcasts