This chapter addresses some of the main economic and demographic and other changes that have occurred in Britain over the last 30 years and focuses on the changes that are most likely to affect directly lifetime outcomes of taxes and benefits – ageing, relationships, work and earnings and related matters. It specifically outlines the main themes of change over time in terms of population, household formation and the economy since the 1970s. The British population grew by 7.6% from 55 millon to 59 million between 1979 and 2006. The longevity of the British population has shown significant...

This chapter addresses some of the main economic and demographic and other changes that have occurred in Britain over the last 30 years and focuses on the changes that are most likely to affect directly lifetime outcomes of taxes and benefits – ageing, relationships, work and earnings and related matters. It specifically outlines the main themes of change over time in terms of population, household formation and the economy since the 1970s. The British population grew by 7.6% from 55 millon to 59 million between 1979 and 2006. The longevity of the British population has shown significant impacts on social provision and the funding of pensions. Marriage and divorce rates both reflect and drive other changes. The growing economy has produced prolonged employment growth across cyclical fluctuations. Real earnings growth has been experienced by most but this is accompanied by increasing earnings inequality.