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2025-09-30-accounts

Registered number: 05588883 Charity number: 1114839

THE RESOLUTION FOUNDATION

(A Company Limited by Guarantee)

TRUSTEES' REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 SEPTEMBER 2025

THE RESOLUTION FOUNDATION

(A Company Limited by Guarantee)

CONTENTS

Page
Reference and Administrative Details of the Charity, its Trustees and Advisers 1
Trustees' Report 2 - 12
Independent Auditors' Report on the Financial Statements 13 - 16
Statement of Financial Activities 17
Balance Sheet 18
Statement of Cash Flows 19
Notes to the Financial Statements 20 - 39

THE RESOLUTION FOUNDATION

(A Company Limited by Guarantee)

REFERENCE AND ADMINISTRATIVE DETAILS OF THE CHARITY, ITS TRUSTEES AND ADVISERS FOR THE YEAR ENDED 30 SEPTEMBER 2025

Trustees Clive Cowdery, Chair of Trustees
Christina Alexandrou
Pat Butler
Danuta Gray
Kate Josephs
Siobhan Moynihan, Finance lead (appointed 12 May 2025)
Patrick Stevens, Treasurer (resigned 12 May 2025)
Adair Turner
Company registered
number
05588883
Charity registered
number
1114839
Registered office
2 Queen Anne's Gate
London
SW1H 9AA
Company secretary
Jayne Desmond
Independent auditors
HaysMac LLP
10 Queen Street Place
London
EC4R 1AG
Bankers
Natwest Bank plc
St Paul's Branch
Juxon House
98 St Paul's Churchyard
London
EC4M 8BU
United Trust Bank Ltd
80 Haymarket
London
EC4M 6YH
HSBC UK
60 Albert Road
Middlesbrough
TS1 1RS

Page 1

THE RESOLUTION FOUNDATION

(A Company Limited by Guarantee)

TRUSTEES' REPORT FOR THE YEAR ENDED 30 SEPTEMBER 2025

The Trustees present their annual report together with the audited financial statements of The Resolution Foundation for the 1 October 2024 to 30 September 2025. The Annual Report serves the purposes of both a Trustees' report and a directors' report under company law. The Trustees confirm that the Annual Report and financial statements of the charitable company comply with the current statutory requirements, the requirements of the charitable company's governing document and the provisions of the Statement of Recommended Practice (SORP) applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS102) (effective 1 January 2019).

Since the Charity qualifies as small under section 382 of the Companies Act 2006, the Strategic Report required of medium and large companies under the Companies Act 2006 (Strategic Report and Directors' Report) Regulations 2013 has been omitted.

Page 2

THE RESOLUTION FOUNDATION

(A Company Limited by Guarantee)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 30 SEPTEMBER 2025

Objectives and activities

a. Objectives and aims

The Resolution Foundation is an independent think-tank dedicated to lifting living standards in the UK. We focus particularly on households with low and middle incomes; those on low pay or in precarious work; and those vulnerable to financial shocks. We also investigate fairness between the generations in our Intergenerational Centre.

We aim to provide rigorous analytical work, develop effective policy proposals, and use our expertise to affect direct change. We analyse the trends and outlook for living standards, including for different age groups, family types, and levels of household income and wealth, and seek to promote greater understanding of these. Our research focuses both on the specific areas of the economy that matter most for people’s living standards, including work and housing; and on economic growth and productivity as the route to sustainably higher living standards. We also examine the role of government in improving living standards including through taxes, social security and public services.

We inform public debate, alongside key decision makers in government, the private sector, and civil society. Alongside regular publications from our team on a range of policy issues, we hold a wide-ranging programme of events, hosting diverse speakers from academia, the voluntary sector and business, and regularly engage with politicians from across the political spectrum

The objects of the charity (as set out in the Memorandum and Articles of Association and amended by resolution on 26 May 2006 and 28 November 2019 in accordance with Article 36 of the Company's Articles of Association) are 1) to promote research and the education of the public into the economic and social sciences including, but without prejudice to the generality, the effect of economic, social and financial factors on the living standards at all stages of life of people benefiting from an income at or below the national average; and 2) to the extent resources of the charity are not required for object 1, to prevent and relieve poverty and to advance such other exclusively charitable purposes as the trustees see fit, including, but without prejudice to the generality, through social investment projects.

Our public benefit goal is to improve outcomes for people on low-to-middle incomes. We do this by undertaking and publicizing high-quality, rigorous research and policy analysis.

We maintain sector-leading research standards through a variety of methods including detailed internal quality assurance processes, peer review and external engagement on new or controversial areas of our research agenda. The conclusions of our publications are derived from the research we have undertaken, with significant counter arguments considered. Additionally, we maintain a clear focus on well-defined topics that are material to living standards in the UK and develop practical and effective policy proposals to tackle the issues we identify and bring about change.

In setting objectives and planning for activities, the Trustees have given due consideration to general guidance published by the Charity Commission relating to public benefit, including the guidance 'Public benefit: running a charity (PB2)'.

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THE RESOLUTION FOUNDATION

(A Company Limited by Guarantee)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 30 SEPTEMBER 2025

Objectives and activities (continued)

b. Our Approach

The Foundation prides itself on analytical rigour, and we strive to achieve standards of excellence in all our work. This commitment is matched by dedication to our core purpose, working to lift living standards in the UK. These twin pillars of rigour and purpose underpin everything we do. We also aim to ensure our approach is:

c. Our Funding

The Resolution Foundation is primarily funded by the Resolution Trust. We are also grateful for support from additional organisations including Citizens UK, Economic and Social Research Council (ESRC), European Climate Foundation, Friends Provident Foundation, the Health Foundation, Joseph Rowntree Foundation, Nationwide Building Society, the Nuffield Foundation, People’s Partnership, Trust for London, Ufi VocTech Trust, Unbound Philanthropy, and Wates Family Enterprise Trust which have enabled us to pursue project specific work during the year. We are committed to transparency and list all organisations from whom we receive a contribution of £3,000 and over in the notes of this report. Small additional sums are also received as donations or payment for ad hoc activity like speaking engagements.

d. Public benefit

The Trustees confirm they have complied with the duty in section 17 (5) of the Charities Act 2011 to have due regard to public benefit guidance published by the Charity Commission and guidance relating to public benefit and the advancement of education specifically. The Trustees ensure that all work undertaken is in line with the Foundation's charitable objects and aims.

Achievements and performance

a. Charitable activities

The charity's key objectives for 2024/2025 were:

• To inform public and policy debate on economic and fiscal policy by outlining the forecasts for and impacts on living standards, documenting the changes in the economic circumstances of low and middle income families in recent decades, and prescribing policy solutions to support low-to-middle income households;

• To continue to promote the implementation of Economy 2030 recommendations and to consider what further policy changes are needed to support robust economic growth that benefits all sections of society;

Page 4

THE RESOLUTION FOUNDATION (A Company Limited by Guarantee)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 30 SEPTEMBER 2025

Achievements and performance (continued)

• To establish a Workertech social investment fund aimed at improving conditions for those in low-paid or precarious work and to transfer oversight of the fund to Resolution Impact Ventures Ltd.

Incomes and inequality

We published our regular Living Standards Outlook, giving projections of income growth for the rest of the Parliament. We began a major new project (‘Unsung Britain’) on the changing circumstances of low-to-middle income Britain, covering work, housing, health and care, credit and debt, and income sources and income dynamics.

Job, skills and pay

We completed work on earnings volatility; continued a multi-year project on precarious work with a focus on foreign-born workers; and investigated what employers could do to boost the disability employment rate. We also continued to engage actively with the Employment Rights Bill (now Act) including publishing analysis of their economic effects and recommendations on the detail of implementation in our Low Pay Britain report. We continued to monitor the quality of labor market statistics and began to publish our own estimate of the employment rate. We began work on the ‘job ladder’ and how this varies for different types of worker. We looked at the changing labor market experience of low-to-middle income families.

Housing, wealth and debt

In our housing programme, we examined ethnic inequalities when it comes to housing costs; explored the relationship between England’s housing stock and population; and launched our quarterly housing indicators dashboard (with support from the Wates Family Enterprise Trust). On household wealth we produced a policy ‘deep dive’ focusing on the evidence for reforming the treatment of wealth in the working-age benefit system, and produced a wealth audit given a rare update of comprehensive survey data on wealth which included new analysis of wealth volatility.

Welfare and poverty

In 2024/25, much of our work focused on influencing the Government’s child poverty strategy. We published three key analytical contributions to this debate, examining housing costs, parental employment and income support, and then followed up with two targeted research outputs designed to highlight the incompatibility of the two-child limit with a meaningful child poverty reduction programme. We also analyzed Government proposals with respect to disability benefits reform; the Government’s approach to uprating; and the continued failure to repeg LHA rates to local rents.

Firms , productivity and trade

In March 2026 we published a new report examining the growing productivity gap between Britain and America. In April 2026 we responded to the Government’s Invest 2035 Green Paper, assessing its 10-year Industrial Strategy and published an Industrial Strategy ‘guide for practitioners’. We published work on the importance of dynamic alignment and set out how the Trump tariffs could affect UK living standards.

Intergenerational Centre

In November 2024 we published our sixth annual Intergenerational Audit, produced as part of the ESRC-funded Connecting Generations research programme. The audit examines the critical support older generations offer to younger ones, including housing assistance, childcare, and financial aid such as gifts and inheritances. It also sheds light on the unpaid care responsibilities that younger and middle-aged adults frequently provide, particularly for ageing parents. We also published a report in December 2024 contextualising recent changes in young people’s housing circumstances within longer-term trends.

Macroeconomic Policy Unit

Analysing a busy programme of Government fiscal events was again a key part of work in 2024/25. The Spring Statement in March, followed by the Spending Review in June, were key events that shaped the economic policy of the Government. We produced preview and response documents for both of these. In particular we

Page 5

(A Company Limited by Guarantee)

THE RESOLUTION FOUNDATION

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 30 SEPTEMBER 2025

Achievements and performance (continued)

produced major new analysis of both day-to-day and investment spending decisions and their implications for lower-income families. We also continued to use our Macroeconomic Policy Outlooks to focus on topical issues related to aggregate economic developments.

Net zero

We have continued our work on the distributional challenges of driving a fair transition to net zero. This has included several major new pieces of research. First, we considered how to reduce the emissions produced by the UK transport system. Second, we looked at how to the UK’s electricity system can be reformed to help achieve net zero emissions while keeping energy affordable for households. And third, we have assessed the challenges associated with that net zero poses for domestic heating, particularly how low-to-middle income families might be able to bring down costs.

Ventures

The Ventures team succeeded in establishing a new independent Workertech social impact fund, having secured commitments from foundation partners of £6.75m. The new operating company, Resolution Impact Ventures Ltd, was established to oversee the work of the Fund. Foundation investments made previously under the Workertech Partnership programme began being transferred into the Fund vehicle, and the Foundation holds an investment stake in the new Fund as a result. This venture investment fund will continue to invest in early-stage technology ventures that can improve work for those in low-pay or in precarious work, with unstable incomes and less access to training. Alongside this work, the Foundation continued to support the development of worker-centric technologies more broadly with events and resources to support the Workertech ecosystem.

b. Fundraising activities and income generation

The Charity does not actively solicit donations directly from the public and does not use third parties for fundraising. Therefore it is not registered with the Fundraising Regulator and does not subscribe to any fundraising codes of practice. Where donations from individuals or trusts and foundations are received, the Charity would ensure personal data is appropriately protected. The Charity received no complaints within the year regarding fundraising.

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THE RESOLUTION FOUNDATION

(A Company Limited by Guarantee)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 30 SEPTEMBER 2025

Financial review

a. Financial position

The Financial statements show income for the year of £4,199,034 (2024: £4,046,920) with expenditure in the year of £3,479,451 (2024: £3,738,286) .

The income to the charity comprise donations from the Resolution Trust which was established by Sir Clive Cowdery in 2007 and provides ongoing funding for the Resolution Foundation. Other income include donations and payments from charitable trusts and other organisations for project specific work, bank interest received in the year, an administration fee for work carried out on behalf of the Resolution Trust and Resolution Impact Ventures, and other miscellaneous donations and payments for ad hoc activity like speaking engagements.

In June 2022, the Trustees of the Resolution Trust agreed minimum funding for the Foundation of £2,500,000 for 2022/2023, £2,500,000 for 2023/2024, and £2,500,000 for 2024/2025. In January 2023, the Trustees of the Resolution Trust agreed to increase this minimum funding for the Foundation to £2,560,000 for 2022/2023, £2,560,000 for 2023/2024, and £2,560,000 for 2024/2025. In 2024, the Trustees of the Resolution Trust agreed to provide funding for the Foundation of £2,560,000 for 2025/2026 and confirmed a new three-year funding agreement for 2026/2027 to 2028/2029 would be agreed before October 2026. .

At 30 September 2025, the Charity had free reserves totalling £2,283,823 (2024: £2,038,879) . In addition, funds held for restricted purposes amounted to £558,045 (2024: £83,406) .

b. Reserves policy

The Trustees have received as part of their funding commitment from the Resolution Trust a commitment that the Trust will meet any costs associated with the winding up of the Resolution Foundation. In addition to the Trust's commitment, the Trustees of the Foundation consider it wise to maintain a level of reserves commensurate with covering immediate commitments. As such, the Trustees consider the optimal level of free reserves to be at least three months running costs or c£1,000,000. Trustees manage income and expenditure prudently in order to deliver at least that level of free reserves.

c. Future plans

The charity's key objectives for 2025/2026 are:

• To produce robust analysis and policy recommendations on how to improve living standards in the UK, especially for households with low and middle incomes, those on low pay or in precarious work, and those vulnerable to financial shocks.

• To inform public and policy debates on economic and fiscal policy by outlining the forecasts for and impacts on living standards, including how those forecasts and the impacts of policies vary across the income distribution and other characteristics.

The priorities outlined below represent the charity’s current plans; however the trustees will keep these under review and may adapt them in response to emerging opportunities, challenges, and the needs of beneficiaries.

PEOPLE

Work

We will continue to focus on practical policy responses to boost the living standards and wellbeing of Britain’s precarious and low-paid workers. For example, we will analyse how the new Adult Social Care Negotiating Body can get off the ground quickly so that it can deliver lasting improvements to the pay and conditions of England’s 1.5 million social care workers. Likewise, we will consider how the power of precarious workers in sectors such

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THE RESOLUTION FOUNDATION

(A Company Limited by Guarantee)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 30 SEPTEMBER 2025

as hospitality and retail can negotiate better terms and conditions. We will also produce a major piece of work looking at the pay penalty among graduates associated with coming from a disadvantaged socioeconomic background, considering the size and distribution of that penalty and an assessment of what factors are driving it. And, looking further ahead, we plan to consider the impact that AI is having on the labour market right now – focusing on which types of jobs are affected, as well as digging into the experience of those working in exposed industries.

Housing

In 2025/26, our housing research will be centred on two key themes. First, we will explore the relationship between growth and housing supply, analysing barriers to increased housebuilding and putting forward proposals for how these could be reduced. Second, we will consider if mortgage regulation has gone too far, and whether there is a case to loosen lending or for the state to step in more to help prospective first-time buyers.

Saving and debt

We will examine trends in pension savings and pensioner incomes in retirement, feeding into the new Pensions Commission which is due to publish its interim finding in the spring.

GOVERNMENT

Tax

Our tax work will focus on the ways in which tax policy can be used to raise revenue while also minimising the economic impact. Of particular interest in this context is how taxation of different forms of income can be more equal (reducing the penalty for employment) and what our approach should be to taxing assets, particularly household wealth and property.

Social Security

We will ensure that our social security research speaks to the critical issues that are high on the policy agenda for 2025/26. For example, we will analyse how the Government could improve outcomes for, and the wellbeing of, Universal Credit claimants; produce research that assesses how the benefits system could be reformed to support young people not in education, employment or training; and undertake a large piece of work reimagining working-age disability benefits with the aim of influencing the Timms Review. We will also continue to highlight how the LHA freeze is driving down living standards of private renters. We will also produce new work on the developments in energy bills, focusing on how the government might go about easing the cost of living burden on poorer households.

Public finances and spending

We will continue our flagship coverage of fiscal events. We plan to produce previews and overnight analyses of key events, including Autumn Budget 2025 and the Spring Forecast 2026. We will also enter into a major new programme of work that considers the big picture for the size and shape of the state and considers how the government could ease some of the fiscal tradeoffs that it faces given low growth and high demand on public services, not least from ageing.

ECONOMY

Growth

Continuing the legacy of the Economy 2030 Inquiry, our work will include a stocktake of the Government’s record on growth policy so far. We will update our view on economic growth since the pandemic, including our estimates of the dynamism of the UK corporate sector, and suggest growth policy priorities for the Government. We plan to finish our sectoral approach to net zero issues by considering the lagging transition in the agricultural sector, focusing on how greening food production can be achieved without creating high costs of driving farms out of business, reducing food security. Our work will then pivot to considering how the big policy challenges associated with the transition can be managed with living standards in mind. This will include an assessment of regional aspects of the transition and, in particular, consider how the transition should be delivered in areas where there will be significant change in the labour market – either through substantial job losses or structural

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THE RESOLUTION FOUNDATION (A Company Limited by Guarantee)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 30 SEPTEMBER 2025

change in the industrial base.

Investment & Technology

Given the development in AI technology and the fundamental role it is expected to play in global productivity over the coming decade, we will undertake work to understand technological diffusion and investment in AI.

Cities and Regions

We will explore further work on explaining regional differences in productivity and the drivers of recent diverging growth trends across core cities. We will use this alongside our Economy 2030 second cities research to advise the Government on its policy approach to regional growth, including on what and where public investment should be prioritised to best boost economic growth and raise living standards.

TRENDS

Income and wealth

We will complete the Unsung Britain project on the changing circumstances of low-to-middle income Britain, covering work, housing, health and care, credit and debt, and income sources and income dynamics, with a major conference in Spring 2026. We continue to publish projections of income growth for the rest of the Parliament. We will use new HBAI data to assess which groups have done particularly well or poorly out of the past thirty years.

Generations and demographics

As part of the ESRC-funded Connecting Generations research programme, we will look at the decline in fertility rates for the most recent cohorts, and the policy implications, and do a deep dive on the incomes of the newest generation to join the workforce, Gen Z. We will updating analysis from the original Intergenerational Commission on consumption and time use.

Ventures

The Ventures team will divide their time between the Resolution Foundation and the new Fund operating company, Resolution Impact Ventures Ltd. The work within the Resolution Foundation will include running events and producing resources to support the Workertech ecosystem in continuing to grow and deliver impact and innovation for low-paid workers in the UK. We will also aim to integrate thinking from the research and ventures teams on important questions like the impact of new AI technologies on the labour market.

Structure, governance and management

a. Governing document

The Resolution Foundation was incorporated on 11 October 2005 as a company limited by guarantee and was registered as a charity on 24 June 2006. The Charity is governed by its Memorandum and Articles of Association.

b. Recruitment and appointment of new trustees

The Trustees (who are also the directors of the charitable company for the purposes of company law) are a selfappointing body with each Trustee initially appointed for a three-year term. New Trustees can be nominated by any existing Trustee and are appointed according to relevant skills and experience.

Page 9

THE RESOLUTION FOUNDATION

(A Company Limited by Guarantee)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 30 SEPTEMBER 2025

Structure, governance and management (continued)

c. Organisational structure

Trustees attend regular meetings where progress, strategy and plans are discussed. They are also sent relevant documentation including minutes of meetings. The Trustees meet as necessary and not less than three times each year, and all key decisions affecting the Charity are made at these meetings. The Trustees appointed Ruth Curtice as Chief Executive in January 2025 who has day to day responsibility for all operational matters. Ruth succeeded Torsten Bell who stepped down in June 2024, with Mike Brewer (Deputy Chief Executive) serving as Interim Chief Executive between July 2024 and January 2025. The Right Hon. Lord David Willetts continues to serve as President.

d. Induction and training of new trustees

Trustees are given an in-depth introduction to the organisation and the role of Trustees through a formal induction process and meetings with the Chair of Trustees and the Chief Executive.

e. Key management remuneration

The key management personnel of the Foundation are those persons having authority and responsibilities for planning, directing and controlling the activities of the entity, directly or indirectly, including any Trustees of the entity. For the Foundation, they comprise the President of the Advisory Council and Intergenerational Centre, the Chief Executive, the Deputy Chief Executive, the Director of Communications and the Director of Finance and Resources. The remuneration of the President of the Advisory Council and Intergenerational Centre and the Chief Executive is set by the Trustees. All other staff salaries are set by the senior management team. Salaries are benchmarked using comparisons with charities and public policy related organisations in similar labour markets both by geography and issue areas, taking into account factors including inflation and the Foundation's financial position. The Foundation is an accredited Living Wage employer. All our staff and contractors are paid at least the Living Wage which is an hourly rate set and updated annually, based on the cost of living.

f. Related parties

Trustees are required to disclose all relevant interests, register them with the Chief Executive and withdraw from decisions where a conflict of interest arises. All Trustees give of their time freely and no Trustee remuneration or travel expenses were paid during the year. The Trustees who acted during the year are those listed in this report. Related party transactions are disclosed in the notes to these financial statements.

Page 10

THE RESOLUTION FOUNDATION

(A Company Limited by Guarantee)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 30 SEPTEMBER 2025

Structure, governance and management (continued)

g. Risk management

The Trustees acknowledge their responsibility for establishing a risk management system and are satisfied that appropriate systems and procedures have been established to identify and manage the major risks faced by the Charity.

The Foundation has a risk management strategy in place. The risk register is reviewed annually by the board of Trustees and monitored by the senior management team who take responsibility for implementation of the policies and procedures identified to mitigate risks. In addition, risk reviews are undertaken regularly by the Trustees and senior management team to ensure the Foundation's operational rigour, attachment to purpose and independence are maintained.

The most significant external risk identified during the year was associated with delivering the final stages of the Workertech Partnership Social Investment programme while establishing a larger social investment fund to pursue the same objectives. The Foundation’s Social Investment Committee was the key vehicle used to manage the risks throughout this process. Appropriate governance and management procedures were implemented to ensure the social investment programme was wrapped up successfully while also preparing to meet the additional regulatory requirements involved in embarking on an FCA regulated investment fund. Measures were also taken to separate the management and structure of the new fund from the Foundation, to reduce any risk of liability for the Foundation in the future, while preserving the potential for positive social impact.

The most significant organisational risk faced during the year related to ensuring the Foundation retained its profile, values and impact given personnel changes in the Senior Leadership Team. These risks were mitigated by ensuring RF’s mission remained central to all work planning and by continuing to ensure communication with key stakeholders in the civil service and the media was prioritized.

Events since the end of the year

In September 2025, the Board approved updated wording to clarify the Foundation’s mission which has been used in this Annual Report. While the language has been refreshed, our charitable purpose and strategic direction remain unchanged.

Statement of Trustees' responsibilities

The Trustees (who are also the directors of the Charity for the purposes of company law) are responsible for preparing the Trustees' Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

Company law requires the Trustees to prepare financial statements for each financial . Under company law, the Trustees must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the Charity and of its income and application of resources, including its income and expenditure, for that period. In preparing these financial statements, the Trustees are required to:

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THE RESOLUTION FOUNDATION (A Company Limited by Guarantee)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 30 SEPTEMBER 2025

Statement of Trustees' responsibilities (CONTINUED)

The Trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the Charity's transactions and disclose with reasonable accuracy at any time the financial position of the Charity and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the Charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Disclosure of information to auditors

Each of the persons who are Trustees at the time when this Trustees' Report is approved has confirmed that:

Auditors

The auditors, HaysMac LLP, have indicated their willingness to continue in office. The designated Trustees will propose a motion reappointing the auditors at a meeting of the Trustees.

These financial statements have been prepared in accordance with the provisions applicable to companies entitled to the small companies’ exemption.

Approved by order of the members of the board of Trustees and signed on their behalf by:

Clive Cowdery

Date: 29 June 2026

Page 12

(A Company Limited by Guarantee)

THE RESOLUTION FOUNDATION

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF THE RESOLUTION FOUNDATION

Opinion

We have audited the financial statements of The Resolution Foundation (the 'charity') for the year ended 30 September 2025 which comprise the Statement of Financial Activities, the Balance Sheet, the Statement of Cash Flows and the related notes, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the charitable company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the Trustees' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charitable company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the Trustees with respect to going concern are described in the relevant sections of this report.

Page 13

(A Company Limited by Guarantee)

THE RESOLUTION FOUNDATION

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF THE RESOLUTION FOUNDATION (CONTINUED)

Other information

The other information comprises the information included in the Annual Report other than the financial statements and our Auditors' Report thereon. The Trustees are responsible for the other information contained within the Annual Report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Opinion on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of the audit:

Matters on which we are required to report by exception

In the light of our knowledge and understanding of the charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the Trustees' Report.

We have nothing to report in respect of the following matters in relation to which Companies Act 2006 requires us to report to you if, in our opinion:

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THE RESOLUTION FOUNDATION

(A Company Limited by Guarantee)

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF THE RESOLUTION FOUNDATION (CONTINUED)

Responsibilities of trustees

As explained more fully in the Trustees' Responsibilities Statement, the Trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the Trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the Trustees are responsible for assessing the charitable company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Trustees either intend to liquidate the charitable company or to cease operations, or have no realistic alternative but to do so.

Auditors' responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an Auditors' Report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

Based on our understanding of the charitable company and the environment in which it operates, we identified that the principal risks of non-compliance with laws and regulations related to registered charities, and we considered the extent to which non-compliance might have a material effect on the financial statements. We also considered those laws and regulations that have a direct impact on the preparation of the financial statements such as the Companies Act 2006, the Charities Act 2011 and other factors such as income tax and sales tax.

We evaluated management’s incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls), and determined that the principal risks were related to areas of estimation uncertainty and to manual accounting journals. Audit procedures performed by the engagement team included:

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves

Page 15

THE RESOLUTION FOUNDATION

(A Company Limited by Guarantee)

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF THE RESOLUTION FOUNDATION (CONTINUED)

intentional concealment, forgery, collusion, omission or misrepresentation.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our Auditors' Report.

Use of our report

This report is made solely to the charitable company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charitable company's members those matters we are required to state to them in an Auditors' Report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and its members, as a body, for our audit work, for this report, or for the opinions we have formed.

Steven Harper (Senior Statutory Auditor) for and on behalf of HaysMac LLP Statutory Auditors 10 Queen Street Place London EC4R 1AG

Date: 30/06/2026

Page 16

THE RESOLUTION FOUNDATION

(A Company Limited by Guarantee)

STATEMENT OF FINANCIAL ACTIVITIES (INCORPORATING INCOME AND EXPENDITURE ACCOUNT) FOR THE YEAR ENDED 30 SEPTEMBER 2025

Note
Income from:
Donations and legacies
4
Investments
5
Other income
6
Total income
Expenditure on:
Charitable activities
7
Total expenditure
Net income
Transfers between funds
16
Total transfers
Net movement in funds
Reconciliation of funds:
Total funds brought forward
Net movement in funds
Total funds carried forward		 Unrestricted
funds
2025
£
2,664,244
45,106
87,473
2,796,823
2,295,083
2,295,083
501,740
(256,796)
(256,796)
244,944
2,038,879
244,944
2,283,823		 Restricted
funds
2025
£
1,402,211
-
-
1,402,211
1,184,368
1,184,368
217,843
256,796
256,796
474,639
83,406
474,639
558,045		 Total
funds
2025
£
4,066,455
45,106
87,473
4,199,034
3,479,451
3,479,451
719,583
-
-
719,583
2,122,285
719,583
2,841,868		 Total
funds
2024
£
3,850,399
135,525
60,996
4,046,920
3,738,286
3,738,286
308,634
-
-
308,634
1,813,651
308,634
2,122,285

The Statement of Financial Activities includes all gains and losses recognised in the year.

The notes on pages 20 to 39 form part of these financial statements.

Page 17

THE RESOLUTION FOUNDATION (A Company Limited by Guarantee) REGISTERED NUMBER: 05588883

BALANCE SHEET AS AT 30 SEPTEMBER 2025

Note
Fixed assets
Investments
12
Current assets
Debtors
13
Investments
14
Cash at bank and in hand
Creditors: amounts falling due within one
year
15
Net current assets
Total assets less current liabilities
Total net assets
Charity funds
Restricted funds
16
Unrestricted funds
16
Total funds		 2,097,663
597,330
290,207
2,985,200
(143,332)		 2025
£
-
2,841,868
2,841,868
2,841,868
558,045
2,283,823
2,841,868		 1,488,822
-
831,661
2,320,483
(735,515)		 2024
£
537,317
1,584,968
2,122,285
2,122,285
83,406
2,038,879
2,122,285

The Trustees acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and preparation of financial statements.

The financial statements have been prepared in accordance with the provisions applicable to entities subject to the small companies regime.

The financial statements were approved and authorised for issue by the Trustees and signed on their behalf by:

Clive Cowdery

Date: 29 June 2026

The notes on pages 20 to 39 form part of these financial statements.

Page 18

(A Company Limited by Guarantee)

THE RESOLUTION FOUNDATION

STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 30 SEPTEMBER 2025

Cash flows from operating activities
Net cash (used in)/provided by operating activities
Cash flows from investing activities
Purchase of social investments
Impairment of social investments
Interest received
Disposal of social investments
Net cash (used in)/provided by investing activities
Cash flows from financing activities
Repayments of borrowing
Net cash used in financing activities
Change in cash and cash equivalents in the year
Cash and cash equivalents at the beginning of the year
Cash and cash equivalents at the end of the year
The notes on pages 20 to 39 form part of these financial statements		 2025
£
(409,357)
(129,988)
-
45,106
69,985
(14,897)
(117,200)
(117,200)
(541,454)
831,661
290,207		 2024
£
(220,279)
(209,941)
110,017
9,485
139,969
49,530
(32,800)
(32,800)
(203,549)
1,035,210
831,661

Page 19

THE RESOLUTION FOUNDATION (A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2025

1. General information

The Resolution Foundation is a company limited by guarantee incorporated in England and Wales, registration number 05588883 (charity number 1114839).

The registered address is 2 Queen Anne's Gate, London, SW1H 9AA.

2. Accounting policies

2.1 Basis of preparation of financial statements

The financial statements of the charitable company, which is a public benefit entity under FRS 102, have been prepared in accordance with the Charities SORP (FRS 102) 'Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019)', Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and the Companies Act 2006. The financial statements have been prepared under the historical cost convention, as modified by the revaluation of certain assets.

2.2 Going concern

At the time of approving the financial statements, the trustees have a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future. The Resolution Trust is committed to ongoing funding and there is also a pipeline of funding from other sources. On that basis the charity is considered to be a going concern and there are no material uncertainties on this consideration.

2.3 Income

All income is recognised in the Statement of Financial Activities once the charity has entitlement to the funds, it is probable that the income will be received and the amount can be measured reliably.

Donations are recognised as income in the year in which the donor states the funds should be expended. Where no such statement is made the income is recognised in the year in which it is receivable.

Income received in advance for the provision of a specified service is deferred until the criteria for income recognition are met.

Investment income is recognised when receivable and the amount can be measured reliably by the charity.

Page 20

THE RESOLUTION FOUNDATION

(A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2025

2. Accounting policies (continued)

2.4 Expenditure

Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the charity to that expenditure, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. Expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all cost related to the category. Where costs cannot be directly attributed to particular headings they have been allocated to activities on a basis consistent with the use of resources.

Support costs comprise of costs associated with the management and administration of the charity and governance costs which are incurred in connection with the general running of the charity as opposed to the management and administration of its activities. They include costs relating to constitutional and statutory requirements.

2.5 Investments

Investments are a form of basic financial instrument and comprise investments in equity investments which are initially recognised at their transaction value and are subsequently assessed for impairment at year-end. Any impairment is disclosed within the statement of financial activities as charitable activities.

2.6 Debtors

Trade and other debtors are recognised at the settlement amount after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due.

2.7 Cash at bank and in hand

Cash at bank and in hand includes cash and short-term highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account.

2.8 Liabilities and provisions

Liabilities are recognised when there is an obligation at the Balance Sheet date as a result of a past event, it is probable that a transfer of economic benefit will be required in settlement, and the amount of the settlement can be estimated reliably.

Liabilities are recognised at the amount that the Charity anticipates it will pay to settle the debt or the amount it has received as advanced payments for the goods or services it must provide.

2.9 Financial instruments

The Charity only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value with the exception of bank loans which are subsequently measured at amortised cost using the effective interest method.

Page 21

THE RESOLUTION FOUNDATION (A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2025

2. Accounting policies (continued)

2.10 Pensions

The charitable company operates a defined contribution pension scheme. Contributions payable to the charitable company's pension scheme are charged to the Statement of Financial Activities in the period to which they relate.

2.11 Fund accounting

Unrestricted funds can be used in accordance with the charitable objectives at the discretion of the trustees. Unrestricted funds are those where there are no externally imposed restrictions and are available for use at the discretion of the Trustees for expenditure on its objects or appropriated to reserves for internally designated purposes.

Restricted funds can only be used for particular restricted purposes within the objects of the charity. Restrictions arise when specified by the donor or when funds are raised for particular restricted purposes.

Further explanation of the nature and purpose of each fund is included in the notes to the financial statements.

2.12 Hire purchase and leasing commitments

Rentals paid under operating leases are charged to the Statement of Financial Activities on a straight line basis over the period of the lease.

2.13 Taxation

The Charity is considered to pass the tests set out in Paragraph 1 Schedule 6 Finance Act 2010 and therefore it meets the definition of a charitable company for UK Corporation Tax purposes. Accordingly the Charity is potentially exempt from taxation in respect of income or capital gains received within categories covered by Chapter 3 Part 11 Corporation Tax Act 2010 or Section 256 of the Taxation of Chargeable Gains Act 1992, to the extent that such income or gains are applied exclusively to charitable purposes.

3. Critical accounting estimates and areas of judgement

In the application of the charity’s accounting policies, the trustees are required to make judgements, estimates and assumptions about the carrying value of assets and liabilities that are not readily apparent from other sources. The estimates and underlying assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an on-going basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period, or in the period of the revision and future periods if the revision affects the current and future periods.

The key sources of estimation uncertainty that have a significant effect on the amounts recognised in the accounts are described in the accounting policies and are summarised below:

Valuation of social investments - the charity’s social investments are held at cost less impairment.

Page 22

(A Company Limited by Guarantee)

THE RESOLUTION FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2025

4. Income from donations and legacies

Grants
Grants		 Unrestricted
funds
2025
£
2,664,244
Unrestricted
funds
2024
£
2,579,790		 Restricted
funds
2025
£
1,402,211
Restricted
funds
2024
£
1,270,610		 Total
funds
2025
£
4,066,455
Total
funds
2024
£
3,850,400

Resolution Trust are committed to fund the Foundation for the foreseeable future having awarded grants totalling £7,680,000 with effect from 1 October 2022. Of this, £2,560,000 was received during the year. In 2024, the Trustees of the Resolution Trust agreed to provide funding for the Foundation of £2,560,000 for 2025/2026 and confirmed a new three-year funding agreement for 2026/2027 to 2028/2029 would be agreed before October 2026

Page 23

(A Company Limited by Guarantee)

THE RESOLUTION FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2025

Grants received, included in the above, are as follows:

Aviva
Citizens UK
ESRC Aston University
ESRC Southampton
European Climate Foundation
Goldman Sachs
People's Partnership
JP Morgan
JRF: Earnings Volatility
Nationwide
Nuffield Foundation
Octopus Energy
Other miscellaneous grants
Resolution Trust
Standard Life
The Health Foundation
Unbound Philanthropy
Ventures Workertech grant income
Wates Family Enterprise		 2025
£
10,000
-
47,098
46,676
201,773
3,000
56,400
-
29,566
99,814
66,592
13,000
8,843
2,560,000
125,500
47,216
50,000
665,876
35,101
4,066,455		 2024
£
-
13,000
20,660
89,794
156,482
-
-
115,184
30,000
-
329,424
-
6,730
2,560,000
39,500
27,905
50,000
411,721
-
3,850,400

The total remaining Workertech Partnership income has been recognised in the year and released from deferred income in line with the completion of the project. Following the success of the Workertech Partnership social investment programme, the Ventures team succeeded in establishing a new independent Workertech social impact fund, having secured commitments from foundation partners of £6.75m during the year. As a result, the Foundation is entitled to recognise the income in line with the relevant accounting framework.

Investments made previously by the Foundation under the Workertech Partnership programme are in the process of being transferred into the Fund vehicle, and the Foundation will hold an investment stake in the new Fund as a result.

Page 24

THE RESOLUTION FOUNDATION

(A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2025

Total funding held in the year in respect of Ventures is as follows:
Resolution Trust
Ufi VocTech Trust
Friends Provident Foundation
Trust for London		 2025
£
-
-
-
28,418
28,418		 2024
£
-
45,000
44,648
18,465
108,113
5.
Investment income
Unrestricted
funds
2025
£
Investment income - other local unlisted
34,976
Bank Interest
10,130
45,106
Unrestricted
funds
2024
£
Investment income - other local unlisted
126,039
Bank Interest
9,486
135,525		 Total
funds
2025
£
34,976
10,130
45,106
Total
funds
2024
£
126,039
9,486
135,525

Page 25

(A Company Limited by Guarantee)

THE RESOLUTION FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2025

6. Other income

Administration charges
Miscellaneous income
Administration charges
Miscellaneous income		 Unrestricted
funds
2025
£
6,364
81,109
87,473
Unrestricted
funds
2024
£
4,944
56,052
60,996		 Total
funds
2025
£
6,364
81,109
87,473
Total
funds
2024
£
4,944
56,052
60,996

Miscellaneous income in 2025 and 2024 consists of payment for contracted research projects and other ad hoc activity like articles and speaking engagements.

Allia
Citizens UK
The Health Foundation
Guardian/Observer
Holtek
Octupus Energy
London School of Economics
Resolution Impact Ventures Ltd
Others		 2025
£
2,250
35,000
14,499
-
-
4,000
5,000
19,920
440
81,109		 2024
£
6,750
36,777
-
3,771
7,000
-
-
-
1,753
56,051

The above income is wholly unrestricted.

Page 26

(A Company Limited by Guarantee)

THE RESOLUTION FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2025

7. Analysis of expenditure on charitable activities

Summary by fund type

Research and Education
Research and Education		 Unrestricted
funds
2025
£
2,295,083
Unrestricted
funds
2024
£
2,497,001		 Restricted
funds
2025
£
1,184,368
Restricted
funds
2024
£
1,241,285		 Total
2025
£
3,479,451
Total
2024
£
3,738,286

8. Analysis of expenditure by activities

Research and Education
Research and Education		 Activities
undertaken
directly
2025
£
3,374,847
Activities
undertaken
directly
2024
£
3,644,817		 Support
costs
2025
£
104,604
Support
costs
2024
£
93,470		 Total
funds
2025
£
3,479,451
Total
funds
2024
£
3,738,287

Analysis of support costs

Page 27

THE RESOLUTION FOUNDATION

(A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2025

8. Analysis of expenditure by activities (continued)

Analysis of support costs (continued)

Other operating leases
IT support and supplies
Insurance
Postage and stationery
Memberships and subscriptions
Photocopier charges
Payroll and finance support
Travel
Auditors' remuneration
Sundries
9.
Auditors' remuneration
Fees payable to the Charity's auditor for the audit of the Charity's annual
accounts
Fees payable to the Charity's auditor in respect of:
All non-audit services not included above
10.
Staff costs
Wages and salaries
Social security costs
Contribution to defined contribution pension schemes		 Total
funds
2025
£
3,887
38,588
7,960
769
3,783
4,219
14,502
7,819
21,240
1,837
104,604
2025
£
19,680
1,560
2025
£
2,008,084
262,855
143,556
2,414,495		 Total
funds
2024
£
3,887
38,581
7,346
501
3,490
4,348
8,583
5,256
20,400
1,078
93,470
2024
£
18,900
1,500
2024
£
1,909,201
226,769
130,326
2,266,296

Page 28

THE RESOLUTION FOUNDATION (A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2025

10. Staff costs (continued)

The average number of persons employed by the Charity during the year was as follows:

Total
The average headcount expressed as full-time equivalents was:
Total		 2025
No.
35
2025
No.
35		 2024
No.
30
2024
No.
30

The number of employees whose employee benefits (excluding employer pension costs) exceeded £60,000 was:

2025 2024
No. No.
In the band £60,001 - £70,000 6 2
In the band £70,001 - £80,000 2 2
In the band £80,001 - £90,000 - 1
In the band £90,001 - £100,000 3 3
In the band £100,001 - £110,000 1 1
In the band £110,001 - £120,000 1 -
In the band £120,001 - £130,000 - 1
In the band £130,001 - £140,000 - 1
In the band £140,001 - £150,000 1 1

Key management personnel

The total employee benefits paid to key management personnel during the year amounted to £666,878 (2024: £734,888).

11. Trustees' remuneration and expenses

During the year, no Trustees received any remuneration or other benefits (2024 - £NIL) .

During the year ended 30 September 2025, expenses totalling £ 188 were reimbursed or paid directly to 1 Trustee (2024 - £325 to 1 Trustee) .

Page 29

THE RESOLUTION FOUNDATION (A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2025

12. Social investments

Cost
At 1 October 2024
Additions
Disposals
At 30 September 2025
Net book value
At 30 September 2025
At 30 September 2024
Investments comprise the following:
Subtap Limited
Breakroom / Poplar Technologies Limited
Career Ear
Included AI Ltd
Social Innovation Camp
TaskHer
Equal Care
WAC CLN
Mobilise
Valla Ltd
Organise Ltd
Greenworkx
Slinger Staff Ltd		 2025
£
-
-
80,007
30,000
27,500
69,825
50,000
50,000
50,000
99,998
70,000
-
70,000		 Programme
related
investments
equity
£
537,317
129,998
(69,985)
597,330
597,330
537,317
2024
£
-
-
80,007
-
47,500
69,825
50,000
-
50,000
50,000
70,000
70,000
49,985
537,317		 Programme
related
investments
equity
£
537,317
129,998
(69,985)
597,330
597,330
537,317
2024
£
-
-
80,007
-
47,500
69,825
50,000
-
50,000
50,000
70,000
70,000
49,985
537,317
597,330 537,317

During the year, the Foundation transferred its holding in Organise Ltd to the new WorkerTech Ventures Fund. Given the Foundation is due to transfer these investments to a new entity within 12 months of the year-end, these have been reclassified as current assets on the balance sheet (see note 14).

Page 30

(A Company Limited by Guarantee)

THE RESOLUTION FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2025

13. Debtors

Due within one year
Trade debtors
Other debtors
Prepayments and accrued income		 2025
£
604,725
150,000
1,342,938
2,097,663		 2024
£
37,719
150,000
1,301,103
1,488,822

14. Current asset investments

Unlisted investments
Creditors: Amounts falling due within one year
Other loans
Trade creditors
Accrued expenses
Deferred income
Deferred income at 1 October 2024
Resources deferred during the year
Amounts released from previous periods		 2025
£
597,330
2025
£
-
113,661
29,671
-
143,332
2025
£
(303,607)
-
303,607
-		 2024
£
-
2024
£
117,200
23,627
35,381
559,307
735,515
2024
£
-
140,530
(444,137)
(303,607)

15. Creditors: Amounts falling due within one year

Page 31

THE RESOLUTION FOUNDATION (A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2025

16. Statement of funds

Statement of funds - current year

Unrestricted funds
General Funds - all funds
Unallocated amounts
Restricted funds
Unbound Philanthropy -
Precarious workers
ESRC Southampton
ESRC Aston
RF Ventures - Workertech
Partnership
Nuffield Foundation - Job
Ladders
JRF
Intergenerational Futures
Forum
European Climate Foundation
Health Foundation -
Understanding disability
abrdn Finanical Fairness Trust
- Wealth audit
People's Partnership
JPM Chase Foundation
Nationwide Building Society
Wates Family Enterprise Trust		 Balance at 1
October
2024
£
2,038,879
-
2,038,879
Balance at 1
October
2024
£
24,903
-
-
-
-
-
6,775
8,526
-
-
(15,126)
58,328
-
-
83,406		 Income
£
2,796,823
-
2,796,823
Income
£
50,000
46,676
47,098
665,875
66,592
29,566
-
201,773
34,216
125,500
-
-
99,814
35,101
1,402,211		 Expenditure
£
(2,295,353)
270
(2,295,083)
Expenditure
£
(26,158)
(47,654)
(67,758)
(172,853)
(66,592)
(29,566)
-
(319,076)
(29,403)
(200,990)
-
(94,049)
(99,858)
(30,411)
(1,184,368)		 Transfers
in/out
£
(256,796)
-
(256,796)
Transfers
in/out
£
-
978
20,660
-
-
-
-
108,777
-
75,490
15,126
35,721
44
-
256,796		 Balance at
30
September
2025
£
2,283,553
270
2,283,823
Balance at
30
September
2025
£
48,745
-
-
493,022
-
-
6,775
-
4,813
-
-
-
-
4,690
558,045

Page 32

(A Company Limited by Guarantee)

THE RESOLUTION FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2025

16.
Statement of funds (continued)
Total of funds
2,122,285		 4,199,034 (3,479,451) - 2,841,868

Page 33

(A Company Limited by Guarantee)

THE RESOLUTION FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2025

16. Statement of funds (continued)

Statement of funds - prior year

Unrestricted funds
General Funds - all funds
Restricted funds
Unbound Philanthropy - Precarious workers
ESRC Southampton
ESRC Aston
Health Foundation (Fellowship)
RF Ventures - Workertech Partnership
Nuffield Foundation - Economy 2030 Inquiry
Nuffield Foundation - Job Ladders
JRF
Intergenerational Futures Forum
European Climate Foundation
Health Foundation - Understanding disability
abrdn Finanical Fairness Trust - Wealth audit
People's Partnership
JPM Chase Foundation
Total of funds		 Balance at
1 October
2023
£
1,759,570
-
-
-
15,082
-
-
-
-
6,775
-
32,224
-
-
-
54,081
1,813,651		 Income
£
2,776,310
50,000
89,794
20,660
10,584
411,720
259,995
69,429
30,000
-
156,482
17,262
39,500
-
115,184
1,270,610
4,046,920		 Expenditure
£
(2,497,001)
(25,097)
(89,794)
(20,660)
(25,666)
(411,720)
(259,995)
(69,429)
(30,000)
-
(147,956)
(49,486)
(39,500)
(15,126)
(56,856)
(1,241,285)
(3,738,286)		 Balance at
30
September
2024
£
2,038,879
24,903
-
-
-
-
-
-
-
6,775
8,526
-
-
(15,126)
58,328
83,406
2,122,285

Page 34

(A Company Limited by Guarantee)

THE RESOLUTION FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2025

16. Statement of funds (continued)

abrdn Financial Fairness Trust (formerly Standard Life) – Wealth Audit

A grant supporting research and analysis that aims to build evidence on the level and inequality of household wealth in Britain.

European Climate Foundation – Impact of net-zero transition on low and middle income households

Grant funding from the European Climate Foundation supports work aimed at improving the public discourse on how the net-zero transition impacts the living standards of low and middle income households and, ultimately, identify policies which will drive a fair and equitable progress towards decarbonisation..

ESRC / Southampton University - Intergenerational Centre

A five-year ESRC-funded project in collaboration with the University of Southampton, University of St Andrews, and University of Oxford, to innovate understanding of intergenerational relations and population change; re-think intergenerational connections for post-Brexit/Covid society; and produce novel science that will drive policy thinking towards improving the lives of individuals, families, communities and businesses.

ESRC / Aston University – Levelling Up Sandpit

This project aims to analyse what drives the large and persistent productivity differences across regions in the UK. Despite their importance, the factors behind these spatial economic imbalances are still poorly understood. The project will focus on the interaction between the distribution of workers' skills, the characteristics of firms, and local factors like infrastructure and amenities across areas. Understanding and addressing the root causes of the UK's severe spatial disparities in economic performance is crucial for enabling more inclusive, regionally balanced growth and boosting national productivity.

Health Foundation – Cost of Living Survey

This project seeks to explore the health impacts of the cost of living crisis and includes undertaking three surveys between November 2022 and May 2023. The surveys will cover the UK adult population and will assist understanding of the scale and depth of the cost of living crisis.

Health Foundation - Securing high quality work for young adults

This three-year project, supported by the Health Foundation who are committed to bringing about better health and health care for people in the UK, focuses on the of poor quality work on young people and the difficulties they face in accessing high quality work.

Health Foundation – The economic causes and consequences of rising disability- Securing high quality work for young adults

The grant was provided to support work aimed at extending policy makers’ understanding of disability and delineating measures which would improve the living standards of people with disabilities through better-designed benefit support, increased employment rates or improved public services. By providing clear and robust research findings, the project informs and advances the policy debate on disability.

I ntergenerational Futures Forum Group - Intergenerational Centre

A donation made in memory of Baroness Sally Greengross, OBE to fund research and policy work, including a public event, relating to intergenerational issues.

Joseph Rowntree Foundation – Earnings Volatility

This project considers volatility and dynamics in employee earnings at the level of the individual (not the family or household) for a very large sample that is representative of employees in the UK. Since earnings are the largest single source of household income, this project will contribute substantially to the goal of understanding more about household income volatility and how the UK labour market provides secure streams of income for workers.

Page 35

(A Company Limited by Guarantee)

THE RESOLUTION FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2025

16. Statement of funds (continued)

JPM Chase Foundation - Financial Health and Resilience across Europe

The purpose of the grant is to provide rigorous insight into the challenge of financial resilience among low-to-middle income households across a range of European countries; and scope the role that financial inclusion labs, or alternative policy interventions, could play in pioneering new high-impact solutions to this problem.

Nationwide Building Society – The living standards of different types of households

The purpose of the grant is to fund an assessment of the factors affecting incomes and family finances at the start of the first Parliament of the new Government and a distributional assessment of the state of the housing market.

Nuffield Foundation - Economy 2030 Inquiry

The Economy 2030 Inquiry, a collaboration with the Centre for Economic Performance (CEP) at the London School of Economics (LSE), funded by the Nuffield Foundation, is a three year project which aims to address the question of economic change in light of the impact of Covid-19, the exit from the EU and the need to transition towards a Net Zero future.

Nuffield Foundation – General Election 2024

The purpose of this grant is to provide a series of timely, informative and high-impact General Election briefings, to inform public debates on economic issues during the election campaign. The overall aims of the briefings are to improve the understanding of the factual evidence on key economic and social policy issues among the public, media and other commentators, and to drive up the reliability and accuracy of public claims.

Nuffield Foundation – Characterising the job ladder in England

The purpose of this grant is to fund work which measures and characterises the 'job ladder' in England – analysing who moves up it, when and why. Wages form the majority of income for the majority of households and are a key determinant of overall household income distribution. Improved wage growth at the bottom of the distribution is important for strong improvements in living standards.

Unbound Philanthropy – Worker Power

The purpose of this grant is to support research and evidence based policy recommendations to improve worker power, regulation and enforcement for those in precarious work.

Ventures - Workertech Partnership

The Workertech Partnership is a three year programme of social investment, in collaboration with Accenture, Friends Provident Foundation, the Joseph Rowntree Foundation, Trust for London and Ufi VocTech Trust, aimed at supporting the growth of new innovative start-ups seeking to change the world of work for the better.

Wates Family Enterprise Trust – Housing affordability, quality and supply

Three year grant funding to support the creation of an interactive housing data dashboard which will improve access to high-quality research into housing affordability, quality, and supply; and the production of four quarterly Housing Outlooks to draw out the implications for policy and practice.

Page 36

(A Company Limited by Guarantee)

THE RESOLUTION FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2025

17. Analysis of net assets between funds

Analysis of net assets between funds - current year
Unrestricted
funds
2025
Restricted
funds
2025
£
£
Current assets
2,426,885
558,315
Creditors due within one year
(143,332)
-
Difference
270
(270)
Total
2,283,823
558,045
Analysis of net assets between funds - prior year
Unrestricted
funds
2024
Restricted
funds
2024
£
£
Fixed asset investments
-
537,317
Current assets
2,320,483
-
Creditors due within one year
(281,604)
(453,911)
Total
2,038,879
83,406
18.
Reconciliation of net movement in funds to net cash flow from operating activities
2025
£
Net income for the year (as per Statement of Financial Activities)
719,583
Adjustments for:
Dividends, interests and rents from investments
(45,106)
(Increase)/decrease in debtors
(608,841)
(Decrease)/increase in creditors
(474,993)
Net cash used in operating activities
(409,357)		 Total
funds
2025
£
2,985,200
(143,332)
-
2,841,868
Total
funds
2024
£
537,317
2,320,483
(735,515)
2,122,285
2024
£
308,634
(9,485)
(105,552)
(413,876)
(220,279)

Page 37

THE RESOLUTION FOUNDATION

(A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2025

19. Analysis of cash and cash equivalents

Cash in hand
Total cash and cash equivalents		 2025
£
290,207
290,207		 2024
£
831,661
831,661

20. Analysis of changes in net funds

Cash at bank and in hand
Debt due within 1 year
Social investments		 At 1
October
2024
£
831,661
(117,200)
-
714,461		 Cash flows
£
(541,454)
117,200
597,330
173,076		 At 30
September
2025
£
290,207
-
597,330
887,537

21. Pension commitments

The charitable company operates a defined contribution pension scheme through The Pensions Trust with contributions being made by both employer and employees at variable rates. The assets of the scheme are held separately from those of The Resolution Foundation. Pension costs charged represent contributions payable by the Foundation to the Trust. Total pension costs in the current year amounted to £143,556 (2024: £130,326). At the year end £nil was due to the Trust (2024: £nil).

Page 38

(A Company Limited by Guarantee)

THE RESOLUTION FOUNDATION

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2025

22. Operating lease commitments

At 30 September 2025 the Charity had commitments to make future minimum lease payments under non-cancellable operating leases as follows:

2025 2024
£ £
Not later than 1 year 179,440 179,440

The following lease payments and changes in lease payments have been recognised in the Statement of Financial Activities:

2025 2024
£ £
Operating lease rentals - property 179,440 179,440

23. Related party transactions

One of the trustees of the Foundation is the sole director of Resolution Service Management Ltd. The Foundation signed a five year lease with Resolution Service Management Ltd for new premises in November 2015. In December 2019, the Foundation signed a five year lease with Resolution Service Management Ltd which cancelled the November 2015 lease in favour of co-terminus leases for their existing premises and an additional floor within the same building. In November 2024, a new 5 year lease was signed on the same terms. The decision was taken by the independent trustees after considering market value and the benefits to the Foundation given the facilities and location.

Total rent paid to Resolution Service Management Ltd during the year amounted to £179,440 (2024: £179,440).

The Foundation shares two trustees with the Resolution Trust, a registered charity. During the year, the Foundation received a donation from the Trust which is disclosed within note 4 of the financial statements.

The Foundation also has a shared services agreement in place with the Resolution Trust for the time spent by the Executive Chair and the Director of Resources on Trust activity. The value of this for the year is £54,471 (2024 - £136,106).

Page 39