This report summarises the main findings of research based on the National Child Development Study which has followed a group born in a single week in 1958. It examines their literacy and numeracy skills at the age of 37 and gives evidence on the relationship between poor basic skills and qualifications, unemployment, type of job, amount of workplace training, promotion and wage levels. It also examines some aspects of family life and social participation. As they reach "the heart of adult life" it's clear that problems with basic skills have a continuing, adverse, effect on people's lives. People with limited basic skills are less likely than those with good basic skills to have a job. Critically, the research shows a widening gap. As jobs require "more" skills, those with limited skills are increasingly marginalised. They are also less likely to have been promoted or to have had training at work. They are less likely to be a member of a public organisation or to vote in a general election. The evidence in this report gives a stark picture of disadvantage in the labour market and social exclusion. It reinforces the importance of extending current programmes through which adults have opportunities to improve their basic skills. Literacy & Numeracy tasks are appended. (Contains 13 figures and 9 tables.)