Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what recent assessment she has made of the potential impact of inflation on average household disposable income in (a) Fylde constituency and (b) Lancashire.

Inflation has fallen from the peak of 11.1%, returning to the 2% target in September 2024, before increasing again to 3.5% in April. The independent Office for Budget Responsibility forecast that CPI inflation will peak at 3.8% in July this year before falling rapidly to around the 2.0% target from mid-2026 onwards.

Real household disposable income (RHDI) per person is a common measure of living standards. It includes the total income of households, in a given period, after direct taxes have been accounted for and adjusting for the effect of inflation. RHDI per person is only available at the UK wide level and cannot be disaggregated by county or constituency.

In the latest data, for Q4 2024, RHDI per person grew at its fastest quarterly rate in two years, rising by 1.5% compared to Q3 2024.

According to the Office for Budget Responsibility’s March 2025 forecast, RHDI per person was forecast to grow at an annual average of 0.5% over this parliament (Q3 2024 – Q2 2029).