Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what assessment she has made of the potential impact of (a) average annual earnings and (b) prices on household disposable income in 2024-25.

Real Household Disposable Income (RHDI) per capita is a measure of UK living standards, representing the total disposable income per person in the UK, net of taxes and inflation. RHDI per capita grew by 3.1% over 2024. This is the largest calendar year increase since 2015.

Average whole economy total pay growth in 2024 was 5.3%. Inflation, as measured by CPI, fell to 2.5% in 2024, which supported RHDI growth in 2024.

HM Treasury does not prepare forecasts for the UK economy. Forecasts, including for real household disposable income, are the responsibility of the independent Office for Budget Responsibility (OBR). These forecasts are published by the OBR as part of its Economic and Fiscal Outlook (EFO). In the March 2025 EFO, the OBR forecasted that RHDI per capita would grow by 1.7% in 2025, supported by strong annual earnings growth outweighing the impact from prices.