Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what assessment has been made on the levels of household disposable income as a result of the potential impact of the OBR's forecasts on household income.

Since 2022, the government has demonstrated its commitment to households by providing one of the largest support packages in Europe. Support for households with the cost-of-living, from 2022-23 to 2023-24, totalled £96 billion – an average of £3400 per UK household.

Real Household Disposable Income (RHDI) per capita has outperformed OBR expectations. RHDI per capita grew by 1.3% in 2023, rather than falling by 3.2% as predicted in the OBR’s March 2023 forecast. This means that, in 2023, RHDI per capita was over £1,200 higher than the OBR expected in their March 2023 forecast, when using 2019 prices.

In the 2024 Spring Budget, the Chancellor announced a further 2 pence cut to the main rates of National Insurance Contributions. This adds to a boost of similar size from the National Insurance Contributions cut announced in the Autumn Statement 2023.