Question to the HM Treasury:

To ask His Majesty's Government what assessment they have made of the report by the Resolution Foundation titled Happy new tax year 2025 published on 3 April which indicates that household income will fall by £400.

The Government’s Plan for Change outlines our goal to raise living standards across the United Kingdom. The measure of living standards used in the Government’s Plan for Change milestones is real household disposable income (RHDI) per person.

In the Office for Budget Responsibility (OBR) March 2025 forecast, RHDI per person is expected to rise over this parliament – twice as fast compared to the previous parliament, which was the worst on record for living standards growth.

The Resolution Foundation report uses an alternative measure of living standards, rather than the more widely used RHDI per person. This measure excludes some categories of income and some groups that would be included in living standards as measured by RHDI per person.