Cost of Living: Low Incomes
The question
To ask the Chancellor of the Exchequer, what steps she is taking to support (a) low and (b) middle-income households with the cost of living.
Answered by James Murray
Living standards, as measured by Real Household Disposable Income per capita, are expected to increase by an annual average of 0.5% over this parliament (Q3 2024 – Q2 2029). This is in stark contrast to the previous parliament which was the worst for living standards growth since ONS records began in 1955.
The Government has set out a Plan for Change, outlining our ambitious yet achievable milestones, including raising living standards in every part of the United Kingdom to ensure working people have more money in their pockets.
Specific actions already taken by the Government include: increasing to the National Living Wage from April 2025; extension of the Household Support Fund and Discretionary Housing Payments in England and Wales in 2025-26; and introduction of a new Fair Repayment Rate from April 2025 to cap debt repayments made through Universal Credit.
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