Disposable Income
The question
To ask the Chancellor of the Exchequer, with reference to HM Treasury annual report and accounts 2025 to 2026, HC 424, July 2026, page 15, what information his Department holds on the reasons for the 0.3% fall in Real Household Disposable Income per capita in 2025-26; and whether this remains a Plan for Change target.
Answered by Treasury
Real Household Disposable Income (RHDI) per capita fell by 0.3% in 2025-26, following growth of 3.0% in 2024-25. Growth in 2024-25 reflected strong labour income growth, including wages and salaries, whereas the largest contribution to the fall in 2025-26 came from higher consumer prices.
RHDI per capita remains 1.1% higher than at the start of this Parliament. This compares with a 2.3% decline over the previous Parliament, which remains the only Parliament on record in which living standards fell.
This Government will set out its economic strategy over the coming months. The Government continues to monitor a range of indicators of household economic wellbeing.
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