Wage flexibility in the UK has helped support employment levels and household income. The government’s strategy for delivering sustainable increases in living standards is to support economic growth and get more people into work. Since the election the UK has had the fastest employment growth in the G7 (plus Australia). Employment has increased by 1.7 million since the Coalition came to power and this Government has taken decisive action to support working families, by raising the personal allowance, freezing fuel duty, and introducing tax-free childcare.

The Government believes that individuals should be trusted with their pension savings; it should not be for the state to dictate how someone spends their savings in retirement.

The new right to free and impartial guidance at retirement will help savers make confident and informed decisions on how they use their pension savings, making sure that they are clear on their retirement income options before they make any decisions about what to do with their savings.

The Government supports all employers who choose to pay the living wage and encourages businesses to pay the living wage where it is affordable. The majority of Government departments already pay their employees above the living wage.

It is for workers and employers to decide the level of wages above the National Minimum Wage based on current circumstances. This includes the Government as an employer and procurer.

The Government's central strategy to deliver improved living standards is to support a sustained and responsible economic recovery. The Government is determined to ensure that no one is left behind as the economy recovers and recognises immediate pressures on households. Since 2010 the Government has responded with a range of policy interventions to help raise living standards for all. The Personal Allowance will increase to £10,000 a year ahead of schedule and fuel duty and council tax have been frozen.

The Office for Budget Responsibility (OBR) is responsible for producing independent economic and fiscal forecasts, including house price forecasts. They will publish the next Economic and Fiscal Outlook at Autumn Statement which will take the impact of Help to Buy into account.

The Government provide a number of benefits and services targeted at families with children, some of which are universal, such as 15 free hours a week early education for three and four year-olds and some of which are targeted on those on lower incomes, such as the child tax credit, free school meals, Healthy Start and—from September 2013—the new free early education entitlement for two year-olds.

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The Government are committed to reducing the deficit and promoting the sustainability of public finances, while ensuring that taxation is designed to support growth and enhance work incentives. By 2015-16, the Government will have reduced the corporate tax burden by £6 billion a year and spent £10 billion a year on the personal allowance. The cumulative increases in the personal allowance introduced by this Government will lift 2.2 million people out of income tax by April 2013.

The Government are taking action to support households with their living costs. The Personal Allowance will increase to £10,000, a year ahead of schedule to support hard working individuals. Fuel duty has been frozen for 24 months and the Government have cancelled the increase planned for September. The Government have also announced a third council tax freeze, as well as a two-year reduction in the rail fare cap.

The Government consider hypothecation, or earmarking of revenues for a particular spending purpose, as an inefficient way to manage the public finances.

Income from taxes and other revenues are pooled in the Consolidated Fund and are then distributed to enable spending to be prioritised. This separation of revenue raising and spending allows the Government to allocate resources efficiently across the economy. To pre-commit a single revenue stream in such a way would undermine this efficient allocation of resources.

The Government keep the tax system under review. Any announcements will be made as part of the usual budget cycle.

Throughout the current spending review period, the Government have made a strong commitment to adult social care, prioritising an additional £7.2 billion over four years. In the context of a challenging local government settlement, this provides the resources for local authorities to protect access to care.