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To ask the Chancellor of the Exchequer, what steps the Treasury is taking to evaluate the potential impact of energy bill increases on domestic inflation and household disposable income.
To ask the Chancellor of the Exchequer, what steps the Treasury is taking to evaluate the potential impact of energy bill increases on domestic inflation and household disposable income.
The Government is closely monitoring energy prices and their potential impact on inflation and household incomes.
This Government is also committed to helping households with the cost of living: from 1 October, VAT will be removed from domestic electricity bills, which Ofgem has confirmed will take around £45 off the annual Ofgem price cap. This comes on top of action taken at the last Budget to remove around £150 from household energy bills, reducing inflation by around 0.2 percentage points in 2026/27.
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...
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...
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.
Debt levels affect how much households spend. Find the latest data on UK household debt, mortgage rates and insolvencies.
Debt levels affect how much households spend. Find the latest data on UK household debt, mortgage rates and insolvencies.
To ask His Majesty's Government, further to the Written Answer by Lord Livermore on 8 July (HL1794), what is the source of the data provided, including a direct link to where it is published; and what is the quarterly breakdown of the annualised data provided from Q1 2016 to Q1 2026.
To ask His Majesty's Government, further to the Written Answer by Lord Livermore on 8 July (HL1794), what is the source of the data provided, including a direct link to where it is published; and what is the quarterly breakdown of the annualised data provided from Q1 2016 to Q1 2026.
Real household disposable income (RHDI) is reported by the ONS as part of the UK Economic Accounts, available here: UK Economic Accounts - Office for National Statistics. Due to quarterly volatility, RHDI per capita is best suited to annual comparisons. The previous response noted that RHDI per capita was £26,159 in 2019 (Q1 2019 to Q4 2019), compared to £26,187 in the year to Q1 2026 (Q2 2025 to Q1 2026).
The quarterly data is provided in the table below:
Quarter | RHDI per capita |
Q1 2016 | 6,336 |
Q2 2016 | 6,340 |
Q3 2016 | 6,286 |
Q4 2016 | 6,235 |
Q1 2017 | 6,208 |
Q2 2017 | 6,347 |
Q3 2017 | 6,359 |
Q4 2017 | 6,381 |
Q1 2018 | 6,424 |
Q2 2018 | 6,374 |
Q3 2018 | 6,389 |
Q4 2018 | 6,475 |
Q1 2019 | 6,459 |
Q2 2019 | 6,542 |
Q3 2019 | 6,554 |
Q4 2019 | 6,604 |
Q1 2020 | 6,488 |
Q2 2020 | 6,368 |
Q3 2020 | 6,540 |
Q4 2020 | 6,562 |
Q1 2021 | 6,618 |
Q2 2021 | 6,634 |
Q3 2021 | 6,577 |
Q4 2021 | 6,449 |
Q1 2022 | 6,465 |
Q2 2022 | 6,311 |
Q3 2022 | 6,299 |
Q4 2022 | 6,386 |
Q1 2023 | 6,305 |
Q2 2023 | 6,363 |
Q3 2023 | 6,338 |
Q4 2023 | 6,356 |
Q1 2024 | 6,448 |
Q2 2024 | 6,455 |
Q3 2024 | 6,559 |
Q4 2024 | 6,649 |
Q1 2025 | 6,610 |
Q2 2025 | 6,562 |
Q3 2025 | 6,513 |
Q4 2025 | 6,584 |
Q1 2026 | 6,529 |
Notes on the data: RHDI per capita is calculated by dividing real household disposable income (ONS variable NRJR) by total population (ONS variable EBAQ).
This briefing provides statistics and forecasts for household debt, guidance on how to interpret debt statistics and analysis on how debt effects the economy.
This briefing provides statistics and forecasts for household debt, guidance on how to interpret debt statistics and analysis on how debt effects the economy.
To ask His Majesty's Government whether real household disposable income per capita is higher or lower than before the COVID-19 pandemic.
To ask His Majesty's Government whether real household disposable income per capita is higher or lower than before the COVID-19 pandemic.
On an annual basis, real household disposable income (RHDI) per person is higher now than it was before the pandemic. According to the latest Office for National Statistics data, RHDI per capita was £26,159 in 2019, compared to £26,187 in the year to Q1 2026. Given the volatility of quarterly data, annual figures are more suitable for making comparisons over time.
Household living standards have been rising in the past 2 years, following a series of major global shocks. Since the start of this Parliament, RHDI per capita has risen by 1.1%, after falling in the last Parliament for the first time on record. This leaves the average person's real disposable income around £600 higher in the past year than the final year of the previous Parliament. The independent Office for Budget Responsibility's Spring Forecast 2026 projects that RHDI per capita will grow by 3.5% over this Parliament.
The Chancellor set out a package of measures on 21 May to support families and businesses. This covered:
- A package to support motorists including through changes to fuel duty,
the Heavy Goods Vehicle (HGV) Levya 12-month Vehicle Excise Duty (VED) holiday for the majority of HGVs and tax-free...
The Chancellor set out a package of measures on 21 May to support families and businesses. This covered:
- A package to support motorists including through changes to fuel duty,
the Heavy Goods Vehicle (HGV) Levya 12-month Vehicle Excise Duty (VED) holiday for the majority of HGVs and tax-free...
To ask the Chancellor of the Exchequer, what assessment she has made of the impact of the level of taxes on the disposable incomes of working households.
To ask the Chancellor of the Exchequer, what assessment she has made of the impact of the level of taxes on the disposable incomes of working households.
The Office for National Statistics publishes the “Effects of taxes and benefits on UK household income” report which sets out the level of taxes paid and benefits received by household type and income group. This includes direct and indirect taxes, as well as benefits in cash and in kind, to show their combined effect on household income. The most recent data is from the financial year 2023–24.
To ask the Chancellor of the Exchequer, what estimate she has made of (a) the total cost to the Exchequer and (b) the potential impact on inflation and household disposable income of the measures announced in her statement of 21 May 2026 on the Government’s economic response to the conflict...
To ask the Chancellor of the Exchequer, what estimate she has made of (a) the total cost to the Exchequer and (b) the potential impact on inflation and household disposable income of the measures announced in her statement of 21 May 2026 on the Government’s economic response to the conflict...
The Chancellor set out a package of measures on 21 May to support families and businesses. This covered:
- A package to support motorists including through changes to fuel duty, the Heavy Goods Vehicle (HGV) Levy and tax-free mileage rates, estimated to cost approximately £600 million in total across the forecast period.
- A temporary reduced rate of VAT on children’s meals in restaurants, children’s tickets for theatres and cinemas and tickets for certain family attractions, estimated to cost approximately £300 million in 2026-27.
- £350m in sectoral support for critical chemicals and £120m for ceramics over the forecast period; and over £100m in support for the bus sector this year, including funding free travel for children aged 5-15 on local buses throughout August.
The government is also engaging businesses on a tariffs suspension package. The precise fiscal impact of that package depends on final decisions following said process of business engagement.
The government also announced reforms to the Foreign Branch Exemption regime, which are expected to raise hundreds of millions a year and fund the package of measures set out above.
The costings of measures will be subject to certification by the OBR and set out in the next forecast in the usual way. The OBR will also publish an updated inflation and real household disposable income outlook, reflecting the impact of these and other policy measures announced alongside or before that forecast.
This briefing covers trends in income inequality, the impact of the rising cost of living, and inequality between regions, ethnic groups and disability status.
This briefing covers trends in income inequality, the impact of the rising cost of living, and inequality between regions, ethnic groups and disability status.
To ask the Secretary of State for Housing, Communities and Local Government, if he will make an assessment of the potential impact of above-inflation council tax increases in each year of the multi-year finance settlement on family disposable incomes.
To ask the Secretary of State for Housing, Communities and Local Government, if he will make an assessment of the potential impact of above-inflation council tax increases in each year of the multi-year finance settlement on family disposable incomes.
Council tax levels are decided by local authorities. For the vast majority of councils, the government intends to maintain a core 3% referendum principle and a 2% adult social care precept for each year of the multi-year settlement. Councils are required to put in place council tax support schemes to support those on low incomes.
Referendum principles must be determined by the Secretary of State annually and approved by the House of Commons. This will be done each year as part of the annual local government finance settlement in the usual way.
To ask the Chancellor of the Exchequer, what assessment she has made of the potential impact of rent inflation on the level of disposable incomes and consumer spending.
To ask the Chancellor of the Exchequer, what assessment she has made of the potential impact of rent inflation on the level of disposable incomes and consumer spending.
According to the latest ONS data, annual rental price slowed to 3.5% in January 2026, after peaking at 9.1% in March 2024. However, the Government recognises the pressure that rental inflation places on the finances of households in the private rental sector.
The most effective way to keep rents down is by increasing housing supply across the UK. The Government’s Plan for Change has set a milestone to build 1.5m homes in this Parliament. This will help address the housing crisis which impacts everyone, especially private renters. The Government has also passed the Renter’s Rights Act 2025 which empowers 11 million renters in England to challenge unreasonable rent increases, giving them greater security and stability.
Over recent weeks, students and graduates have written to me about the broken student loans system. They tell me about the mental stress caused by punitive interest rates, and that the planned freeze of the repayment threshold will impact their living standards when they aspire to earn more and spend...
Over recent weeks, students and graduates have written to me about the broken student loans system. They tell me about the mental stress caused by punitive interest rates, and that the planned freeze of the repayment threshold will impact their living standards when they aspire to earn more and spend...
As I said previously, we inherited this system from the previous Government—they designed it and delivered it—and it is not working to the benefit of students. We are making changes to improve the system and make it fairer, and will continue to do so, but I will draw my hon....
As I said previously, we inherited this system from the previous Government—they designed it and delivered it—and it is not working to the benefit of students. We are making changes to improve the system and make it fairer, and will continue to do so, but I will draw my hon....
To ask the Chancellor of the Exchequer, what was the evidential basis for the decision to freeze the student loan repayment threshold for graduates; and what assessment he has made of the potential impact of this on graduates' disposable incomes.
To ask the Chancellor of the Exchequer, what was the evidential basis for the decision to freeze the student loan repayment threshold for graduates; and what assessment he has made of the potential impact of this on graduates' disposable incomes.
The fiscal situation this government inherited means we’ve had to make tough but fair choices, including on student loan repayment threshold freezes.
Student loan borrowers repay a portion of their income (typically 9%) above the repayment threshold. A Plan 2 graduate earning £30,000 will repay only around £4 a month in FY2026–27. The student finance system is heavily subsidised by government, and lower-earning graduates will always be protected, with any outstanding loan and interest cancelled at the end of the repayment term. It is right that those who are able to repay do so.
The Department for Education has published analysis of the impact of the repayment threshold freeze on total repayments here.
To ask the Chancellor of the Exchequer, whether her Department has undertaken analysis of how student loan repayment arrangements affect (1) borrowers’ disposable income and (2) their ability to access mortgages.
To ask the Chancellor of the Exchequer, whether her Department has undertaken analysis of how student loan repayment arrangements affect (1) borrowers’ disposable income and (2) their ability to access mortgages.
Student loan repayments are taken into account as part of affordability assessments for mortgage applications, but student loans are very different from a mortgage or credit card debt as repayments are determined by income, not the amount borrowed. For example, a Plan 2 graduate earning £30,000 will repay only around £4 a month in FY2026–27.
The most sustainable long-term method to improve housing affordability and help people into homeownership is to increase the supply of housing. This Government has recommitted to delivering 1.5 million homes over this Parliament.
The government is committed to making home ownership more accessible by supporting first-time buyers, and welcomes clarifications from the Financial Conduct Authority (FCA), which should allow customers to borrow around 10% more on the same income.
Committee stage: except clauses 1 to 8, schedules 1 and 2, clauses 9, 10, 69 and 62, schedule 12, clauses 63 to 68 and 83 to 85, schedule 13, clause 86 and any new clauses or new schedules relating to the subject matter of these clauses and schedules. Clauses 156 to 224 agreed to. Schedule 19 agreed to. Clause 225 agreed to as amended. Clauses 226 to 258 agreed to. Schedule 20 agreed to. Schedule 21 agreed to as amended. Schedule 22 agreed to. Amendment to clause 259 negatived on division (6 votes to 11). Clauses 259 to 279 agreed to. New clauses 2, 10, 22, 25 negatived on division (6 votes to 10 respectively). New clause 33, discussed with new clause 35, withdrawn. New clause 34 withdrawn. New clause 36 negatived on division (6 votes to 10). Bill, as amended, to be reported (Bill 377). Committee rose. Written evidence reported to the House.
Committee stage: except clauses 1 to 8, schedules 1 and 2, clauses 9, 10, 69 and 62, schedule 12, clauses 63 to 68 and 83 to 85, schedule 13, clause 86 and any new clauses or new schedules relating to the subject matter of these clauses and schedules. Clauses 156...
I beg to move,
That this House has considered the impact of the Autumn Budget 2025 on graduates.
It is a pleasure to serve under your chairmanship, Mr Turner. I thank the Minister for taking time from his busy schedule to attend the debate today. I will start by painting a picture...
I beg to move,
That this House has considered the impact of the Autumn Budget 2025 on graduates.
It is a pleasure to serve under your chairmanship, Mr Turner. I thank the Minister for taking time from his busy schedule to attend the debate today. I will start by painting a picture...