The OBRreport says RHDI (real household disposable income – one measure of living standards) is rising at a record slow rate – less than 0.1% per decade. That means, by the end of the decade, it will be just 1% higher than its pre-Covid level, it says.
Our central forecast represents a continuation of the historically weak growth in RHDI per person since the global financial crisis. Chart 2.7 shows the rolling 10-year average annual growth in RHDI per person. This slowed significantly in the aftermath of the financial crisis, due to lower growth in productivity and real wages. Growth reached a historic low over the 10 years to 2025-26, averaging just ¼ per cent a year, and we expect it to fall further in the near term. By 2029-30, our central forecast sees growth over the prior 10 years averaging less than 0.1 per cent a year. As a result, 10 years on from the onset of the pandemic, RHDI per person would be just 1 per cent higher than its pre-pandemic level.
Source: www.theguardian.com
