The Living Standards Outlook 2018

In this report, our first dedicated Living Standards Outlook, we explore the prospects for household incomes and inequalities over the next five years. Our annual Living Standards Audit, due to be published in the summer, will focus on historical trends in living standards. This report projects forwards the real spending power of typical households and the distribution of income to 2022-23. Results incorporate the latest household income data (for 2015-16), what we know about the key drivers of living standards to 2017-18 and the latest forecasts of economic aggregates from the Office for Budget Responsibility (OBR). The report also explores the extent to which different policy and economic scenarios could affect what is a weak and inequality-increasing outlook for living standards. And it provides, for the first time, a distributional assessment of the impact of increasing minimum pension contribution rates via auto-enrolment.

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