The latest OBR forecasts suggest that household incomes will grow by 0.6% per year over the course of the current parliament.
While this would be an improvement on the previous parliament, it would still be the third worst parliament for income growth on record.
More from IFS
Understand this issue

Rank of local authorities by average household income compared to rank by average consumption after housing costs
On average, London local authorities rank at the top of the income distribution, but are bottom of the net-of-housing consumption distribution.
11 April 2025

Average household consumption spending before and after housing costs, and mean weekly per-capita income, in different local authorities, 2018–2019
Londoners may have the highest average incomes, but their household spending once you account for housing costs is lower than other regions.
11 April 2025

Two-child limit mitigation in Scotland would help larger poor families but policy design could harm work incentives
Mitigating the two-child limit policy would be an effective way to reduce child poverty, but designing an effective policy is not straightforward.
14 March 2025
Policy analysis

How did tax credits transform the UK welfare system?
Over 20 years since they were introduced, tax credits have now been replaced by universal credit. How did they change the UK welfare system?
4 April 2025

Which places have the highest standard of living?
Measuring living standards using average household spending gives a starkly different picture of regional inequalities than using average income.
11 April 2025

Impact of reforms on annual disposable household income, 2024–25 to 2029–30
On top of inherited plans, personal tax and benefit measures will on average reduce incomes by £1,400 over this parliament.
31 October 2024
Academic research

The intergenerational elasticity of earnings: Exploring the mechanisms
3 June 2024

Small area consumption estimates for local authorities in Great Britain
In this paper, we estimate average equivalised consumption measures across local authority districts in Great Britain.
11 April 2025

Very weak income growth for poor pensioners has meant rising pensioner poverty since 2011
19 July 2024