Latest news with #livingStandards
Yahoo
09-07-2025
- Politics
- Yahoo
Labour MPs form new group as they urge prime minister to focus on living standards to help ward off Reform
A group of Labour MPs has urged Sir Keir Starmer to do more to tackle the rising cost of living amid fears the party could lose the next election to Reform. The MPs are launching a new splinter group, the living standards coalition, to shift the focus to everyday concerns such as food, energy bills and a letter to the prime minister, the group's members warned that one question would be on the mind of voters at the next election: "Did this government make me better off?" "After 14 years of living in a no-growth economy and with some of the highest bills in Europe, our constituents are struggling to make ends meet," they said. "More of them are turning away from democracy and towards populism as they can't afford a decent life." The coalition is the latest splinter group to form since the party's landslide election victory a year ago. Other groups include the Labour growth group, which focuses on delivering economic growth, and MPs in who are alive to the threat Reform poses in their seats. A YouGov poll last month found was on track to- with combined support for the and Labour collapsing to less than half of the national vote. While the MPs stress they are supportive of the actions the government has taken so far, the forming of a new group could be interpreted as a sign of restlessness in the parliamentary party, especially given the fallout of In the letter, first reported by The Guardian, the MPs write: "We are here to support your efforts to go further and faster on raising living standards. We come from every corner of our party. "To raise living standards, we support government interventions that will help to increase incomes and lower costs. Read more: "We welcome interventions that will raise incomes. We welcome investment in labour- intensive building, education, and healthcare jobs that will raise living standards through employment. We welcome the Employment Rights Bill that will get wages rising." They added: "We know that some will try to stop us raising living standards. "They will try to block us from building the affordable housing and windfarms we need to get bills down. They oppose the way we have raised revenue from the very wealthiest to invest in childcare and our NHS. "We are glad you are keeping this government's focus on raising living standards. We stand in support of you. It is the most important issue to our constituents and the country."
Sky News
09-07-2025
- Politics
- Sky News
Labour MPs form new group as they urge prime minister to focus on living standards to help ward off Reform
A group of Labour MPs has urged Sir Keir Starmer to do more to tackle the rising cost of living amid fears the party could lose the next election to Reform. The MPs are launching a new splinter group, the living standards coalition, to shift the focus to everyday concerns such as food, energy bills and housing. In a letter to the prime minister, the group's members warned that one question would be on the mind of voters at the next election: "Did this Labour government make me better off?" "After 14 years of living in a no-growth economy and with some of the highest bills in Europe, our constituents are struggling to make ends meet," they said. "More of them are turning away from democracy and towards populism as they can't afford a decent life." The coalition is the latest splinter group to form since the party's landslide election victory a year ago. Other groups include the Labour growth group, which focuses on delivering economic growth, and MPs in Red Wall constituencies in the North who are alive to the threat Reform poses in their seats. A YouGov poll last month found Reform was on track to get the most seats if an election were held this year - with combined support for the Conservatives and Labour collapsing to less than half of the national vote. While the MPs stress they are supportive of the actions the government has taken so far, the forming of a new group could be interpreted as a sign of restlessness in the parliamentary party, especially given the fallout of last week's botched welfare vote. In the letter, first reported by The Guardian, the MPs write: "We are here to support your efforts to go further and faster on raising living standards. We come from every corner of our party. "To raise living standards, we support government interventions that will help to increase incomes and lower costs. "We welcome interventions that will raise incomes. We welcome investment in labour- intensive building, education, and healthcare jobs that will raise living standards through employment. We welcome the Employment Rights Bill that will get wages rising." They added: "We know that some will try to stop us raising living standards. "They will try to block us from building the affordable housing and windfarms we need to get bills down. They oppose the way we have raised revenue from the very wealthiest to invest in childcare and our NHS.
Yahoo
30-06-2025
- Business
- Yahoo
Families' disposable income slumps in blow to Labour
British families' disposable income has fallen for the first time in nearly two years, delivering a blow to Sir Keir Starmer's pledge to raise living standards. Rising inflation led to households' real disposable income per head falling by 1pc in the first three months of the year, which dropped for the first time since summer 2023 That was despite the economy expanding by 0.7pc over the quarter, in part because of a 2pc jump in wage growth. The latest disposable income data will serve as a setback for the Prime Minister, who last year made higher living standards one of his six key targets. The Government relies on real disposable household income for tracking its progress against this goal, with the metric measuring how much families have left to spend after tax. New figures from the Office for National Statistics (ONS) show that disposable income fell by 1pc in the first quarter after previously rising by 1.8pc in the final three months of 2024. This will pile pressure on Sir Keir in one of his most difficult periods in Downing Street, as he has been forced into a U-turn on planned welfare reforms after a revolt from backbench Labour MPs. He is now preparing to unveil a costly package of concessions on disability benefits, piling further strain on Britain's public finances after he also backtracked on planned cuts to winter fuel payments. If the economy fails to improve quickly, Rachel Reeves, the Chancellor, may be forced to raise taxes in her upcoming autumn Budget. In a small reprieve for the Prime Minister, the ONS confirmed on Monday that the economy grew a healthy 0.7pc in the first three months of 2025, the fastest in the G7. Households also saved slightly less, with the share of disposable income going straight into savings accounts falling to 10.9pc, down from 12pc at the end of last year. Any further falls could raise hopes that higher spending will give the economy a much-needed boost, as families are still sitting on big nest eggs from Covid. However, economists warned that tax rises, the threat of tariffs and geopolitical challenges mean the picture looks less rosy for the rest of the year. Thomas Pugh, chief economist at consultancy RSM, said: 'The economy is facing more headwinds in the second half of the year than it did in Q1, uncertainty remains elevated, inflation will be around 3.5pc and wage growth will probably slow further.' The ONS said the fall in disposable incomes was 'mainly' because of high inflation. Meanwhile, the other metric that the Government uses to track living standard progress, GDP per head, rose by 0.6pc over the same period. Broaden your horizons with award-winning British journalism. Try The Telegraph free for 1 month with unlimited access to our award-winning website, exclusive app, money-saving offers and more.
Telegraph
30-06-2025
- Business
- Telegraph
Families' disposable income slumps in blow to Labour
British families' disposable income has fallen for the first time in nearly two years, delivering a blow to Sir Keir Starmer's pledge to raise living standards. Rising inflation led to households' real disposable income per head falling by 1pc in the first three months of the year, which dropped for the first time since summer 2023 That was despite the economy expanding by 0.7pc over the quarter, in part because of a 2pc jump in wage growth. The latest disposable income data will serve as a setback for the Prime Minister, who last year made higher living standards one of his six key targets. The Government relies on real disposable household income for tracking its progress against this goal, with the metric measuring how much families have left to spend after tax. New figures from the Office for National Statistics (ONS) show that disposable income fell by 1pc in the first quarter after previously rising by 1.8pc in the final three months of 2024. This will pile pressure on Sir Keir in one of his most difficult periods in Downing Street, as he has been forced into a U-turn on planned welfare reforms after a revolt from backbench Labour MPs. He is now preparing to unveil a costly package of concessions on disability benefits, piling further strain on Britain's public finances after he also backtracked on planned cuts to winter fuel payments. If the economy fails to improve quickly, Rachel Reeves, the Chancellor, may be forced to raise taxes in her upcoming autumn Budget. In a small reprieve for the Prime Minister, the ONS confirmed on Monday that the economy grew a healthy 0.7pc in the first three months of 2025, the fastest in the G7. Households also saved slightly less, with the share of disposable income going straight into savings accounts falling to 10.9pc, down from 12pc at the end of last year. Any further falls could raise hopes that higher spending will give the economy a much-needed boost, as families are still sitting on big nest eggs from Covid. However, economists warned that tax rises, the threat of tariffs and geopolitical challenges mean the picture looks less rosy for the rest of the year. Thomas Pugh, chief economist at consultancy RSM, said: 'The economy is facing more headwinds in the second half of the year than it did in Q1, uncertainty remains elevated, inflation will be around 3.5pc and wage growth will probably slow further.' The ONS said the fall in disposable incomes was 'mainly' because of high inflation.
The Guardian
30-06-2025
- Business
- The Guardian
UK households hit by squeeze on living standards despite fastest growth in G7
UK households faced a renewed cost of living squeeze in the first three months of 2025 amid increases in taxes and inflation, official figures show, despite the economy growing at the fastest rate in the G7. The Office for National Statistics said an important measure of living standards – real household disposable income per head – fell by 1% in the first quarter after growth of 1.8% in the final three months of 2024, in the first quarterly decline for almost two years. The households' saving ratio – which estimates the percentage of disposable income Britons save rather than spend – slumped by 1.1 percentage points to 10.9%, although this remains historically high. The signs of a fresh hit to living standards come despite the latest snapshot confirming that the UK economy grew by 0.7% in the first quarter, the fastest rate in the G7 group of rich nations. Liz McKeown, the ONS director of economic statistics, said: 'The saving ratio fell for the first time in two years this quarter, as rising costs for items such as fuel, rent and restaurant meals contributed to higher spending, although it remains relatively strong.' Ministers had welcomed the initial first-quarter growth estimate as evidence that Labour's economic policies were starting to bear fruit after a rocky first few months in office. However, the more detailed snapshot highlights the squeeze on living standards, which risks undermining Keir Starmer's promise for households to feel the benefits. Raising real household disposable income levels per person by the end of the parliament had been included by the prime minister among his six 'milestones' for government in a major speech late last year, saying the metrics would 'give the British people the power to hold our feet to the fire'. While the measure fell over the course of the last parliament under the last Conservative government for the first time in modern history, it is expected to grow only marginally by the time of the next election. The latest figures from the ONS showed the fall in the first quarter was driven by elevated levels of inflation and taxes on income. Before inflation, the ONS said, growth in gross disposable income was helped by a £5.9bn rise in wages and salaries, but was offset by a £4.4bn rise in taxes. The fall in the households' saving ratio was driven by a decline in non-pension savings, alongside a rise in consumer spending. While the fall could indicate higher living costs are hitting saving levels, some analysts said the figures signalled a recovery in consumer confidence. Sign up to Business Today Get set for the working day – we'll point you to all the business news and analysis you need every morning after newsletter promotion 'The news that the household saving rate fell from 12.0% in Q4 to 10.9% in Q1 provides some encouraging signs that consumer spending growth will edge higher in the quarters ahead,' said Ruth Gregory, the deputy chief UK economist at the consultancy Capital Economics. The independent Office for Budget Responsibility has forecast GDP growth of 1% for 2025 as a whole, but will revisit that projection in the run-up to Rachel Reeves's autumn budget. January to March was the period when exporters were braced for Donald Trump's tariffs to come into force – prompting some to front-load sales to the US market. The UK has since struck a deal with the US, which came into force on Monday morning, to mitigate the steepest tariffs – but the Bank of England governor, Andrew Bailey, has warned that trade policy uncertainty has clouded the outlook for the economy.
