Today's #SpringStatement comes as households face a prolonged period of high inflation. The OBR has more than doubled its forecast for inflation in Q4 2022 to 8.7% – the highest in 40 years. This means pay packets will continue to shrink, along with vital income support like UC🧵 
The highest inflation in 40 years means that real household disposable income per person – a key measure of living standards – is forecast to fall faster in 2022-23 than in any other financial year on record (back to 1956-57) even after measures announced in the Spring Statement.
The current fall in real wages is now not projected to end until late 2023, and will leave average wages no higher in real terms than they were back in 2007.
GDP, meanwhile, has recovered from the pandemic more quickly than the OBR expected back in October. But the outlook is weaker in the near term with growth this year now expected to be 3.8% (compared with 6% in the OBR’s previous forecast).
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