Early evening summary
Kemi Badenoch has been criticised by Labour and the Lib Dems for suggesting that Keir Starmer was deliberately avoiding PMQs when he attended the Nato summit this week, and the G7 last week. The Lib Dems called her “Bungling Badenoch” and Ed Davey, their leader, said Badenoch seemed to be suggesting it was now Tory policy to prioritise PMQs ahead of attending major international summits. (See 11.59am and 4.09pm.) Badenoch said Starmer did not like answering questions and could easily have moved PMQs to Thursday if he had wanted to. (See 3.59pm.)
Poorer working age people expected to see their incomes fall in real terms by end of decade, Resolution Foundation says
The Resolution Foundation thinktank has also published a major report today – its living standards outlook 2025.
It says, overall, working-age people will be just 1% better off by the end of the decade.
The headline outlook for living standards is, at best, disappointing. In our central scenario, the typical annual real income of non-pensioners grows over the five years after 2024-25 but only slightly (1 per cent overall growth, or a cash increase of around £300 in total) – and our outlook for 2025-26 specifically remains poor with income flat (0 per cent growth).
But poorer working-age peope will be worse off, it says.
The outlook for the lower-income half of the non-pensioner population is even worse. In our central case, the average real incomes of this group would be 1 per cent (£200) lower in 2029-30 than in 2024-25. This compares to 1 per cent growth for the top half. The only projected year where the bottom half outperforms the top half is 2026-27, when the real value of basic benefit adequacy rises given lagged uprating plus the first of the planned above-inflation boosts. Coupled with net real income hits over the past five years, these projections would leave the bottom half worse off at the end of the 2020s than in 2019-20 (by 2 per cent) while the higher-income half would be slightly better off (by 1 per cent).
Updated