Economy & cost of living · Great Britain · 2007–2025

Average pay buys just 5% more than before the financial crash.

Average weekly pay in Great Britain bought 4.6% more in 2025 than in 2007. UK household disposable income per person was only 0.8% above its 2019 level.

Priority: Raise real household living standards through productivity and lower unavoidable costs. What would change it →

Evidence last reviewed 3 October 2026

Living standards · the household story

A home. The bills. What is left to live on?

House prices and rents over time, six different households, and what could make life more affordable.

Explore the evidence →

Overview

The short version

Three key measures

Who feels this most?

Averages hide two different stories. The price shock hit poorer households first and hardest: in October 2022 the lowest-income tenth faced 14.5% annual inflation against 11.3% for the highest, because energy and food take more of their budgets. Over the longer run, though, incomes after housing costs have grown a little faster at the bottom than at the top since 2000–01 — from a far lower base. Renters and recent buyers carry housing costs that these averages do not net off. Inflation by household type.

Then and now

1996 → 2025 · Pay: Great Britain · Prices: UK

A bigger pay packet. A harder home to buy.

Typical gross pay buys about £160 more a week after inflation (+26%), before tax, but a home takes more years of pay.

John is fictional. The figures compare national benchmarks, not one person’s actual finances.

Why this differs from the headline: the headline compares average (mean) weekly pay in 2007 and 2025, up 4.6% after inflation; John’s story compares median full-time pay in 1996 and 2025, up 26% — a different measure over a longer period that includes the growth before the crash, so the two do not contradict each other.

19962025

See the story and the figures

How much more does average pay buy than in 2000?

Pay’s buying power rose 18% from 2000 to 2007, and 4.6% in the 18 years since

Mean weekly earnings including bonuses, whole economy, adjusted for all prices (CPIH) by ONS, Great Britain, annual averages, as an index with 2000 = 100, 2000 to 2025. 2007, the pre-crash peak, is marked.

Great Britain · 2000 to 2025, calendar-year averages

1996–2026 displayed window · observations only. Shading marks years outside the displayed record.

Buying power of average weekly pay (2000 = 100)No observations shown100110120130axis does not start at 02000201020202000 = 100123.72007 peak: 118.32014: 110.8

Where did the gains go? What happened to pay →

Real pay rose steadily to 118.3 in 2007, about three-quarters of the whole gain since 2000. It then fell for years after the financial crisis, to 110.8 in 2014, first passed its 2007 level in 2021 — partly because pandemic job losses fell on lower-paid workers, which lifted the average — and was knocked back by the 2022 inflation shock. 2025 ended at 123.7: +23.7% on 2000, +4.6% on 2007.

Great Britain · 2000 to 2025, calendar-year averages · Official statistics; recent months may be revised

Sources, definitions and data — Pay’s buying power rose 18% from 2000 to 2007, and 4.6% in the 18 years since
Geography:
Great Britain — Employees (not the self-employed)
Measure:
Index of buying power, 2000 = 100 (not £)
Period:
2000 to 2025, calendar-year averages
Status:
Official statistics; recent months may be revised
Calculation:
Site calculation: each year's A3WX value divided by 2000's (£427 a week at 2015 prices) × 100. 2000 is the first year of the stored series. ONS rounds the annual values to whole pounds, so the index is accurate to about ±0.2.
Compare with:
2000 = 100; 2007 (the pre-crash peak) = 118.3
Not included / breaks:
An average (mean), pulled up by high earners; not the typical worker. Excludes the self-employed and Northern Ireland. Pay is not household income: tax, benefits and other earners are not counted. CPIH counts every price, including owner-occupied housing at its rental value, so mortgage payments are not in it — see the essential bills below.

Source: ONS, Average weekly earnings: real terms, whole economy, total pay, series A3WX (annual averages) (released 15 September 2026). Chart ECON-01.

View the data as a table
Year£ a week (2015 prices)Index (2000 = 100)Index (2007 = 100)
2000427100.084.6
2001442103.587.5
2002449105.288.9
2003457107.090.5
2004471110.393.3
2005482112.995.4
2006493115.597.6
2007505118.3100.0
2008505118.3100.0
2009495115.998.0
2010494115.797.8
2011487114.196.4
2012481112.695.2
2013475111.294.1
2014473110.893.7
2015483113.195.6
2016490114.897.0
2017489114.596.8
2018492115.297.4
2019500117.199.0
2020504118.099.8
2021520121.8103.0
2022512119.9101.4
2023514120.4101.8
2024524122.7103.8
2025528123.7104.6

Scroll the table sideways to see every column.

What a week’s pay buys — essential bills, 1996 to 2025

The official figure above and the bills below answer different questions. Real pay is adjusted by CPIH, which covers everything households buy — including items whose prices rose slowly or fell — and counts owner-occupied homes at what they would cost to rent, so mortgage payments are not in it. The panel asks a narrower question: how far does a week’s pay go on particular essentials?

Essentials take a larger share of lower-income budgets, so the narrower view matters more to them. Each bill is shown on its own; they are not added up, because there are no official weights for an “essentials” basket. ONS’s Household Costs Indices, at the end of this section, are its official view of all household costs, mortgage interest included.

These cards do not use the headline’s measure. The headline compares average (mean) weekly pay in 2007 and 2025: 4.6% more after inflation. The cards use median full-time pay from 1996 to 2025, so the “Everything” card shows +26.4% — a longer period, including the growth before the crash, and a different pay measure. The two figures do not contradict each other.

  • Everything (the official measure)

    +26.4%

    A week’s pay buys 26.4% more of everything than in 1996, on median full-time pay deflated by CPIH.

    Great Britain · 1996–2025 · UK Facts calculation from official data · ONS earnings, CPIH L522

  • Food and soft drinks

    +18.2%

    A week’s pay buys 18% more food than in 1996.

    Median full-time pay £301 → £767 a week (×2.55; ONS NES 1996, ASHE 2025). Food prices ×2.15 (CPI D7BU).

    1996–2025 · UK Facts calculation from official data · ONS, CPI index 01: food and non-alcoholic beverages

  • Electricity

    −35.7%

    A week’s pay buys 36% less electricity than in 1996.

    Median full-time pay £301 → £767 a week (×2.55; ONS NES 1996, ASHE 2025). Electricity prices ×3.96 (CPI D7DT).

    1996–2025 · UK Facts calculation from official data · ONS, CPI index 04.5.1: electricity

  • Monthly payment, 95% mortgage

    −40.0%

    A month’s payment took 1.2 weeks’ median pay in 1996 and 2.0 in 2025.

    £356 → £1,510 a month (×4.24); average UK price £53,415 → £267,281; quoted rate 6.91% → 5.17%. Derived, 25-year repayment.

    1996–2025 · UK Facts calculation from official data · Bank of England, quoted household interest rates: 2-year fixed mortgage, 95% loan to value

  • Private rent

    +3.9%

    Since 2015 (no consistent earlier series), a week’s pay buys 4% more private rent.

    Average UK rent £925 → £1,345 a month; rents ×1.45, pay ×1.51 (ONS PIPR).

    2015–2025 · UK Facts calculation from official data · ONS, Price Index of Private Rents, UK: monthly price statistics

  • A pint in the pub

    −9%

    On ONS’s average price of a pint of lager, a week’s pay bought 174 pints in 1996 and 159 in 2025. ONS’s all-beer pub price index gives −2% over the same years.

    Median full-time pay £301 → £767 a week (×2.55; ONS NES 1996, ASHE 2025). Average lager 173p → 483p (January 2025, last published); beer index (RPI DOBI) ×2.59. The average price also reflects a shift to dearer beers.

    1996–2025 · UK Facts calculation from official data · ONS, RPI average price: draught lager, per pint

How far does a week’s pay go on essential bills?

Since 2000, a week’s pay buys more food and pub beer but less electricity, and covers less of a new mortgage payment

How much of each item a week’s average pay buys, as an index with 2000 = 100: average weekly pay in cash terms divided by the item’s price, Great Britain pay and UK prices, 2000 to 2025. Below 100, a week’s pay buys less than in 2000.

Pay: Great Britain. Prices: United Kingdom · 2000 to 2025, calendar-year averages

1996–2026 displayed window · observations only. Shading marks years outside the displayed record.

What a week’s pay buys (2000 = 100)No observations shown50100axis does not start at 02000201020202000 = 100All prices 124Food 109Pub beer 103Mortgage 82Electricity 522007 peak

Mortgage assumptions. UK Facts calculation, not an official statistic: a 95% loan on the UK average house price (all buyers, UK House Price Index), repaid over 25 years at that year’s average quoted 2-year fixed rate for 95% loan-to-value mortgages (Bank of England IUM2WTL), as if the rate applied for the whole term. First-time buyers usually pay less than the all-buyer average, but the official first-time-buyer price only starts in 2011. In 2000: £534 a month on a £78,408 loan at 6.59%; in 2025: £1,510 on £253,917 at 5.17% (95% loan, 25 years).

Measured against all prices, a week’s pay buys 23.7% more than in 2000. Against single essentials the answer differs: +8.7% for food, +3.3% for beer in a pub, −17.8% for the monthly payment on a 95% mortgage and −48.4% for electricity. The mortgage line was lowest in 2007, not today. Each line is one item; together they are not a household budget.

Pay: Great Britain. Prices: United Kingdom · 2000 to 2025, calendar-year averages · UK Facts calculation from official statistics; the mortgage line is a derived estimate with stated assumptions

Sources, definitions and data — Since 2000, a week’s pay buys more food and pub beer but less electricity, and covers less of a new mortgage payment
Geography:
Pay: Great Britain. Prices: United Kingdom — Employees (mean pay); prices across all households
Measure:
Index of what a week’s pay buys, 2000 = 100 (not £)
Period:
2000 to 2025, calendar-year averages
Status:
UK Facts calculation from official statistics; the mortgage line is a derived estimate with stated assumptions
Calculation:
UK Facts calculation: (pay in the year ÷ pay in 2000) ÷ (price in the year ÷ price in 2000) × 100, using ONS KAB9 for pay and, for prices, D7BU (food), D7DT (electricity) and DOBI (beer in pubs). “All prices” is ONS’s own real pay series (A3WX, CPIH-deflated) rebased. The mortgage line uses the derived payment described below.
Compare with:
2000 = 100; the 2007 level is marked on the all-prices line
Not included / breaks:
This chart starts in 2000 because ONS’s average weekly earnings series starts then; the cards above use 1996 with median full-time pay. The mortgage line has a gap for 2008–2013: the Bank of England publishes no 95% loan-to-value rate when too few such mortgages are on offer. Price indices hold quality and quantity constant; they are not what households actually spent. Pay is a mean, pulled up by high earners. Private rent is shown separately from 2015 (ECON-06b).

Source: ONS, Average weekly earnings, whole economy, total pay (£, cash terms), series KAB9 (released 15 September 2026). Chart ECON-06.

View the data as a table
YearPay (£ a week, cash)All pricesFoodPub beerElectricity95% mortgage
2000313100.0100.0100.0100.0100.0
2001329103.5101.3102.3106.1105.4
2002339105.2103.5102.5108.898.3
2003350107.0105.6102.8111.393.3
2004365110.3109.5104.2109.580.0
2005382112.9112.8105.5103.680.9
2006400115.5115.2106.889.177.1
2007420118.3115.8107.986.667.4
2008434118.3109.8106.877.5no figure
2009434115.9104.0103.474.1no figure
2010444115.7102.9102.077.7no figure
2011455114.1100.199.174.2no figure
2012461112.698.297.271.2no figure
2013466111.295.696.167.0no figure
2014471110.896.995.364.282.4
2015482113.1101.895.765.986.2
2016494114.8106.996.167.787.5
2017505114.5106.995.764.884.4
2018520115.2107.996.361.587.3
2019538117.1110.197.759.396.2
2020547118.0111.297.560.290.7
2021580121.8117.5100.759.987.3
2022616119.9112.6101.742.679.8
2023659120.4105.2101.140.169.3
2024694122.7107.9101.749.875.4
2025728123.7108.7103.351.682.2

Scroll the table sideways to see every column.

Has pay kept up with private rents?

Since 2015, a week’s pay buys 4% more private rent

How much private rent a week’s average pay buys, index 2015 = 100, compared with all prices, Great Britain pay and UK rents, 2015 to 2025.

Pay: Great Britain. Rents: United Kingdom · 2015 to 2025, calendar-year averages

1996–2026 displayed window · observations only. Shading marks years outside the displayed record.

What a week’s pay buys (2015 = 100)No observations shown90100110120axis does not start at 02000201020202015 = 100All prices 109Private rent 104
Average pay rose 51.0% from 2015 to 2025 and private rents 45.4%, so a week’s pay buys 3.9% more rent than in 2015 — against 9.3% more of everything. The average UK private rent was £925 a month in 2015 and £1,345 in 2025. This is a UK average across new and existing tenancies; it does not show what a new tenant in a particular area faces.

Pay: Great Britain. Rents: United Kingdom · 2015 to 2025, calendar-year averages · UK Facts calculation; PIPR is an official statistic in development

Sources, definitions and data — Since 2015, a week’s pay buys 4% more private rent
Geography:
Pay: Great Britain. Rents: United Kingdom — Private tenancies, new and existing
Measure:
Index of what a week’s pay buys, 2015 = 100
Period:
2015 to 2025, calendar-year averages
Status:
UK Facts calculation; PIPR is an official statistic in development
Calculation:
UK Facts calculation: (pay ÷ pay in 2015) ÷ (PIPR index ÷ PIPR in 2015) × 100. Pay is ONS KAB9; the PIPR is the mean of its 12 monthly UK values.
Compare with:
2015 = 100, and the official real-pay measure over the same years
Not included / breaks:
The rent line starts in 2015, the first full year of ONS’s Price Index of Private Rents. Before that, ONS measured private rents for CPI with a method it later replaced, partly because it understated rent growth, so there is no consistent official private-rents series back to 2000.

Source: ONS, Price Index of Private Rents, UK: monthly price statistics, Table 1, United Kingdom (released 16 September 2026). Chart ECON-06b.

View the data as a table
YearPay (£ a week, cash)Average private rent (£ a month)Rent index (2015 = 100)What a week’s pay buys: rentAll prices
2015482925100.0100.0100.0
2016494956103.399.2101.4
2017505979105.899.0101.2
2018520988106.8101.0101.9
20195381007108.8102.5103.5
20205471025110.8102.5104.3
20215801039112.3107.1107.7
20226161084117.1109.1106.0
20236591164125.8108.7106.4
20246941265136.8105.3108.5
20257281345145.4103.9109.3

Scroll the table sideways to see every column.

Does counting mortgage interest change the picture?

Measured by ONS’s Household Costs Indices, real pay has risen 3.3% since 2005, against 9.7% on CPIH

Change in average weekly pay from 2005 to 2025 after adjusting for prices, using CPIH and, for each household group, its Household Costs Index (HCI), UK prices, Great Britain pay.

Pay: Great Britain. Prices: United Kingdom · 2005 to 2025, calendar-year averages
  • All prices (CPIH, the official deflator)+9.7%
  • All households+3.3%
  • Lowest-income tenth−0.8%
  • Highest-income tenth+5.3%
  • Private renters+7.5%
  • Social renters−1.6%

The gap between CPIH and the all-households Household Costs Index is 6.4 percentage points over 20 years.

On ONS’s Household Costs Index for all households, average pay bought 3.3% more in 2025 than in 2005; on CPIH, 9.7%. The difference, 6.4 points, is smaller than the gaps for single bills: the HCIs still cover everything households buy, not only essentials. For the lowest-income tenth the figure is −0.8%. From 2008, mortgagors’ costs give +3.5% against +4.8% on CPIH.

Pay: Great Britain. Prices: United Kingdom · 2005 to 2025, calendar-year averages · UK Facts calculation; the HCIs are official statistics in development and may be revised

Sources, definitions and data — Measured by ONS’s Household Costs Indices, real pay has risen 3.3% since 2005, against 9.7% on CPIH
Geography:
Pay: Great Britain. Prices: United Kingdom — Every bar uses the same average pay — the groups differ only in the prices they face
Measure:
% change in real pay, 2005 to 2025
Period:
2005 to 2025, calendar-year averages
Status:
UK Facts calculation; the HCIs are official statistics in development and may be revised
Calculation:
UK Facts calculation: (KAB9 pay in 2025 ÷ pay in 2005) ÷ (index in 2025 ÷ index in 2005) − 1. CPIH is ONS L522; each HCI is the mean of its 12 monthly values. Computed from cash pay and annual index averages, the CPIH figure can differ by a few tenths from ONS’s own real-pay series (A3WX).
Compare with:
CPIH, the index ONS uses for its headline real-pay figures
Not included / breaks:
The HCIs include mortgage interest and weight every household equally, where CPIH prices owner-occupied housing by rental equivalence and weights by spending. ONS advises caution with 2005–2007. Owner-occupier HCIs start in 2007, so mortgagors and outright owners are compared from 2008 in the table only. This is not the pay of each group: the same average pay is deflated each time.

Source: ONS, Household Costs Indices for UK household groups: April to June 2026, reference tables, Tables 4, 9 and 24 (all-items index, 2015 = 100) (released 28 August 2026). Chart ECON-07.

View the data as a table
Prices usedFromIndex, startIndex, 2025Real pay change (%)Same years on CPIH (%)
CPIH (all items, L522)200579.4138.09.79.7
All households (HCI)200577.4142.93.39.7
Lowest-income tenth (HCI)200574.8143.8-0.89.7
Highest-income tenth (HCI)200579.8144.45.39.7
Private renters (HCI)200579.1140.27.59.7
Social renters (HCI)200573.0141.4-1.69.7
Mortgagors (HCI)200890.0145.93.54.8
Outright owners (HCI)200884.2142.3-0.84.8

Scroll the table sideways to see every column.

Does a growing economy mean growing incomes?

Growth in the economy does not guarantee growth in income per person

Top: real GDP per head. Bottom: real household disposable income per head. Both UK, calendar years, indexed so 2019 = 100, 1996 to the latest full year.

United Kingdom · 1996 to 2025 (GDP per head); 1996 to 2025 (income per head)

Real GDP per head (+1.0% on 2019)

1996–2026 displayed window · observations only. Shading marks years outside the displayed record.

Index, 2019 = 100708090100110axis does not start at 02000201020202019 = 100101.0

Real household disposable income per head (+0.8% on 2019)

1996–2026 displayed window · observations only. Shading marks years outside the displayed record.

Index, 2019 = 100708090100110axis does not start at 02000201020202019 = 100100.8
The two measures usually move together but can part company: GDP per head counts everything produced, including profits and depreciation, while household income adds benefits and subtracts taxes. Since 2007 income per head has grown 14.1% and GDP per head 9.4%. Since 2019 both are almost flat (+1.0% and +0.8%). Neither is output per hour worked, a different productivity measure.

United Kingdom · 1996 to 2025 (GDP per head); 1996 to 2025 (income per head) · Official statistics, revised at each national accounts release

Sources, definitions and data — Growth in the economy does not guarantee growth in income per person
Geography:
United Kingdom — Whole population (per head)
Measure:
Index, 2019 = 100
Period:
1996 to 2025 (GDP per head); 1996 to 2025 (income per head)
Status:
Official statistics, revised at each national accounts release
Calculation:
GDP per head: the four quarters of IHXW summed for each complete year, then divided by 2019. Income per head: CRXW annual, divided by 2019. Both chained volume measures from the 30 September 2026 national accounts (reference year 2024).
Compare with:
2019, the last year before the pandemic
Not included / breaks:
Household income per head includes income households never see as cash (such as the rent owner-occupiers notionally pay themselves) and non-profit institutions. Both are averages and say nothing about distribution.

Source: ONS, Gross domestic product per head, chained volume measure (Quarterly National Accounts), series IHXW (released 30 September 2026). Chart ECON-02.

View the data as a table
YearGDP per head (2019 = 100)Household income per head (2019 = 100)
199670.368.2
199773.569.6
199875.770.0
199977.672.6
200080.976.3
200182.578.7
200283.580.0
200385.881.3
200487.383.0
200589.184.5
200690.485.4
200792.388.3
200891.687.3
200986.988.0
201088.388.1
201188.585.7
201289.387.7
201390.489.0
201492.690.9
201594.096.1
201695.396.0
201798.096.6
201899.198.2
2019100.0100.0
202089.899.7
202196.9100.8
2022100.797.1
202399.997.0
2024100.299.9
2025101.0100.8

Who feels this most?

Who has gained since 2000?

After housing costs, the lowest fifth's typical income rose 36% since 2000–01; the highest fifth's 23%

Median weekly household income within each fifth of the income distribution, after housing costs, equivalised, £ a week at 2024/25 prices, UK: 2024–25 (filled dot) and 2000–01 (open dot). 2007–08 is in the table.

United Kingdom · 2000–01, 2007–08 and 2024–25 (financial years)
2024–252000–01
  • Highest fifth£1,238
  • Fourth fifth£816
  • Middle fifth (overall median)£623
  • Second fifth£463
  • Lowest fifth£273
Gains since 2000–01 have been largest in percentage terms at the bottom: the lowest fifth's median rose 35.9%, the middle 33.0% and the top fifth 23.2% (since 2007–08: 23.2%, 14.8% and 7.0%). In pounds the gap is still wide — £273 against £1,238 a week. Part of the latest year's rise is within sampling error, and the 2021/22 break makes the comparison indicative rather than exact.

United Kingdom · 2000–01, 2007–08 and 2024–25 (financial years) · Accredited official statistics (survey estimates with sampling error)

Sources, definitions and data — After housing costs, the lowest fifth's typical income rose 36% since 2000–01; the highest fifth's 23%
Geography:
United Kingdom — People in private households
Measure:
£ a week, 2024/25 prices, equivalised for household size
Period:
2000–01, 2007–08 and 2024–25 (financial years)
Status:
Accredited official statistics (survey estimates with sampling error)
Calculation:
As published (Table 1.2b). Percentage changes are site calculations.
Compare with:
2000–01, the same starting point as the pay chart; 2007–08, the year the financial crisis began, in the table
Not included / breaks:
There is a series break in 2021/22, when benefit income began to be linked to administrative records; DWP advises caution comparing across it. Excludes people not in private households.

Source: DWP, Households Below Average Income: financial years ending 1995 to 2025, summary Table 1.2b (quintile medians, 2024/25 prices) (released 26 March 2026). Chart ECON-03.

View the data as a table
Income fifth2000–01 (£/wk)2007–08 (£/wk)2024–25 (£/wk)Change since 2000–01 (%)Change since 2007–08 (%)
Lowest fifth£201£221£27335.923.2
Second fifth£328£382£46341.121.1
Middle fifth (overall median)£468£543£62333.014.8
Fourth fifth£642£739£81627.210.5
Highest fifth£1,005£1,157£1,23823.27.0

Scroll the table sideways to see every column.

Local figures use different measures: how do pay and jobs compare across Hampshire’s council areas?

Shareable visual summary

Visual summary

Image current

Every figure printed in the image matches today’s record, and its primary sources have been checked.

Average pay buys just 5% more than before the financial crash.

Mean weekly total pay including bonuses, after inflation (CPIH), Great Britain, 2015 prices: £505 in 2007 and £528 in 2025, +4.6%. Over the longer run, £427 in 2000 (+23.7% to 2025). CPIH leaves out mortgage payments; a mean, pulled up by high earners.

  • £5052007 (before the financial crash), a week
  • £5282025, a week (2015 prices)
  • +4.6%change since 2007
  • £4272000, a week (2015 prices)
  • +23.7%change since 2000
Great Britain, mean real weekly total pay. Source: ONS, Average Weekly Earnings (A3WX).
Download image (PNG, 1024 by 1536 pixels)

Average pay buys just 5% more than before the financial crash.

Economy infographic: real average weekly pay was £505 in 2007 and £528 in 2025 (2015 prices), about 4.6% higher after 18 years.
Text and data version

Average pay buys just 5% more than before the financial crash. Mean weekly total pay including bonuses, after inflation (CPIH), Great Britain, 2015 prices: £505 in 2007 and £528 in 2025, +4.6%. Over the longer run, £427 in 2000 (+23.7% to 2025). CPIH leaves out mortgage payments; a mean, pulled up by high earners.

Records behind this visual summary
MeasureValuePeriodGeographyTypeSource
Real average weekly total pay, 2007 (2015 prices)£5052007Great Britainobserved countOffice for National Statistics, Average Weekly Earnings
Real average weekly total pay, 2025 (2015 prices)£5282025Great Britainobserved countOffice for National Statistics, Average Weekly Earnings
Change in real average weekly pay, 2007 to 2025Calculation: (2025 ÷ 2007 − 1) × 100+4.6%2007 to 2025Great Britainderived calculationOffice for National Statistics, Average Weekly Earnings
Real average weekly total pay, 2000 (2015 prices)£4272000Great Britainobserved countOffice for National Statistics, Average Weekly Earnings
Change in real average weekly pay, 2000 to 2025Calculation: (2025 ÷ 2000 − 1) × 100+23.7%2000 to 2025Great Britainderived calculationOffice for National Statistics, Average Weekly Earnings

Image description: Economy infographic: real average weekly pay was £505 in 2007 and £528 in 2025 (2015 prices), about 4.6% higher after 18 years.

All visual summaries, their source records and their publication state are listed on Shareable visuals.

Go deeper

  • What happened to pay?
    +23.7%2000–2025Great Britain · £ a week
    030060019962026
    427 → 5282000–2025
    Inflation-adjusted average weekly pay. Changes in workforce composition also affect the average.
    Sources and data

    Great Britain, not the UK — AWE does not cover Northern Ireland. An average across employees, so it is pulled up by high earners and says nothing about how pay is distributed.

    Source dataset →
    Period£ a weekStatus
    2000427Outturn
    2001442Outturn
    2002449Outturn
    2003457Outturn
    2004471Outturn
    2005482Outturn
    2006493Outturn
    2007505Outturn
    2008505Outturn
    2009495Outturn
    2010494Outturn
    2011487Outturn
    2012481Outturn
    2013475Outturn
    2014473Outturn
    2015483Outturn
    2016490Outturn
    2017489Outturn
    2018492Outturn
    2019500Outturn
    2020504Outturn
    2021520Outturn
    2022512Outturn
    2023514Outturn
    2024524Outturn
    2025528Outturn
    The squeeze, the recovery, and what an average hides.Read the chapter → What happened to pay?
  • Why do prices still feel high?
    +111.8%Jan 1996–Aug 2026United Kingdom · index (2015=100)
    010020019962026
    67.8 → 143.6Jan 1996–Aug 2026
    Consumer price level, not the annual inflation rate. A slower rise in prices does not mean prices have fallen.
    Sources and data

    A price LEVEL: the ratio of two months gives the cumulative price change between them. Not seasonally adjusted.

    Source dataset →
    Periodindex (2015=100)Status
    Jan 199667.8Outturn
    Feb 199668.1Outturn
    Mar 199668.4Outturn
    Apr 199668.7Outturn
    May 199668.9Outturn
    Jun 199669Outturn
    Jul 199668.6Outturn
    Aug 199668.9Outturn
    Sep 199669.3Outturn
    Oct 199669.3Outturn
    Nov 199669.3Outturn
    Dec 199669.5Outturn
    Jan 199769.2Outturn
    Feb 199769.4Outturn
    Mar 199769.5Outturn
    Apr 199769.8Outturn
    May 199770Outturn
    Jun 199770.2Outturn
    Jul 199769.9Outturn
    Aug 199770.3Outturn
    Sep 199770.6Outturn
    Oct 199770.6Outturn
    Nov 199770.6Outturn
    Dec 199770.7Outturn
    Jan 199870.3Outturn
    Feb 199870.5Outturn
    Mar 199870.7Outturn
    Apr 199871.1Outturn
    May 199871.4Outturn
    Jun 199871.3Outturn
    Jul 199871Outturn
    Aug 199871.2Outturn
    Sep 199871.5Outturn
    Oct 199871.5Outturn
    Nov 199871.6Outturn
    Dec 199871.8Outturn
    Jan 199971.4Outturn
    Feb 199971.5Outturn
    Mar 199971.9Outturn
    Apr 199972.2Outturn
    May 199972.4Outturn
    Jun 199972.3Outturn
    Jul 199971.9Outturn
    Aug 199972.1Outturn
    Sep 199972.4Outturn
    Oct 199972.3Outturn
    Nov 199972.4Outturn
    Dec 199972.6Outturn
    Jan 200071.9Outturn
    Feb 200072.2Outturn
    Mar 200072.3Outturn
    Apr 200072.6Outturn
    May 200072.8Outturn
    Jun 200072.9Outturn
    Jul 200072.5Outturn
    Aug 200072.5Outturn
    Sep 200073.1Outturn
    Oct 200073.1Outturn
    Nov 200073.2Outturn
    Dec 200073.2Outturn
    Jan 200172.6Outturn
    Feb 200172.7Outturn
    Mar 200173Outturn
    Apr 200173.4Outturn
    May 200174Outturn
    Jun 200174.1Outturn
    Jul 200173.6Outturn
    Aug 200173.9Outturn
    Sep 200174.1Outturn
    Oct 200173.9Outturn
    Nov 200173.8Outturn
    Dec 200174Outturn
    Jan 200273.7Outturn
    Feb 200273.8Outturn
    Mar 200274.1Outturn
    Apr 200274.4Outturn
    May 200274.6Outturn
    Jun 200274.6Outturn
    Jul 200274.4Outturn
    Aug 200274.6Outturn
    Sep 200274.8Outturn
    Oct 200274.9Outturn
    Nov 200274.9Outturn
    Dec 200275.2Outturn
    Jan 200374.7Outturn
    Feb 200375Outturn
    Mar 200375.3Outturn
    Apr 200375.5Outturn
    May 200375.5Outturn
    Jun 200375.4Outturn
    Jul 200375.3Outturn
    Aug 200375.6Outturn
    Sep 200375.9Outturn
    Oct 200376Outturn
    Nov 200375.9Outturn
    Dec 200376.2Outturn
    Jan 200475.8Outturn
    Feb 200476Outturn
    Mar 200476.1Outturn
    Apr 200476.4Outturn
    May 200476.6Outturn
    Jun 200476.6Outturn
    Jul 200476.4Outturn
    Aug 200476.6Outturn
    Sep 200476.7Outturn
    Oct 200476.9Outturn
    Nov 200477Outturn
    Dec 200477.4Outturn
    Jan 200577Outturn
    Feb 200577.2Outturn
    Mar 200577.5Outturn
    Apr 200577.8Outturn
    May 200578.1Outturn
    Jun 200578.1Outturn
    Jul 200578.2Outturn
    Aug 200578.4Outturn
    Sep 200578.6Outturn
    Oct 200578.7Outturn
    Nov 200578.7Outturn
    Dec 200578.9Outturn
    Jan 200678.5Outturn
    Feb 200678.8Outturn
    Mar 200678.9Outturn
    Apr 200679.4Outturn
    May 200679.9Outturn
    Jun 200680.1Outturn
    Jul 200680Outturn
    Aug 200680.4Outturn
    Sep 200680.5Outturn
    Oct 200680.6Outturn
    Nov 200680.8Outturn
    Dec 200681.3Outturn
    Jan 200780.6Outturn
    Feb 200781Outturn
    Mar 200781.4Outturn
    Apr 200781.6Outturn
    May 200781.8Outturn
    Jun 200782Outturn
    Jul 200781.5Outturn
    Aug 200781.8Outturn
    Sep 200781.9Outturn
    Oct 200782.3Outturn
    Nov 200782.5Outturn
    Dec 200783Outturn
    Jan 200882.4Outturn
    Feb 200883Outturn
    Mar 200883.4Outturn
    Apr 200884Outturn
    May 200884.6Outturn
    Jun 200885.2Outturn
    Jul 200885.1Outturn
    Aug 200885.7Outturn
    Sep 200886.1Outturn
    Oct 200885.9Outturn
    Nov 200885.8Outturn
    Dec 200885.5Outturn
    Jan 200984.9Outturn
    Feb 200985.6Outturn
    Mar 200985.8Outturn
    Apr 200986Outturn
    May 200986.4Outturn
    Jun 200986.7Outturn
    Jul 200986.7Outturn
    Aug 200987Outturn
    Sep 200987.1Outturn
    Oct 200987.2Outturn
    Nov 200987.5Outturn
    Dec 200988Outturn
    Jan 201087.8Outturn
    Feb 201088.2Outturn
    Mar 201088.7Outturn
    Apr 201089.2Outturn
    May 201089.4Outturn
    Jun 201089.5Outturn
    Jul 201089.3Outturn
    Aug 201089.8Outturn
    Sep 201089.8Outturn
    Oct 201090Outturn
    Nov 201090.3Outturn
    Dec 201091.2Outturn
    Jan 201191.3Outturn
    Feb 201192Outturn
    Mar 201192.2Outturn
    Apr 201193.2Outturn
    May 201193.4Outturn
    Jun 201193.3Outturn
    Jul 201193.3Outturn
    Aug 201193.8Outturn
    Sep 201194.4Outturn
    Oct 201194.5Outturn
    Nov 201194.6Outturn
    Dec 201195.1Outturn
    Jan 201294.6Outturn
    Feb 201295.1Outturn
    Mar 201295.4Outturn
    Apr 201296Outturn
    May 201295.9Outturn
    Jun 201295.5Outturn
    Jul 201295.6Outturn
    Aug 201296.1Outturn
    Sep 201296.5Outturn
    Oct 201297Outturn
    Nov 201297.2Outturn
    Dec 201297.6Outturn
    Jan 201397.1Outturn
    Feb 201397.8Outturn
    Mar 201398.1Outturn
    Apr 201398.3Outturn
    May 201398.5Outturn
    Jun 201398.3Outturn
    Jul 201398.3Outturn
    Aug 201398.7Outturn
    Sep 201399.1Outturn
    Oct 201399.1Outturn
    Nov 201399.2Outturn
    Dec 201399.6Outturn
    Jan 201499Outturn
    Feb 201499.5Outturn
    Mar 201499.7Outturn
    Apr 2014100.1Outturn
    May 2014100Outturn
    Jun 2014100.2Outturn
    Jul 201499.9Outturn
    Aug 2014100.2Outturn
    Sep 2014100.3Outturn
    Oct 2014100.4Outturn
    Nov 2014100.1Outturn
    Dec 2014100.1Outturn
    Jan 201599.3Outturn
    Feb 201599.5Outturn
    Mar 201599.7Outturn
    Apr 201599.9Outturn
    May 2015100.1Outturn
    Jun 2015100.2Outturn
    Jul 2015100Outturn
    Aug 2015100.3Outturn
    Sep 2015100.2Outturn
    Oct 2015100.3Outturn
    Nov 2015100.3Outturn
    Dec 2015100.3Outturn
    Jan 201699.5Outturn
    Feb 201699.8Outturn
    Mar 2016100.2Outturn
    Apr 2016100.2Outturn
    May 2016100.4Outturn
    Jun 2016100.6Outturn
    Jul 2016100.6Outturn
    Aug 2016100.9Outturn
    Sep 2016101.1Outturn
    Oct 2016101.2Outturn
    Nov 2016101.4Outturn
    Dec 2016101.9Outturn
    Jan 2017101.4Outturn
    Feb 2017102.1Outturn
    Mar 2017102.5Outturn
    Apr 2017102.9Outturn
    May 2017103.3Outturn
    Jun 2017103.3Outturn
    Jul 2017103.2Outturn
    Aug 2017103.8Outturn
    Sep 2017104.1Outturn
    Oct 2017104.2Outturn
    Nov 2017104.6Outturn
    Dec 2017104.9Outturn
    Jan 2018104.4Outturn
    Feb 2018104.9Outturn
    Mar 2018105Outturn
    Apr 2018105.4Outturn
    May 2018105.8Outturn
    Jun 2018105.8Outturn
    Jul 2018105.8Outturn
    Aug 2018106.5Outturn
    Sep 2018106.6Outturn
    Oct 2018106.7Outturn
    Nov 2018107Outturn
    Dec 2018107.1Outturn
    Jan 2019106.3Outturn
    Feb 2019106.8Outturn
    Mar 2019107Outturn
    Apr 2019107.6Outturn
    May 2019107.9Outturn
    Jun 2019107.9Outturn
    Jul 2019107.9Outturn
    Aug 2019108.4Outturn
    Sep 2019108.5Outturn
    Oct 2019108.3Outturn
    Nov 2019108.5Outturn
    Dec 2019108.5Outturn
    Jan 2020108.2Outturn
    Feb 2020108.6Outturn
    Mar 2020108.6Outturn
    Apr 2020108.5Outturn
    May 2020108.5Outturn
    Jun 2020108.6Outturn
    Jul 2020109.1Outturn
    Aug 2020108.6Outturn
    Sep 2020109.1Outturn
    Oct 2020109.1Outturn
    Nov 2020108.9Outturn
    Dec 2020109.2Outturn
    Jan 2021109Outturn
    Feb 2021109.1Outturn
    Mar 2021109.4Outturn
    Apr 2021110.1Outturn
    May 2021110.8Outturn
    Jun 2021111.3Outturn
    Jul 2021111.3Outturn
    Aug 2021112.1Outturn
    Sep 2021112.4Outturn
    Oct 2021113.6Outturn
    Nov 2021114.5Outturn
    Dec 2021115.1Outturn
    Jan 2022114.9Outturn
    Feb 2022115.8Outturn
    Mar 2022117.1Outturn
    Apr 2022120Outturn
    May 2022120.8Outturn
    Jun 2022121.8Outturn
    Jul 2022122.5Outturn
    Aug 2022123.1Outturn
    Sep 2022123.8Outturn
    Oct 2022126.2Outturn
    Nov 2022126.7Outturn
    Dec 2022127.2Outturn
    Jan 2023126.4Outturn
    Feb 2023127.9Outturn
    Mar 2023128.9Outturn
    Apr 2023130.4Outturn
    May 2023131.3Outturn
    Jun 2023131.5Outturn
    Jul 2023130.9Outturn
    Aug 2023131.3Outturn
    Sep 2023132Outturn
    Oct 2023132Outturn
    Nov 2023131.7Outturn
    Dec 2023132.2Outturn
    Jan 2024131.5Outturn
    Feb 2024132.3Outturn
    Mar 2024133Outturn
    Apr 2024133.5Outturn
    May 2024133.9Outturn
    Jun 2024134.1Outturn
    Jul 2024133.8Outturn
    Aug 2024134.3Outturn
    Sep 2024134.2Outturn
    Oct 2024135Outturn
    Nov 2024135.1Outturn
    Dec 2024135.6Outturn
    Jan 2025135.4Outturn
    Feb 2025136Outturn
    Mar 2025136.5Outturn
    Apr 2025138.2Outturn
    May 2025138.4Outturn
    Jun 2025138.9Outturn
    Jul 2025139Outturn
    Aug 2025139.3Outturn
    Sep 2025139.3Outturn
    Oct 2025139.8Outturn
    Nov 2025139.5Outturn
    Dec 2025140.1Outturn
    Jan 2026139.5Outturn
    Feb 2026140.1Outturn
    Mar 2026141Outturn
    Apr 2026142.1Outturn
    May 2026142.4Outturn
    Jun 2026142.5Outturn
    Jul 2026142.9Outturn
    Aug 2026143.6Outturn
    Speed versus level, and who was hit hardest.Read the chapter → Why do prices still feel high?
  • What do households have left?
    +47.7%1996–2025United Kingdom · £ per person
    015K30K19962026
    17,766 → 26,2411996–2025
    Inflation-adjusted income per person after taxes and benefits; not the income of a typical household.
    Sources and data

    The national-accounts measure of living standards: an average per person, so it says nothing about how income is shared, and it includes income households never see as cash (such as imputed rent for owner-occupiers). Each Blue Book re-references chained volume measures, so levels are only comparable within one vintage.

    Source dataset →
    Period£ per personStatus
    199617,766Outturn
    199718,111Outturn
    199818,215Outturn
    199918,894Outturn
    200019,863Outturn
    200120,482Outturn
    200220,819Outturn
    200321,172Outturn
    200421,619Outturn
    200522,006Outturn
    200622,241Outturn
    200722,999Outturn
    200822,732Outturn
    200922,920Outturn
    201022,931Outturn
    201122,321Outturn
    201222,841Outturn
    201323,169Outturn
    201423,673Outturn
    201525,023Outturn
    201624,983Outturn
    201725,136Outturn
    201825,573Outturn
    201926,032Outturn
    202025,958Outturn
    202126,249Outturn
    202225,269Outturn
    202325,244Outturn
    202426,011Outturn
    202526,241Outturn
    Household income, before and after housing costs.Read the chapter → What do households have left?
  • Why did growth slow?
    +46.7%1996 Q1–2026 Q2United Kingdom · £
    07,50015K19962026
    7,287 → 10,6921996 Q1–2026 Q2
    Real GDP per person. A measure of output, not how evenly income is shared.
    Sources and data

    The single most-cited "how rich is Britain per person, adjusted for inflation" figure. Divides real GDP by mid-year population estimates. Quarterly figures are per-quarter, not annualised; the 50 Years of Britain page shows a Q4 (or latest available) reading per year for a consistent annual comparison. The Quarterly National Accounts of 30 September 2026 (consistent with Blue Book 2026) moved chained volume measures to a 2024 reference year (CVM equals current prices in 2024); earlier vintages used 2023 or earlier reference years, so absolute levels are not comparable release-to-release, only within one vintage — the growth rates and ratios shown here are unaffected.

    Source dataset →
    Period£Status
    1996 Q17,287Outturn
    1996 Q27,306Outturn
    1996 Q37,368Outturn
    1996 Q47,466Outturn
    1997 Q17,578Outturn
    1997 Q27,658Outturn
    1997 Q37,718Outturn
    1997 Q47,833Outturn
    1998 Q17,880Outturn
    1998 Q27,920Outturn
    1998 Q37,926Outturn
    1998 Q47,971Outturn
    1999 Q18,016Outturn
    1999 Q28,038Outturn
    1999 Q38,165Outturn
    1999 Q48,286Outturn
    2000 Q18,389Outturn
    2000 Q28,451Outturn
    2000 Q38,492Outturn
    2000 Q48,533Outturn
    2001 Q18,590Outturn
    2001 Q28,619Outturn
    2001 Q38,656Outturn
    2001 Q48,676Outturn
    2002 Q18,689Outturn
    2002 Q28,721Outturn
    2002 Q38,762Outturn
    2002 Q48,809Outturn
    2003 Q18,873Outturn
    2003 Q28,946Outturn
    2003 Q39,025Outturn
    2003 Q49,086Outturn
    2004 Q19,106Outturn
    2004 Q29,135Outturn
    2004 Q39,151Outturn
    2004 Q49,175Outturn
    2005 Q19,226Outturn
    2005 Q29,284Outturn
    2005 Q39,354Outturn
    2005 Q49,430Outturn
    2006 Q19,451Outturn
    2006 Q29,459Outturn
    2006 Q39,461Outturn
    2006 Q49,477Outturn
    2007 Q19,566Outturn
    2007 Q29,635Outturn
    2007 Q39,704Outturn
    2007 Q49,766Outturn
    2008 Q19,781Outturn
    2008 Q29,716Outturn
    2008 Q39,549Outturn
    2008 Q49,328Outturn
    2009 Q19,124Outturn
    2009 Q29,083Outturn
    2009 Q39,078Outturn
    2009 Q49,088Outturn
    2010 Q19,155Outturn
    2010 Q29,247Outturn
    2010 Q39,286Outturn
    2010 Q49,279Outturn
    2011 Q19,274Outturn
    2011 Q29,261Outturn
    2011 Q39,266Outturn
    2011 Q49,257Outturn
    2012 Q19,340Outturn
    2012 Q29,318Outturn
    2012 Q39,391Outturn
    2012 Q49,366Outturn
    2013 Q19,388Outturn
    2013 Q29,441Outturn
    2013 Q39,496Outturn
    2013 Q49,547Outturn
    2014 Q19,608Outturn
    2014 Q29,674Outturn
    2014 Q39,732Outturn
    2014 Q49,781Outturn
    2015 Q19,790Outturn
    2015 Q29,825Outturn
    2015 Q39,849Outturn
    2015 Q49,884Outturn
    2016 Q19,917Outturn
    2016 Q29,971Outturn
    2016 Q39,993Outturn
    2016 Q410,041Outturn
    2017 Q110,142Outturn
    2017 Q210,226Outturn
    2017 Q310,289Outturn
    2017 Q410,362Outturn
    2018 Q110,356Outturn
    2018 Q210,361Outturn
    2018 Q310,384Outturn
    2018 Q410,385Outturn
    2019 Q110,428Outturn
    2019 Q210,438Outturn
    2019 Q310,498Outturn
    2019 Q410,511Outturn
    2020 Q110,209Outturn
    2020 Q28,171Outturn
    2020 Q39,541Outturn
    2020 Q49,662Outturn
    2021 Q19,551Outturn
    2021 Q210,209Outturn
    2021 Q310,356Outturn
    2021 Q410,473Outturn
    2022 Q110,536Outturn
    2022 Q210,567Outturn
    2022 Q310,542Outturn
    2022 Q410,538Outturn
    2023 Q110,518Outturn
    2023 Q210,488Outturn
    2023 Q310,446Outturn
    2023 Q410,394Outturn
    2024 Q110,445Outturn
    2024 Q210,484Outturn
    2024 Q310,493Outturn
    2024 Q410,522Outturn
    2025 Q110,577Outturn
    2025 Q210,568Outturn
    2025 Q310,582Outturn
    2025 Q410,578Outturn
    2026 Q110,641Outturn
    2026 Q210,692Outturn
    Investment, skills, energy and planning as constraints on growth.Read the chapter → Why did growth slow?

Evidence → choices → outcomes

What could improve it?

Sustained gains in real pay and household living standards across the UK, including for lower-income households.

These options link to their national assessment, including funding, delivery constraints and remaining uncertainties.

  • Assessed option · provisional

    Offer evidence-based employment support alongside healthcare

    Fidelity reviews, NHS integration and an impact evaluation inside Connect to Work.

    9/10 criteria scored

    Coverage of the appraisal, not an impact score.

    Delivery: Amber

    Whole-life costs incomplete

    Evidence and delivery constraints

    Trials exist, but effects differ by setting; pooled out-of-work groups showed no employment impact. Do not infer a uniform national growth effect.

    Specify cohort and voluntary offer; secure clinical referrals, trained employment specialists, employer links and linked-data evaluation.

  • Assessed option · provisional

    Turn investment promises into a deliverable pipeline

    Approved-versus-aspirational status, milestones and completed assets in the infrastructure pipeline.

    8/10 criteria scored

    Coverage of the appraisal, not an impact score.

    Delivery: Amber

    Whole-life costs incomplete

    Evidence and delivery constraints

    Macro modelling and delivery audits support the rationale; they do not evaluate the incremental publication or coordination change.

    Distinguish funded projects from aspirations; sequence resources; name owners and independent assurance; protect maintenance.

  • Assessed option · provisional

    Turn housing permissions into completed homes

    8/10 criteria scored

    Coverage of the appraisal, not an impact score.

    Delivery: Red

    Whole-life costs incomplete

    Evidence and delivery constraints

    Housing constraints and modelled supply responses support the case; no evaluated national effect for this exact site-unblocking package.

    Select sites; resolve land, planning, utilities, transport and viability; commission tenure mix and delivery agreements.

  • Assessed option · provisional

    Make childcare places work for working parents

    Test additional capacity, affordability and parental employment.

    8/10 criteria scored

    Coverage of the appraisal, not an impact score.

    Delivery: Amber

    Whole-life costs incomplete

    Evidence and delivery constraints

    IFS finds employment effects depend on the hours offered. This is indirect evidence for filling today’s local supply gaps. A September 2026 process evaluation exists; it is not a causal national impact estimate.

    Verify unmet demand, existing awards and provider viability; cost places, workforce, premises, operating subsidy and parental fees. Track access and sustained parental work. Proposed owners: councils, DfE and providers in England; separate devolved arrangements.

This domain in the UK SWOT →UK National Action Plan →

How we assessed these options

What would it take to improve this?

What would move the needle?

The outcome we want: Sustained gains in real pay and household living standards across the UK, including for lower-income households.

The main constraint: Living standards rise with output per hour, which depends on investment, homes where the jobs are and people healthy enough to work — each owned by different bodies (HM Treasury, MHCLG and councils, DWP and the NHS) and each slow to change; no single spending total guarantees a pay rise.

Constraint type: infrastructure, workforce, permissions, money.

The options on the table

What is funded now, and the changes assessed against it — the current baseline and the alternatives, before the position today and the actions.

Provisional single-reviewer assessments from the 6 October 2026 review; not approved business cases, and not government policy.

Assessed with another page as home

These options also bear on this topic. The full assessment sits on the home page named under each.

  • Health-linked work supportDelivery RAG: Amber

    Home: Jobs & pay.

    Funded now
    Connect to Work has taken referrals since April 2025 and aims to support about 300,000 people by 2029/30; IPS also operates in NHS mental health services. The proposal here is to hold it to fidelity and integrate it with care, not to start something new.
    The change assessed
    Fidelity reviews, NHS integration and an impact evaluation inside Connect to Work.

    Range if completed: 17.0–20.0 out of 30 (equal weights; not yet assessed: incremental affordability (Co))

  • Steady public investment through a published pipelineDelivery RAG: Amber

    Home: Growth & productivity.

    Funded now
    Already government policy: the 10 Year Infrastructure Strategy (June 2025) commits at least £725bn over a decade and launched an online Infrastructure Pipeline in July 2025, updated at least every six months. UK Facts’ addition is to separate approved from aspirational projects on the page and to count completed, used assets rather than announcements.
    The change assessed
    Approved-versus-aspirational status, milestones and completed assets in the infrastructure pipeline.

    Range if completed: 15.0–21.0 out of 30 (equal weights; not yet assessed: expected incremental benefit (Bn), incremental affordability (Co))

  • Homes built, not just permittedDelivery RAG: Red

    Home: Housing.

    Funded now
    Not yet stated in the record.
    The change assessed
    Not yet defined.

    Range if completed: 14.0–20.0 out of 30 (equal weights; not yet assessed: expected incremental benefit (Bn), incremental affordability (Co))

  • Childcare places that parents can actually useDelivery RAG: Amber

    Home: Education.

    Funded now
    Funded baseline (England): 30 hours a week for 38 weeks for working parents of children from 9 months (since September 2025), the universal 15 hours for 3–4-year-olds, and 15 hours for disadvantaged 2-year-olds, with £9.5bn for early years in 2026–27; school-based nursery and capital grants add places. Commissioning extra places only where a local gap is shown is a UK Facts proposal, not government policy.
    The change assessed
    Commission specified additional places/hours in demonstrated local supply gaps beyond the funded baseline; adult-carer support remains a separate option.

    Range if completed: 16.0–22.0 out of 30 (equal weights; not yet assessed: expected incremental benefit (Bn), incremental affordability (Co))

Alternatives already on record: 28 options listed under the points in the position today (18 without an action record), and 4 earlier options under other options compared. They have not been scored in the review.

The position today

  • What we can build on (2)
  • What is holding us back (3)Average real weekly pay in 2025 was 4.6% above 2007, 18 years on — after rising 18.3% from 2000 to 2007. (2000–2025 (annual averages) · Great Britain)
  • What could improve things (2)Living standards could rise faster if investment, homes where the jobs are and support into suitable work move together, rather than relying on one headline growth target.
  • What could make it worse (3)

Which quadrant a point sits in is our analytical judgement, not a statistical category. Each point says whether it is a measured fact, our synthesis or a risk.

What we can build on Strengths

  • The UK is the world’s second-largest exporter of services and has a strong university research base — assets the Resolution Foundation and LSE’s Economy 2030 Inquiry says a growth strategy should build on.

    Measured factConfidence: Moderate· Data to 2023 (report published December 2023)· United Kingdom

    Source: Resolution Foundation / LSE Centre for Economic Performance, Ending Stagnation: A New Economic Strategy for Britain (Final report PDF p.30, printed p.29 (“10 key steps”, step 1); PDF p.39)

    What government has committed to

    Policy: The government's Modern Industrial Strategy backs eight growth sectors (including advanced manufacturing) as its main route to growth; a year-one delivery update was published in July 2026.

    Who and when:
    Starmer government (to July 2026), 8 July 2026.
    Since 20 July 2026:
    Kept by the Burnham government. Re-stated under Burnham: on 7 September 2026 Chancellor Healey called advanced manufacturing 'one of our eight Industrial Strategy growth sectors' and said 'Our science and research base is world-beating'. On 24 July 2026 the PM told business groups Britain is 'a global powerhouse in science, technology, manufacturing and innovation'. No document found that sets a services-export goal as such. Source: HM Treasury, Chancellor John Healey’s Growth Speech 2026 (7 September 2026) (Section on fiscal rules ('in lockstep in our commitment to meeting the fiscal rules'); 'Investment' section (Green Book discount rate 3.5% to 3%); 'eight Industrial Strategy growth sectors').

    Checked 4 October 2026. A commitment is not delivery.

    Options (3)
    • Back UK scale-ups with pension capital through the proposed UK Scale-up Fund

      More domestic long-term capital for science and technology firms born from the UK research base keeps their growth (and exports) in the UK.

      Who: Pension providers' consortium, British Business Bank, HM Treasury · Evidence: Untested proposal · Status: Announced proposal

      Source: HM Treasury, UK pension giants join forces to unlock £1bn to back Britain’s innovators (27 July 2026) (Body (consortium 'exploring' a UK Scale-up Fund of over £1bn; British Business Bank intends to co-invest; PM and Chancellor quotes))

    • Use the state as an early first customer for high-growth innovators

      Government procurement demand helps firms scale and commercialise UK research, building on the research-base asset.

      Who: HM Treasury and Department for Business and Trade · Evidence: Untested proposal · Status: Announced proposal

      Source: HM Treasury, Chancellor takes axe to delays holding back growth (7 September 2026) (Opening bullets; 'More information' (parliamentary designation of infrastructure, fixed Challenge Window); 'state as an early first customer')

    • Build a growth strategy around services exports and the university research base

      Prioritise the sectors where the UK already has comparative advantage (tradable services, research) rather than spreading support thinly.

      Who: HM Treasury and Department for Business and Trade · Evidence: Expert or audit recommendation · Status: External proposal

      Source: Resolution Foundation / LSE Centre for Economic Performance, Ending Stagnation: A New Economic Strategy for Britain (Final report PDF p.30 (printed p.29, '10 key steps', step 1); PDF p.9 executive summary (domain locators S01))

  • Planning reforms are in force: the National Planning Policy Framework was revised in December 2024 and replaced by a new version on 17 August 2026, and the Planning and Infrastructure Act 2025 became law on 18 December 2025. What they add in homes or output has not yet been observed.

    Measured factConfidence: High· December 2024 to August 2026· England

    Source: legislation.gov.uk, Planning and Infrastructure Act 2025 (c. 34) (Introductory text); MHCLG, National Planning Policy Framework (Introduction (this version replaces the Framework revised in December 2024))

    Options assessed against this point: Homes built, not just permitted (Red delivery RAG)

    What government has committed to

    Legislation: The Planning and Infrastructure Act 2025 (Royal Assent 18 December 2025) reforms infrastructure consenting and town and country planning, alongside the Plan for Change milestone of building 1.5 million homes in England this Parliament.

    Who and when:
    Starmer government (to July 2026), 18 December 2025.
    Since 20 July 2026:
    Kept by the Burnham government. Acted on under Burnham: on 23 August 2026 the government said mayors would get 'call-in' powers over large applications and powers to grant up-front permission; on 7 September 2026 the Chancellor announced parliamentary designation of the most important infrastructure and a fixed legal 'Challenge Window'. The 1.5 million homes figure was not found re-stated in these releases. Source: Prime Minister's Office / MHCLG, Mayors given powers to green light developments (Body (call-in thresholds: >150 homes, >15,000 sq m, >30m buildings; up-front permission; Mayoral infrastructure levy; £1.3bn land and infrastructure fund allocation)).
    Source:
    legislation.gov.uk, Planning and Infrastructure Act 2025 (c. 34) (Introductory text (Royal Assent 18 December 2025))

    Checked 4 October 2026. A commitment is not delivery.

    Options (4)
    • ShortlistedTurn permissions into homes people can live in

      Publish the blocker, owner and infrastructure cost for priority sites so permissions turn into starts and occupied homes, which is what the OBR's 170,000-home estimate depends on.

      Who: MHCLG with local planning authorities, utilities and developers · Evidence: Modelled scenario · Status: Site-editorial action

      Source: Office for Budget Responsibility, Economic and fiscal outlook, March 2025 (Paragraph 3.37 (planning reforms could boost housebuilding by 170,000 over five years))

    • Give mayors call-in and up-front permission powers for large schemes

      Moves decisions on schemes over 150 homes or 15,000 sq m to mayors, aiming to speed consent where growth is constrained.

      Who: MHCLG and Mayoral Strategic Authorities · Evidence: Untested proposal · Status: Announced proposal

      Source: Prime Minister's Office / MHCLG, Mayors given powers to green light developments (Body (call-in thresholds: >150 homes, >15,000 sq m, >30m buildings; up-front permission; Mayoral infrastructure levy; £1.3bn land and infrastructure fund allocation))

    • Protect nationally important infrastructure from repeated legal challenge

      Parliament designates critical projects and a fixed Challenge Window brings challenges forward, cutting delay after consent.

      Who: HM Treasury, relevant Secretaries of State and Parliament · Evidence: Untested proposal · Status: Announced proposal

      Source: HM Treasury, Chancellor takes axe to delays holding back growth (7 September 2026) (Opening bullets; 'More information' (parliamentary designation of infrastructure, fixed Challenge Window); 'state as an early first customer')

    • Move towards plan-based zoning so permission follows the plan

      A rules-based zoning system gives certainty that compliant development is permitted, raising the number of sites that can start.

      Who: MHCLG and Parliament · Evidence: Expert or audit recommendation · Status: External proposal

      Source: Centre for Cities, A zoning system for England (Report (domain source S41))

What is holding us back Weaknesses

What could improve things Opportunities

What could make it worse Threats

  • Growth need not reach lower-income households: the Inquiry describes the UK’s mix of slow growth and high inequality as a “toxic combination” for low- and middle-income families.

    Risk, not a certaintyConfidence: Moderate

    Source: Resolution Foundation / LSE Centre for Economic Performance, Ending Stagnation: A New Economic Strategy for Britain (Final report PDF p.9, printed p.8 (executive summary); PDF p.29, printed p.28 (10 key facts))

    Options assessed against this point: Health-linked work support (Amber delivery RAG)

    What government has committed to

    Policy: The UK-wide Child Poverty Strategy 2025, 'Our Children, Our Future', is monitored against a 2024/25 baseline; the Burnham government frames growth as 'growth in every postcode', which is about places rather than income groups.

    Who and when:
    Starmer government (to July 2026), 9 July 2026.
    Since 20 July 2026:
    Kept by the Burnham government. The monitoring baseline report was first published 9 July 2026 and updated 5 August 2026. Healey (21 July 2026) cited the previous government 'reducing child poverty by 450,000'. No Burnham commitment that growth must be measured for lower-income households was found. Source: HM Treasury, Chancellor John Healey delivers speech to Treasury staff (21 July 2026) (Five priorities ('First, fiscal discipline... We will meet the fiscal rules'; 'growth in every postcode')).
    Source:
    Department for Work and Pensions / Cabinet Office, Our Children, Our Future: Tackling Child Poverty - Monitoring and Evaluation baseline report (Summary (first annual monitoring report of the UK-wide Child Poverty Strategy 2025; 2024/25 baseline))

    Checked 4 October 2026. A commitment is not delivery.

    Options (3)
  • Energy and food price shocks pass quickly into household costs: CPI inflation peaked at 11.1% in October 2022, and prices do not fall back when the rate does.

    Risk, not a certaintyConfidence: Moderate

    Source: Office for National Statistics, Consumer price inflation, UK: August 2026 (Series D7G7 (12-month rate)); Bank of England, How do higher interest rates help to lower inflation? (Section “Inflation was not caused by people spending too much”)

    What government has committed to

    Policy: A temporary zero rate of VAT on domestic electricity in Great Britain from 1 October 2026 to 31 March 2027, and the 5p fuel duty cut extended to the end of 2026, presented as 'breathing space' during the Middle East energy shock.

    Who and when:
    Burnham government (from 20 July 2026), 21 July 2026.
    Since 20 July 2026:
    Made by the current government. In force from 1 October 2026; the Chancellor's 17 September letter to the Governor lists the VAT cut, the £2 bus fare cap and the fuel duty extension as government action on inflation.
    Source:
    HM Revenue & Customs, Temporary zero rate of VAT in Great Britain for domestic electricity (policy paper) (Policy objective / 'Detailed proposal' (1 Oct 2026 to 31 Mar 2027; rate stays 5% on all other domestic fuel); 'Exchequer impact' (final costing at a future fiscal event))

    Checked 4 October 2026. A commitment is not delivery.

    Options (3)
    • Cheaper, more reliable energy for homes and firms

      More domestic generation, grid and storage reduce exposure to imported gas so the next price shock passes less fully into bills and CPI.

      Who: DESNZ, Ofgem, NESO and network companies · Evidence: Modelled scenario · Status: Established · Works through Energy: More domestic generation, grid and storage reduce exposure to imported gas so the next price shock passes less fully into bills and CPI.

      Source: Office for National Statistics, CPI: electricity, gas and other fuels (series D7GT) (Series D7GT)

    • Capping household energy prices in a shock

      Government pays suppliers to hold unit rates below the cap, lowering measured inflation and bills during a spike.

      Who: DESNZ and HM Treasury; Ofgem · Evidence: Observational analysis · Status: External proposal · Works through Inflation: Government pays suppliers to hold unit rates below the cap, lowering measured inflation and bills during a spike.

      Source: Bank of England, Monetary Policy Summary and minutes, September 2022 (Monetary Policy Summary (Energy Price Guarantee and the inflation peak))

    • Fix cold and inefficient homes with quality-assured work

      Homes that need less energy are less exposed when gas prices spike.

      Who: DESNZ, councils and housing providers · Evidence: Observational analysis · Status: Funded programme · Works through Energy: Homes that need less energy are less exposed when gas prices spike.

      Source: Department for Energy Security and Net Zero, Warm Homes Plan (updated 18 March 2026) (Executive summary; 'Warm Homes Plan funding allocations (£ millions)' table (low-income homes grants 4,422); 'Support for low-income households'; 'Improving quality and consumer protection'; 'Making electricity cheaper')

  • UK exports depend on two markets whose trade rules the UK does not set: the United States took 21.8% of UK exports in 2025 and the EU 41.3%, so a tariff or regulatory change in either reaches a large share of UK sales abroad.

    Risk, not a certaintyConfidence: Moderate· 2025· United Kingdom

    Source: Department for Business and Trade, Trade and investment core statistics book (Section 2.1: UK exports to the EU and non-EU countries; Table 3a)

    What government has committed to

    Policy: General terms of the US–UK Economic Prosperity Deal: up to 100,000 UK cars a year at a 10% tariff, a route to removing the 25% steel and aluminium tariffs, and tariff-free pharmaceuticals; only partly implemented by April 2026.

    Who and when:
    Starmer government (to July 2026), 8 May 2025.
    Since 20 July 2026:
    Not confirmed either way since the change of Prime Minister on 20 July 2026. No Burnham-government statement on the deal was found; the US legal basis for the 10% tariff changed in February 2026 (Commons Library, April 2026).

    Checked 4 October 2026. A commitment is not delivery.

    Options (1)
    • Complete the US deal and reduce EU friction (on Brexit)

      Acts on the two markets that take most UK exports.

      Who: Department for Business and Trade; Cabinet Office · Evidence: Untested proposal · Status: Announced proposal · Works through Brexit: Trade terms are negotiated and tracked on the Brexit and trade page.

      Source: House of Commons Library, US trade tariffs (Research Briefing CBP-10240) (Summary (archived copy, 22 May 2026))

The actions worth examining

Our shortlist for this page. Research quality, policy status, cost and funding are judged separately; none of these is government policy unless its status says so.Our shortlist. None is government policy unless its status says so.

  1. Turn permissions into homes people can live in — not yet costed / funding not identified
  2. Offer evidence-based employment support alongside healthcare — indicative costing / partial funding
  3. Give productive investment a stable delivery pipeline — programme funding exists; project allocation unconfirmed
  • Action 1A01Policy status: site-editorial action

    Turn permissions into homes people can live in

    Name the blocker, owner and infrastructure cost for each priority site, then fund and sequence the connections that let building start.

    The thread: issue, evidence, action

    1. Issue Weakness (Housing): England added 208,600 homes, against about 300,000 a year implied by the government’s 1.5 million ambition. Also: opportunity, strengthHow acting here reaches it: Homes where the jobs are lower housing costs relative to pay, so more permissions turned into completed homes act on living standards through the supply shortfall the housing page measures.
    2. Evidence Net additional homes
    3. Action A01, this action

    Assessment (draft, 6 October review)

    • A new scope of this action (A01v2): Homes built, not just permitted

      Delivery RAG: RedGate: pending

      Range if completed: 14.0–20.0 out of 30 (equal weights; not yet assessed: expected incremental benefit (Bn), incremental affordability (Co))

      National plan: Growth and prosperity list

    Who decides:
    MHCLG and local planning authorities, with utilities, transport bodies and developers (England)
    Evidence:
    Modelled scenario. The underlying reforms have an official modelled estimate; this site-by-site package has not been evaluated.
    Expected effect:
    Direction plausible; size not established.
    Cost and funding

    Not yet costed

    Funding: Not yet costed / funding not identified

    Why it is shortlisted here: Housing costs are one reason higher real pay has not felt like higher living standards; this targets the step where permissions stall before they become homes.

    What it takes
    The problem

    Permissions and plans do not become occupied homes when sites are held up by missing infrastructure, viability, finance or builders.

    Who is affected, and where

    Households who need a home in high-demand areas of England. Territory: England. Planning is devolved: Scotland, Wales and Northern Ireland run separate systems and would need their own decisions; not assessed here.

    Policy status

    UK Facts proposal. Builds on reforms already in place: the National Planning Policy Framework published on 17 August 2026, which replaced the December 2024 version, and the Planning and Infrastructure Act 2025 (Royal Assent 18 December 2025). The site-by-site blocker list is a UK Facts proposal, not government policy.

    The evidence
    What the research found:
    The OBR judged that the revised planning framework would add about 170,000 net additional homes over 2025–26 to 2029–30. LSE’s qualitative research stresses certainty and meaningful participation; Centre for Cities proposes zoning instead but gives no estimate of its effect.
    Evaluated on:
    UK housing stock in the OBR forecast; qualitative research with planners and landowners; England, 2025–2030 forecast period
    Transfer to this case:
    The OBR estimate is for the reforms already enacted, not for any further package.
    Our recommendation (separate from the research):
    Publish the blocker, owner and cost for a small set of priority sites and count occupied homes, not permissions.
    Strongest counter-evidence:
    Centre for Cities argues incremental reform of a discretionary system cannot close the gap and proposes zoning; neither approach has a UK effect estimate.
    Effects on record
    • Net additional homes: Direction plausible; size not established. modelled, limited confidence; England. The OBR’s 170,000 extra homes by 2029–30 is its judgement of the 2024 planning reforms already in place, not of this site-by-site package, whose marginal effect has not been estimated.
    Cost and funding

    Cost completeness: Not yet costed. Funding: Not yet costed / funding not identified.

    • Planning staff, site infrastructure and financing for priority sites (capital; paid by central government, councils, developers): Not yet costed. No defensible national price found. Planning capacity (recurring), utilities and transport connections (capital) and financing must be costed separately for each site.
    Who pays:
    Central government and councils for planning capacity and enabling infrastructure; developers through fees and contributions; utilities and their bill-payers for connections.
    Financing proposed:
    Planning fees, developer contributions and named infrastructure allocations — each to be checked for legal use and timing.
    Gap remaining:
    Unknown until priority sites are costed.
    What delivery needs
    Skills:
    Planning officers and infrastructure specialists in councils.
    Operational capacity:
    Site-level data on blockers.
    Infrastructure:
    Water, power and transport connections.
    Permissions:
    Local plans and permissions.
    Law:
    Powers exist under current planning law.
    Public consent:
    Local consent for development; environmental trade-offs.
    First step and stages

    First step: Publish the actual blocker, owner and infrastructure cost for a small set of priority sites. (owner: MHCLG with local planning authorities)

    1. Select sites and diagnose blockers — MHCLG and councils (proposed stage, not an official timetable)
    2. Fund and sequence connections — Treasury, utilities, councils (proposed stage, not an official timetable)
    3. Build and occupy — Developers and housing associations (proposed stage, not an official timetable)

    Depends on: Construction workforce; Utility connection capacity

    Trade-offs
    Who gains and who loses:
    Gains for future residents and those who need affordable homes; costs for neighbouring residents (disruption, green space) and for whoever funds infrastructure.
    What else the money or effort could do:
    Infrastructure money and planning staff spent here are not available for other sites or services.
    Strongest counterargument:
    Faster permission alone may not make sites viable or speed building, which depends on demand, finance and builders.
    Risks:
    Local opposition, environmental harm, construction capacity limits and counting permissions as delivery.
    How we would judge it
    Baseline:
    Net additional dwellings, England (MHCLG Live Table 120).
    Leading indicator:
    Time from application to start on site at priority sites.
    Outcome:
    Net additional and occupied homes, affordable tenure and rents relative to income.
    Continue, adapt or stop:
    Continue where priority sites start faster than comparable sites; stop funding sites whose blocker is not infrastructure.
    Earlier option on this page

    This card replaces the option “Planning reform so homes and infrastructure get built” (legislated: In force: National Planning Policy Framework revised December 2024 (the change the OBR estimate covers); Planning and Infrastructure Act 2025, Royal Assent 18 December 2025 (no OBR estimate attached here).). Its evidence: The OBR estimated in March 2025 that the December 2024 changes to the National Planning Policy Framework would add about 170,000 homes and make the economy about 0.2% larger by 2029–30, possibly over 0.4% by 2034–35. It is a conditional, modelled estimate, not an observed result: it depends on councils applying the framework and the homes being built, and it predates the Planning and Infrastructure Act 2025, which it does not cover. MHCLG, OBR concludes planning reforms will bring housebuilding to its highest level in 40 years (26 March 2025) · OBR, The supply-side impact of planning reforms (14 August 2025)

    Sources

    Source published March 2025 (OBR); 2025 (LSE); February 2025 (Centre for Cities); evidence reviewed 2026-10-04. Reconsider if: The OBR publishes a new estimate of the planning reforms; Net additions move decisively away from the 2024–25 level; The government publishes site-level infrastructure data.

    Also on: Housing, Growth — one shared record, so its cost is counted once.

  • Action 2A09Policy status: funded programme

    Offer evidence-based employment support alongside healthcare

    Individual Placement and Support puts an employment specialist alongside health services to find matched work quickly and keep supporting the person once they start.

    Assessment (draft, 6 October review)

    Who decides:
    DWP and local authority delivery areas (Connect to Work), with NHS commissioners (England and Wales)
    Evidence:
    Experimental or quasi-experimental evaluation. Randomised trials of an adapted model found modest effects that varied by place; evidence is strongest for severe mental illness, a different group.
    Expected effect:
    +4 percentage points (22% vs 18%): working 13 or more weeks in the year after joining (out-of-work participants) (West Midlands Combined Authority). No effect for out-of-work participants in Sheffield City Region, and no effect on earnings at 12 months. 2 more results in “What it takes”.
    Cost and funding

    £1.03bn in total, 2025–26 to 2028–29, cash (nominal) prices; 2 further cost lines, some not yet costed

    Funding: Indicative costing / partial funding

    Why it is shortlisted here: More people are out of work through long-term sickness than before 2020; integrated, evidence-based employment support is already funded and needs to be held to fidelity and judged on sustained work.

    What it takes
    The problem

    People with health conditions who want to work often get employment help that is separate from their care and does not stay with them in work.

    Who is affected, and where

    Adults with health conditions or disabilities who want to work, in England and Wales. Territory: England and Wales. Connect to Work covers England and Wales; Scotland and Northern Ireland run their own employment support.

    Policy status

    A funded programme already exists. Connect to Work has taken referrals since April 2025 and aims to support about 300,000 people by 2029/30; IPS also operates in NHS mental health services. The proposal here is to hold it to fidelity and integrate it with care, not to start something new.

    The evidence
    What the research found:
    Working 13+ weeks in a year: +4 percentage points for out-of-work participants in the West Midlands; +3 points for people in work in Sheffield City Region (weaker evidence); no effect for out-of-work participants there; no earnings effect at 12 months; small health gains in Sheffield City Region only.
    Evaluated on:
    9,785 adults with mild to moderate health conditions, in or out of work; Sheffield City Region and West Midlands, 2018–2020
    Transfer to this case:
    Results for severe mental illness or for one area should not be assumed for all economically inactive people.
    Our recommendation (separate from the research):
    Keep delivery at fidelity, integrate it with NHS care, and judge it by sustained work and health, not referrals or starts.
    Strongest counter-evidence:
    One of three trial groups saw no employment effect and the Exchequer return within a year was 1–2p per £1; benefits were mainly in health and wellbeing, and only in one area.
    Effects on record
    • Working 13 or more weeks in the year after joining (out-of-work participants): +4 percentage points (22% vs 18%) (randomised control group receiving usual support; 12 months after randomisation, 2018–2020; significant at the 99% level; no interval published). evaluated, moderate confidence; West Midlands Combined Authority. No effect for out-of-work participants in Sheffield City Region, and no effect on earnings at 12 months.
    • Working 13 or more weeks in the year after joining (people in work but struggling): +3 percentage points (randomised control group; 12 months after randomisation, 2018–2020; significant only at the 90% level; no interval published). evaluated, limited confidence; Sheffield City Region. Weaker evidence than the West Midlands result.
    • Self-reported health (EQ-5D-5L) at 12 months: +0.10 standard deviations (randomised control group; 12 months after randomisation; significant at the 90% level (99% when Sheffield groups are pooled); no effect in the West Midlands). evaluated, limited confidence; Sheffield City Region. Small; not found in the West Midlands. Not evidence of reduced NHS demand.
    Cost and funding

    Cost completeness: Partly costed. Funding: Indicative costing / partial funding.

    • Connect to Work grant and programme costs, 2025–26 to 2028–29 (recurring spending; paid by central government): £1.03bn in total, 2025–26 to 2028–29, cash (nominal) prices. Sum of the four years in the revised business case. Excludes £15.5m spent in 2023–24 and 2024–25.
    • Connect to Work costs, 2029–30 to 2031–32 (recurring spending; paid by central government): £134.4m in total, 2029–30 to 2031–32, cash (nominal) prices. Sum of the last three years in the revised business case.
    • NHS clinical integration, referral and supervision for IPS (recurring spending; paid by NHS): Not yet costed. Not in the DWP business case. An older national IPS price is not a current rollout budget.
    • Autumn Budget 2024 and Spending Review 2025 settlements for Connect to Work: £1.09bn, 2025–26 to 2028–29 — committed (allocated to this scope). £114m for 2025–26 plus £978m for 2026–27 to 2028–29. The business case says funding and costs differ because volume forecasts changed.
    • Connect to Work funding to be requested at a future Spending Review: £138m, 2029–30 to 2031–32 — not committed (no allocation). “Will be requested in a future Spending Review.”
    Who pays:
    DWP for Connect to Work grants; the NHS for clinical integration and IPS in mental health services.
    Financing proposed:
    £138m for 2029–30 onwards is to be requested at a future Spending Review.
    Gap remaining:
    Connect to Work is funded to 2028–29; the later years are not committed and the NHS-side integration cost is not established.
    What delivery needs
    Skills:
    Trained employment specialists and supervisors.
    Operational capacity:
    NHS referral routes and fidelity reviews.
    Infrastructure:
    None beyond services.
    Permissions:
    Data sharing between health and employment services.
    Law:
    No new law.
    Public consent:
    Voluntary for participants.
    First step and stages

    First step: Select the eligible group, service standard and an existing capacity gap in one area. (owner: DWP delivery areas and NHS commissioners)

    1. Recruit and train to fidelity — Connect to Work delivery areas (proposed stage, not an official timetable)
    2. Refer and support into work — Providers with NHS teams (proposed stage, not an official timetable)
    3. Measure sustained work and health from payroll and survey data — DWP (proposed stage, not an official timetable)

    Depends on: NHS capacity to refer and integrate; Employer vacancies

    Trade-offs
    Who gains and who loses:
    Gains for participants who find suitable work; intensive support per person means fewer people reached.
    What else the money or effort could do:
    The same money could fund less intensive support for more people, or health services directly.
    Strongest counterargument:
    Trial effects were modest and inconsistent; scaling may dilute fidelity further.
    Risks:
    Unsuitable jobs, pressure on people who are not ready, and over-claiming benefit savings.
    How we would judge it
    Baseline:
    Economic inactivity due to long-term sickness (ONS Labour Force Survey).
    Leading indicator:
    Programme starts and the share in paid work within 12 months.
    Outcome:
    Employment sustained 6–12 months later (HMRC payroll data), job quality and health.
    Continue, adapt or stop:
    Continue where sustained work beats a matched comparison; adapt or stop where it does not.
    Sources

    Source published April 2023 (trials); July 2026 (business case); evidence reviewed 2026-10-04. Reconsider if: Connect to Work impact evaluation results; The next Spending Review; New trials in different populations.

    Also on: NHS, Jobs and pay, Benefits — one shared record, so its cost is counted once.

  • Action 3A03Policy status: established

    Give productive investment a stable delivery pipeline

    Publish which pipeline projects are approved and funded, with milestones and maintenance, so firms can invest in skills and capacity ahead of delivery — then judge success by assets completed and used.

    Assessment (draft, 6 October review)

    Who decides:
    HM Treasury and NISTA, with spending departments, devolved governments and local delivery bodies (UK)
    Evidence:
    Modelled scenario. The OBR has modelled what extra public investment does to potential output in general; no study measures the effect of a published pipeline itself.
    Expected effect:
    Direction plausible; size not established.
    Cost and funding

    £725bn in total, “Over the next decade” from June 2025; Spending Review 2025 totals to 2029–30, then grown with forecast inflation (HM Treasury footnote 12). Exact fiscal years are not stated for the headline., cash (nominal) prices; 1 further cost line, some not yet costed

    Funding: Programme funding exists; project allocation unconfirmed

    Why it is shortlisted here: Output per hour sets the long-run ceiling on pay; a stable, published investment pipeline is the mechanism, judged by assets completed and used rather than announcements. The full record sits with Growth and productivity.

    Builds on the option Tax incentives for business investment compared below.

    What it takes
    The problem

    UK investment has been low and erratic, so builders, suppliers and investors cannot plan the people and capacity that projects need.

    Who is affected, and where

    Users of transport, energy, water, digital and public-service infrastructure across the UK; construction firms and their workforce. Territory: UK. The Infrastructure Pipeline covers UK government projects plus regulated sectors and mayoral authorities; devolved governments run their own capital programmes, not assessed here.

    Policy status

    Already in place. Already government policy: the 10 Year Infrastructure Strategy (June 2025) commits at least £725bn over a decade and launched an online Infrastructure Pipeline in July 2025, updated at least every six months. UK Facts’ addition is to separate approved from aspirational projects on the page and to count completed, used assets rather than announcements.

    The evidence
    What the research found:
    A permanent rise in public investment of 1% of GDP raises potential output by about 0.4% after five years and 2.4% after 50 years, if projects are as productive as average public capital (OBR). The Resolution Foundation/LSE inquiry found UK firms invested about 20% less than US, French and German firms since 2005.
    Evaluated on:
    UK public capital stock (OBR model); United Kingdom, 5- and 50-year horizons
    Transfer to this case:
    The OBR result is for investment of average productivity; a specific project can do better or worse.
    Our recommendation (separate from the research):
    Report each pipeline project as approved, funded, in delivery or complete, with whole-life and maintenance costs; never present a growth multiplier as a substitute for project costing.
    Strongest counter-evidence:
    Higher capital spending can be wasted where projects are poorly appraised or managed; the NAO finds spending decisions have been short-term, and the Green Book warns of optimism bias. Borrowing to invest raises debt interest, and construction labour is already short.
    Effects on record
    • Potential output: Direction plausible; size not established. modelled, limited confidence; United Kingdom. The OBR’s +0.4% of potential output after five years (2.4% after 50) is for a permanent rise of 1% of GDP in investment of average productivity — not an estimate for a pipeline, and not cash for the Exchequer.
    Cost and funding

    Cost completeness: Published programme envelope; project costs still needed. Funding: Programme funding exists; project allocation unconfirmed.

    • 10 Year Infrastructure Strategy: government infrastructure funding (programme envelope) (capital; paid by central government, councils): £725bn in total, “Over the next decade” from June 2025; Spending Review 2025 totals to 2029–30, then grown with forecast inflation (HM Treasury footnote 12). Exact fiscal years are not stated for the headline., cash (nominal) prices. “At least £725bn”, an internal HM Treasury calculation. It includes housing and energy capital, so it overlaps the Social and Affordable Homes Programme (C-SAHP-ENVELOPE, A02) and Warm Homes funding (A18): never add it to them. Not an award to any project.
    • Project capital, maintenance, financing and workforce costs for pipeline projects (capital; paid by central government, councils, bill-payers, private investors): Not yet costed. Costs exist project by project (the Pipeline lists projects of £25m+ economic and £15m+ social). A national growth multiplier is not a substitute for project costing.
    • Ten-year infrastructure funding commitment (at least £725bn): £725bn — not committed (programme envelope, not a project award). Covers housing and energy capital too; the same money cannot be claimed again for A02 or A18. Project awards come through departmental business cases.
    Who pays:
    Central and local government capital budgets (taxpayers, and future taxpayers through borrowing); bill-payers for regulated water and energy projects; private investors for privately financed schemes.
    Financing proposed:
    Departmental capital settlements to 2029–30 from Spending Review 2025; beyond that, the Strategy’s commitment to grow capital with inflation. Additional projects need an explicit tax, reprioritisation or borrowing decision.
    Gap remaining:
    Unknown at project level: the £725bn is a ten-year cross-sector envelope, and project costs, maintenance and financing are published only project by project.
    What delivery needs
    Skills:
    Construction and engineering workforce, which the Strategy says is in significant deficit.
    Operational capacity:
    Appraisal and commercial capacity in departments and NISTA.
    Infrastructure:
    Grid connections, planning consents and supply chains for each project.
    Permissions:
    Development consent and local planning decisions.
    Law:
    Existing powers; the Planning and Infrastructure Act 2025 changes consenting.
    Public consent:
    Local acceptance of major projects; trade-offs with other spending.
    First step and stages

    First step: For each sector, publish which pipeline projects have approved, funded business cases and which are aspirations, with a milestone for each. (owner: NISTA with HM Treasury and departments)

    1. Classify pipeline projects by approval and funding status — NISTA (proposed stage, not an official timetable)
    2. Appraise and sequence before procurement — Departments, HM Treasury (proposed stage, not an official timetable)
    3. Report milestones, completion and use for each project — NISTA and delivery bodies (proposed stage, not an official timetable)

    Depends on: A01: consents that become starts; A45: shared construction workforce and grid capacity; Spending Review capital settlements

    Trade-offs
    Who gains and who loses:
    Benefits depend on where projects are built and who uses them; costs fall on taxpayers, bill-payers and communities near construction.
    What else the money or effort could do:
    Capital and construction workers used on one project are not available for others or for current services.
    Strongest counterargument:
    Stable plans can lock in poor projects; flexibility to cancel weak schemes also has value.
    Risks:
    Cost escalation, labour shortages, interest costs and counting announcements as delivery.
    How we would judge it
    Baseline:
    Gross fixed capital formation as a share of GDP (UK 18.7% in 2024, lowest in the G7).
    Leading indicator:
    Share of pipeline projects with a funded business case and published milestones.
    Outcome:
    Assets completed and in use; reliability; productivity, with an explicit attribution limit.
    Continue, adapt or stop:
    Continue where projects reach milestones near their published cost; review the pipeline when completions fall persistently behind plan.
    Sources

    Source published June 2025 (10 Year Strategy); August 2024 (OBR); December 2023 (Resolution Foundation/LSE); evidence reviewed 2026-10-04. Reconsider if: The next Infrastructure Pipeline update; A Spending Review resets capital budgets; An evaluation of pipeline effects on construction capacity.

    Also on: Growth — one shared record, so its cost is counted once.

Decision briefs on other pages

What it would take

The order things have to happen in, who pays, and the effects and appraisals on record.

The order things have to happen in

  1. First, the prerequisite

    Publish the blocker, owner and infrastructure cost for priority housing sites

    Owner: MHCLG with local planning authorities

    No date: the timing depends on the steps before it.

  2. Then, the decision

    Keep Connect to Work at fidelity and agree NHS referral routes in each area

    Owner: DWP delivery areas and NHS commissioners

    No date: the timing depends on the steps before it.

  3. Then, delivery

    Build and occupy homes on unblocked sites; support participants into sustained work

    Owner: Developers, housing associations and Connect to Work providers

    No date: the timing depends on the steps before it.

  4. Finally, the measured outcome

    Real household income per head rising, including in the lowest fifth after housing costs

    Owner: ONS and DWP statistics

    No date: the timing depends on the steps before it.

Who pays, and what is still missing

Cost, committed funding and the remaining gap for the same scope and years. A programme envelope is not an award to a project; a proposal is not committed money. No total is shown because these costs are on different bases or periods and cannot be added.

Cost and funding ledger

  • Planning staff, site infrastructure and financing for priority sites

    A01 · capital · not costed

    Amount
    Not yet costed
    Who pays
    central government, councils, developers
    Committed
    None identified
    Proposed, not committed
    —
    Gap
    Not established
  • Connect to Work grant and programme costs, 2025–26 to 2028–29

    A09 · recurring spending · complete for scope

    Amount
    £1.03bn in total, 2025–26 to 2028–29, cash (nominal) prices
    Who pays
    central government
    Committed
    £1.09bn
    Proposed, not committed
    —
    Gap
    None for this scope
  • Connect to Work costs, 2029–30 to 2031–32

    A09 · recurring spending · complete for scope

    Amount
    £134.4m in total, 2029–30 to 2031–32, cash (nominal) prices
    Who pays
    central government
    Committed
    None identified
    Proposed, not committed
    £138m (Connect to Work funding to be requested at a future Spending Review)
    Gap
    £134.4m
  • NHS clinical integration, referral and supervision for IPS

    A09 · recurring spending · not costed

    Amount
    Not yet costed
    Who pays
    NHS
    Committed
    None identified
    Proposed, not committed
    —
    Gap
    Not established
  • 10 Year Infrastructure Strategy: government infrastructure funding (programme envelope)

    A03 · capital · published programme envelope

    Amount
    £725bn in total, “Over the next decade” from June 2025; Spending Review 2025 totals to 2029–30, then grown with forecast inflation (HM Treasury footnote 12). Exact fiscal years are not stated for the headline., cash (nominal) prices
    Who pays
    central government, councils
    Committed
    None identified
    Proposed, not committed
    £725bn (Ten-year infrastructure funding commitment (at least £725bn))
    Gap
    Not established
  • Project capital, maintenance, financing and workforce costs for pipeline projects

    A03 · capital · not costed

    Amount
    Not yet costed
    Who pays
    central government, councils, bill-payers, private investors
    Committed
    None identified
    Proposed, not committed
    —
    Gap
    Not established

“Not yet costed” means no defensible cost has been found — not that the action is free. Lifetime benefits, benefit-cost ratios and forecast savings are never shown here as money available to spend.

Effects on record, with evidence ratings (5 records)

What the evidence says each action changes

Effects on record — these measure different outcomes, so they are not drawn on one scale
ActionOutcome and areaEffectCompared withEvidence
Turn permissions into homes people can live inNet additional homes HousingDirection plausible; size not established—modelled; limited confidence; EnglandThe OBR’s 170,000 extra homes by 2029–30 is its judgement of the 2024 planning reforms already in place, not of this site-by-site package, whose marginal effect has not been estimated.
Offer evidence-based employment support alongside healthcareWorking 13 or more weeks in the year after joining (out-of-work participants) Work and pay+4 percentage points (22% vs 18%)significant at the 99% level; no interval publishedrandomised control group receiving usual support; 12 months after randomisation, 2018–2020evaluated; moderate confidence; West Midlands Combined AuthorityNo effect for out-of-work participants in Sheffield City Region, and no effect on earnings at 12 months.
Offer evidence-based employment support alongside healthcareWorking 13 or more weeks in the year after joining (people in work but struggling) Work and pay+3 percentage pointssignificant only at the 90% level; no interval publishedrandomised control group; 12 months after randomisation, 2018–2020evaluated; limited confidence; Sheffield City RegionWeaker evidence than the West Midlands result.
Offer evidence-based employment support alongside healthcareSelf-reported health (EQ-5D-5L) at 12 months Health and care+0.10 standard deviationssignificant at the 90% level (99% when Sheffield groups are pooled); no effect in the West Midlandsrandomised control group; 12 months after randomisationevaluated; limited confidence; Sheffield City RegionSmall; not found in the West Midlands. Not evidence of reduced NHS demand.
Give productive investment a stable delivery pipelinePotential output Living standards and growthDirection plausible; size not established—modelled; limited confidence; United KingdomThe OBR’s +0.4% of potential output after five years (2.4% after 50) is for a permanent rise of 1% of GDP in investment of average productivity — not an estimate for a pipeline, and not cash for the Exchequer.

How we would know

Real household disposable income per head; Average real weekly pay; Median income of the lowest fifth, after housing costs.

The outcome measures to watch. A baseline is where we start, not a target; where there is no official target we say so.

Where the ideas come from

Research, counter-evidence and methods (22 sources; 2 claims held back)
  • Ending Stagnation: A New Economic Strategy for Britain — Resolution Foundation / LSE Centre for Economic Performance, 2023-12-04.Final report of the Economy 2030 Inquiry: synthesis of about 70 reports with policy proposals; United Kingdom, with international comparisons. Relevant passages checked, 2026-10-04. Limits: A strategy, not an evaluation: no estimate of what any single reform would deliver; its £8,300 household figure is a comparison with peer countries, not a policy effect. Data to 2023.
  • Planning and Infrastructure Act 2025 (c. 34) — legislation.gov.uk, 2025-12-18 (Royal Assent).Legislation; England (mainly). Relevant passages checked, 2026-10-04.
  • National Planning Policy Framework — MHCLG, 2026-08-17.Government publication. Relevant passages checked, 2026-10-04.
  • Average weekly earnings: real terms, whole economy, total pay — Office for National Statistics, 15 September 2026.Official statistics; Great Britain. Relevant passages checked, 2026-10-04.
  • Gross domestic product per head, chained volume measure (Quarterly National Accounts) — Office for National Statistics, 30 September 2026.Official statistics (national accounts); United Kingdom. Relevant passages checked, 2026-10-04.
  • Real households’ disposable income per head (UK Economic Accounts) — Office for National Statistics, 30 September 2026.Official statistics (national accounts); United Kingdom. Relevant passages checked, 2026-10-04.
  • Economic and fiscal outlook, March 2025 — Office for Budget Responsibility, 2025-03-26.Official forecast; United Kingdom. Relevant passages checked, 2026-10-04. Limits: A modelled judgement about the 2024 planning reforms, not about any further package, and not an observed effect.
  • Health-led Employment Trials: evaluation synthesis report — Department for Work and Pensions, 2023-04.Randomised controlled trials of an adapted IPS service with economic and process evaluations; 9,785 people randomised in Sheffield City Region and the West Midlands, May 2018 to October 2019; people with mild to moderate physical or mental health conditions, in or out of work; Two English combined authorities. Relevant passages checked, 2026-10-04. Limits: Adapted IPS for mild to moderate conditions; results differ sharply by site and group. Not evidence about severe mental illness or all economically inactive people.
  • The supply-side impact of planning reforms: land value uplift and construction sector productivity — Office for Budget Responsibility, 2025-08-14.Official forecast (methodology article); United Kingdom. Full text checked, 2026-10-04. Limits: A conditional modelled estimate of the December 2024 framework changes, not an observed outcome and not an estimate of the Planning and Infrastructure Act 2025. The OBR says there is “a wide range of uncertainty” around its land-value judgement and calls its construction-sector judgement “particularly uncertain”.
  • Economic and fiscal outlook – March 2026 — Office for Budget Responsibility, 2026-03.Official publication. Relevant passages checked, 2026-10-04.
  • Consumer price inflation, UK: August 2026 — Office for National Statistics, 16 September 2026.Official statistics; United Kingdom. Relevant passages checked, 2026-10-04.
  • How do higher interest rates help to lower inflation? — Bank of England, 2023-05-11 (last updated).Official explainer of the monetary-policy mechanism; United Kingdom. Full text checked, 2026-10-04. Limits: An explainer framed around the 2022 energy and food shock; it does not discuss broad fiscal stimulus.
  • Trade and investment core statistics book — Department for Business and Trade, 2026-09-18 (update).Official statistics (compiled from ONS); United Kingdom. Relevant passages checked, 2026-10-04.
  • Planning with purpose: reforming the planning system to meet modern needs — London School of Economics (LSE article on research by Liz Williams, Meg Hennessy and Olexiy Pedosenko), 2025-03-25.Media article on a qualitative report (expert workshops, a jury of 27 people aged 25–45 working in urban development, a roundtable of 18 landowners); England. Relevant passages checked, 2026-10-04. Limits: Qualitative; supports arguments about participation and certainty, not any quantified supply effect.
  • A zoning system for England — Centre for Cities, 2025-02.Policy briefing with international comparison; England. Relevant passages checked, 2026-10-04. Limits: No estimate of what zoning itself would deliver; its 4.3 million “missing homes” figure is a comparison with Western Europe, not an effect.
  • Connect to Work: Programme Business Case 2 summary — Department for Work and Pensions, 2026-07-30.Programme business case; England and Wales. Full text checked, 2026-10-04.
  • Investment priorities for mental health 2025 — Centre for Mental Health, 2025-05-07.Evidence review and policy proposals. Full text checked, 2026-10-04. Limits: Supports examining Individual Placement and Support for appropriate populations. Check original trials, service fidelity and the vintage of any national costing before reuse.
  • UK Infrastructure: A 10 Year Strategy — HM Treasury and NISTA, 2025-06-19.Government strategy; United Kingdom. Relevant passages checked, 2026-10-04. Limits: The £725bn is a ten-year envelope across sectors, not a project award, and overlaps with sector programmes such as the Social and Affordable Homes Programme.
  • Public investment and potential output (Discussion Paper No. 5) — Office for Budget Responsibility, 2024-08.Modelling paper; United Kingdom. Relevant passages checked, 2026-10-04. Limits: A generic modelled scenario; it says nothing about any particular pipeline or project, and output is not cash for the Exchequer.
  • Lessons learned: a planning and spending framework that enables long-term value for money (HC 234, Session 2024-25) — National Audit Office, 2024-10-27.Audit synthesis of NAO value-for-money work (HC 234, 2024–25); UK central government. Relevant passages checked, 2026-10-04. Limits: Written before the 2025 Spending Review; a published plan is an input to accountability, not a service improvement.
  • The Green Book (2026) — HM Treasury, 2026-02-05.Official appraisal guidance. Relevant passages checked, 2026-10-04. Limits: Guidance; a positive benefit-cost ratio identifies no funding source.
  • Households Below Average Income: financial years ending 1995 to 2025 — Department for Work and Pensions, 26 March 2026.Official statistics (survey); United Kingdom. Relevant passages checked, 2026-10-04.

Counter-evidence and criticism

  • Turn permissions into homes people can live in: Centre for Cities argues incremental reform of a discretionary system cannot close the gap and proposes zoning; neither approach has a UK effect estimate. (Centre for Cities)
  • Offer evidence-based employment support alongside healthcare: One of three trial groups saw no employment effect and the Exchequer return within a year was 1–2p per £1; benefits were mainly in health and wellbeing, and only in one area. (Department for Work and Pensions)
  • Give productive investment a stable delivery pipeline: Higher capital spending can be wasted where projects are poorly appraised or managed; the NAO finds spending decisions have been short-term, and the Green Book warns of optimism bias. Borrowing to invest raises debt interest, and construction labour is already short. (National Audit Office; HM Treasury)

Claims held back

  • Delivery delays weaken growth gains (brief threat, cited to S01) — The report stresses slow growth and inequality; “delivery delays” is the brief’s own framing, not a finding of the source. Needed: An audit or evaluation of delays to specific investment programmes and their effect on output.
  • A typical household would be £8,300 better off — This is a comparison with peer countries’ income and inequality, not a projected effect of any policy. Needed: Not used as a policy effect; it would need a model of a specified package.

“Full text checked” means we read the report itself; “relevant passages” means the sections behind each figure; “summary or abstract only” means we could not read the full study, so no number from it is published here without another source.

Other options compared — not on the shortlist (4)

Other options compared

Options from earlier work on this page that are not on the shortlist. They remain valid choices; their evidence is shown as before.

  • capacityStatus: legislated

    Tax incentives for business investment

    Aims to:
    More business investment in machinery and equipment, raising output per hour over time.
    How:
    Full expensing lets companies deduct the whole cost of qualifying plant and machinery from taxable profits in the year they buy it, lowering the cost of capital and bringing investment forward.
    Who decides:
    HM Treasury (policy); HMRC (administration); companies (investment decisions).
    Main constraint:
    Applies only to companies paying corporation tax, on qualifying plant and machinery; weak demand or uncertainty can still hold investment back.
    Evidence:
    Limited evidence — plausible mechanism, little direct evaluation
    See the trade-offs and evidence
    What the evidence shows
    The OBR projected in November 2023 that making full expensing permanent would raise business investment by £14bn over its forecast and potential GDP by around 0.1% in the medium term. That is a model-based estimate, not an evaluation of what happened.
    Policy status
    Made permanent at the Autumn Statement 2023.
    Resources
    Forgone corporation tax receipts.
    Consent and decisions needed
    Already law; reversing or extending it is a Budget decision.
    Time
    Investment responds within a few years; any productivity effect builds more slowly.
    Cost and yield
    Official estimate: about £10.7bn in 2027–28 and £10.9bn in 2028–29 (cash, static Exchequer cost). Much of it is a timing effect, as deductions are taken earlier rather than later.
    Trade-offs and who pays
    Lower tax receipts in the near term; favours firms investing in equipment over buildings or intangible assets.
    How we would know it worked
    Leading indicator: Business investment as a share of GDP. Outcome: Output per hour worked. It would not be working if: Business investment does not rise relative to GDP in the years after the change.
  • capacityStatus: operating

    Skills and technical training

    Aims to:
    A workforce with the technical skills employers need, raising pay and output per hour.
    How:
    Apprenticeships, further education and adult training raise the skills of people already in work or about to start, so they can do higher-value work.
    Who decides:
    Department for Education and Skills England; colleges and training providers; employers.
    Main constraint:
    Further education teacher recruitment; employers’ willingness to train; years before newly trained workers add output.
    Evidence:
    Moderate evidence — evaluated, with limits on scope or transfer
    See the trade-offs and evidence
    What the evidence shows
    DfE estimates large lifetime earnings returns to further education, highest for Level 3 apprenticeships, by comparing people who complete qualifications with people who start but do not finish. That method may overstate the causal effect, and it measures individual pay, not whole-economy productivity.
    Resources
    Training places, teaching staff, employer time and apprenticeship levy funding.
    Consent and decisions needed
    Spending Review settlements; how levy money is spent is contested between employers and government.
    Time
    One to four years per qualification; economy-wide effects take longer.
    Cost and yield
    Depends on scale; no single official costing of a step change is cited here.
    Trade-offs and who pays
    Funding for adult and technical training competes with schools and universities.
    How we would know it worked
    Leading indicator: Apprenticeship and Level 3 achievements. Outcome: Earnings of completers and output per hour. It would not be working if: Achievements rise with no gain in completers’ earnings relative to similar people.
  • structuralStatus: operating

    Cheaper, more reliable energy for homes and firms

    Aims to:
    Lower and less volatile energy bills, freeing household income and making energy-intensive production viable.
    How:
    More domestic generation, grid connections and storage reduce exposure to imported gas prices; insulation cuts the energy homes need.
    Who decides:
    DESNZ, Ofgem, the National Energy System Operator and network companies.
    Main constraint:
    Grid connection queues, planning, supply chains.
    Evidence:
    Not evaluated — a mechanism to test, not an evidenced fix
    See the trade-offs and evidence
    What the evidence shows
    The 2022 price shock showed how gas prices pass through to bills and inflation. Whether specific supply investments will lower bills, and when, is modelled rather than evaluated; the energy pages set out the options and their costs.
    Policy status
    Detailed options are compared on the energy pages.
    Resources
    Large capital investment recovered through bills or taxes; grid and construction capacity.
    Consent and decisions needed
    Planning permission for generation and networks; how costs are shared between bills and taxes.
    Time
    Years to decades.
    Cost and yield
    Large; no single figure applies.
    Trade-offs and who pays
    Higher costs on bills during the build-out in exchange for lower exposure later.
    How we would know it worked
    Leading indicator: Share of electricity not set by gas prices. Outcome: Household energy bills relative to income. It would not be working if: The next gas price spike passes through to bills as fully as in 2022.
  • immediate reliefStatus: external option

    Targeted cash support for low-income households

    Aims to:
    Low-income households can pay for essentials during a price shock without falling into arrears or debt.
    How:
    Lump-sum payments through the benefits system (as with the Cost of Living Payments of 2022–2024) top up income while prices are high. They lower household bills relative to income; they do not lower the inflation rate.
    Who decides:
    HM Treasury (budget) and DWP (delivery through benefit records); HMRC for tax-credit claimants.
    Main constraint:
    Flat payments miss people outside the benefits system and cannot match payments to need (household size, energy use).
    Evidence:
    Limited evidence — plausible mechanism, little direct evaluation
    See the trade-offs and evidence
    What the evidence shows
    The DWP evaluation of the 2023–24 payments found most recipients spent at least some of the money on energy bills and many said it helped them avoid borrowing, but that payments were “imperfectly targeted” and quickly absorbed by those with the highest essential costs. It relied on recipients’ own reports and had no comparison group.
    Policy status
    The 2022–2024 Cost of Living Payments have ended; a new scheme would need a fresh fiscal decision.
    Resources
    Exchequer money; DWP payment systems (already in place, which is why payments could be made quickly).
    Consent and decisions needed
    A Budget decision by the Chancellor; competes with other spending and borrowing limits.
    Time
    Weeks to months once announced, because DWP already holds the payment details.
    Cost and yield
    Scales with the number of recipients and the payment size; no current official costing because no scheme is proposed.
    Trade-offs and who pays
    Adds to demand while inflation is high (the Bank of England made the same point about energy support in 2022); borrowing or other spending must cover it.
    How we would know it worked
    Leading indicator: Share of eligible households paid within the target window. Outcome: Arrears, food-bank use and material deprivation among recipients during the shock. It would not be working if: Deprivation and arrears rise as much among recipients as among similar non-recipients.
The options side by side
OptionResourcesTimeEvidenceOutcome to watch
Tax incentives for business investmentForgone corporation tax receipts.Investment responds within a few years; any productivity effect builds more slowly.limitedOutput per hour worked.
Skills and technical trainingTraining places, teaching staff, employer time and apprenticeship levy funding.One to four years per qualification; economy-wide effects take longer.moderateEarnings of completers and output per hour.
Cheaper, more reliable energy for homes and firmsLarge capital investment recovered through bills or taxes; grid and construction capacity.Years to decades.not evaluatedHousehold energy bills relative to income.
Targeted cash support for low-income householdsExchequer money; DWP payment systems (already in place, which is why payments could be made quickly).Weeks to months once announced, because DWP already holds the payment details.limitedArrears, food-bank use and material deprivation among recipients during the shock.

Plan reviewed 2026-10-04. How we judge evidence.

How this connects

  • How much of pay goes on a home?

    Pay has risen 23.7% in real terms since 2000; whether that buys a home depends on prices, deposits and mortgage rates.

    Housing affordability uses median full-time earnings in England, a different pay measure from the one above.

  • Is work becoming more secure?

    Pay is one part of the jobs story; hours, temporary contracts and ill health are the others.

  • Who does the average leave out?

    Averages of pay and income say nothing about how they are shared, or about wealth.

  • Why are taxes so high?

    Slow growth in output per person limits what the state can spend without raising taxes or borrowing.

    Many other choices also shape the tax burden.

Sources and methods (18)

Method notes

  • Real pay (A3WX) covers employees in Great Britain; household income and GDP per head are UK-wide and per person. The three are shown separately, never on one axis.
  • GDP per head annual values are the sum of the four quarterly ONS values for complete calendar years; partial years are not used.
  • National accounts levels are only comparable within one release; all national-accounts figures here come from the 30 September 2026 release.
  • Household income by fifth (HBAI) is a survey estimate for financial years at 2024/25 prices, deflated by DWP using CPI-based indices.
  • The item-by-item cards use one window, 1996 to 2025, and one pay measure: median full-time gross weekly pay (NES 1996 £301.10, ASHE 2025 £766.60), the same pair as John’s story, so the cards and the story agree. The chart below them starts in 2000 because ONS’s average weekly earnings series (mean pay, KAB9) starts then. Pints use ONS’s average lager price (January 2025 for 2025), as in John’s story; the all-beer index is shown beside it. Private rent has no consistent official series before 2015.
  • “What a week’s pay buys” divides ONS average weekly pay in cash terms (KAB9) by one price at a time and rebases to 2000 = 100. 2000 is the first year of the stored pay series; 2007, the pre-crisis peak, is marked rather than used as the start.
  • No combined “essentials” figure is shown. Combining the lines would need spending weights; ONS publishes official weights for its own indices, and the Household Costs Indices are ONS’s own all-spending measure that includes mortgage interest, so they are shown instead.
  • UK Facts calculation, not an official statistic: a 95% loan on the UK average house price (all buyers, UK House Price Index), repaid over 25 years at that year’s average quoted 2-year fixed rate for 95% loan-to-value mortgages (Bank of England IUM2WTL), as if the rate applied for the whole term. First-time buyers usually pay less than the all-buyer average, but the official first-time-buyer price only starts in 2011.
  • The rent line starts in 2015, the first full year of ONS’s Price Index of Private Rents. Before that, ONS measured private rents for CPI with a method it later replaced, partly because it understated rent growth, so there is no consistent official private-rents series back to 2000.