To ask the Chancellor of the Exchequer, what estimate his Department has made of the impact on economic growth of the measures for households announced in his Economy Update on 26 May 2022; and if he will make a statement.
Answered on
13 June 2022
The Government has published analysis alongside the May 2022 Cost of Living support package. This includes an analysis of the impact of the support package on households across the income distribution. The published report can be found at: https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/1078837/DA_May_2022_publication.pdf
Alongside this the published Cost of Living support factsheet can be found at: https://www.gov.uk/government/publications/cost-of-living-support/cost-of-living-support-factsheet-26-may-2022. This includes illustrative case-studies which show the combined impact of the Cost of Living package, support announced in February 2022, and changes in the labour market.
HM Treasury does not prepare formal forecasts for the UK economy. The macroeconomic impacts of the support package will be incorporated into the next forecast produced by the Office for Budget Responsibility (OBR).