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<p>The Office for Budget Responsibility (OBR) forecasts rates of inflation (through
the Consumer Price Index) and average earnings known as the OBR Historical Official
Forecasts database. A copy of this is attached.</p><p> </p><p>Using figures published
in the OBR Historical Official Forecasts Database, we note that between 2018 and 2021
earnings growth is forecasted to be consistently higher than inflation.</p><p> </p><p>Our
welfare reforms to working-age benefits are part of the Government’s commitment to
incentivise work as the best route out of poverty and support working families. This
includes the introduction of the National Living Wage and cutting income tax for over
30 million people. For those in a position to work, earnings provide the best opportunity
for income progression. Further, benefits for the additional cost of disability and
benefits for pensioners continue to be uprated, as we are committed to supporting
the most vulnerable groups.</p>
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