UK households hit by squeeze on living standards despite fastest growth in G7

ONS confirms GDP growth at 0.7% between January and March but households saving less of disposable income

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UK households faced a renewed cost of living squeeze in the first three months of 2025 amid increases in taxes and inflation, official figures show, despite the economy growing at the fastest rate in the G7.

The Office for National Statistics said an important measure of living standards – real household disposable income per head – fell by 1% in the first quarter after growth of 1.8% in the final three months of 2024, in the first quarterly decline for almost two years.