Responding to the Chancellor's Autumn Budget announced on 26 November 2025, Ben Harrison, Director of the Work Foundation at Lancaster University said:

“It is welcome the Chancellor has attempted to bear down on cost of living pressures facing millions of UK workers while taking action to boost the economy.

“However, OBR forecasts cast doubt on whether the measures in the Budget meet the scale of the challenge. It predicts a delayed reduction in inflation, continued sluggish growth and relatively few economically inactive people moving back into work before the end of this Parliament.

“Commitments to freeze rail fares and to cut family energy bills by an average £150 have the potential to lower the rate of inflation in 2026. But inflation is only forecast to return to the Bank of England’s target of 2% by 2027 – a year later than previously anticipated. Taken together with the decision to freeze tax thresholds for a further three years, the reality is many workers may continue to feel a squeeze to their living standards over the coming period.

“With growth forecasts downgraded, it is also not clear whether Budget measures will address a series of worrying trends in the UK labour market. Unemployment is at a four year high, youth unemployment is rising and health-related economic inactivity remains stubbornly at a near record 2.8 million.

“Yet the OBR suggests that previously announced funding for extra employment support will only support up to 40,000 inactive people back into work by 2029/2030. And while a new ‘Youth Guarantee’ may help more young people to secure a job, there remains a significant risk that interventions will arrive too late to have an impact this Parliament.”