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as inflation. 15 The OBR forecasts imply that in 2015 living standards, as measured by RHDI percapita, will be higher than in 2010 or any previous year and will continue to grow strongly everyyear for the rest of the forecast period. The OBR forecasts that in 2015 RHDI per capita will growat its fastest rate for 14 years at 3.1%. This will mean that on average households will be £1,100better off in 2015 than 2014 and around £900 better off in 2015 than in 2010. 16 The Institutefor Fiscal Studies (IFS) have nowcast households below average income (HBAI) to 2014-15, andon current trends median income in 2015-16 is likely to be higher than in 2010-11. 171.13 GDP per capita is forecast to be over 5% higher in 2015 than in 2010. Chart 1.3 showsthe projected path of GDP per capita and RHDI per capita.Chart 1.3: Different measures of living standards120RHDI per capita and GDP per capita, level indexed to 100 at 201011511010510095902010201120122013201420152016201720182019RHDI per capitaOBR forecast GDP per capita OBR forecastSource: Office for National Statistics, Office for Budget Responsibility.Productivity1.14 Poor productivity growth has been a long-term issue affecting the UK economy. Since thefinancial crisis UK productivity performance has been weak. Factors related to the nature of thefinancial crisis are likely to be having a persistent impact on the level of productivity.1.15 The latest data has been mixed and shows output per hour productivity grew by 0.6% andoutput per worker productivity grew by 0.4% in Q3 2014 on the previous quarter. Productivity inthe public sector has been increasing steadily since the financial crisis. Between 2010 and 2012public sector productivity increased by a total of 3.7%. 18 The OBR forecasts productivity growthpicking up to 0.9% in 2015, 2.1% in 2016 and 2.5% in 2017.1.16 The UK is not alone in having weak productivity growth recently and the relationshipbetween pre and post-crisis productivity in the UK is qualitatively similar to that of other15The UK Statistics Authority (UKSA) recently welcomed “Greater use of the estimates of Household DisposableIncome (a component of the ONS National Accounts) to give insight into household income at both the aggregateand individual level”. Monitoring Review 1/2015 – ‘The Coherence and Accessibility of Official Statistics on Incomeand Earnings’, UKSA, February 2015.16HM Treasury calculations based on March 2015 OBR forecasts for Real Household Disposable Income (RHDI), ONShousehold statistics and DCLG household projections.17‘Living standards: recent trends and future challenges’, Institute for Fiscal Studies (IFS), March 2015.18‘Public Service Productivity Estimates: Total Public Services, 2012’, ONS, February 2015.Budget 201513