Recent economic reports suggest that rising inflation has significantly squeezed household budgets. Despite a period of historically resilient spending, the country's savings ratio has started to climb as households prepare for leaner times. A contraction in real disposable income has dampening effects on consumer confidence, leading families to postpone major purchases of durable goods. Policy proposals to stimulate economic activity include a temporary cut to employee national insurance contributions, which proponents argue will immediately boost disposable income and jump-start consumption.
Define the term 'disposable income' (Extract H).
