Cost of living rises as families need £25k to break even
The average family is seeing its spending power diminished while needing £24,600 just to pay for life's essentials.
Two new surveys have highlighted the cost of living in ‘Austerity Britain’.
Asda’s latest Income Tracker for October claims we’re £13 a week worse off than we were a year ago.
Meanwhile, a report by Skipton Financial Services says the average family with two children needs to earn £24,600 a year just to break even.
What it all costs
Skipton calculated the cost of everyday essentials as follows:
- mortgage or rent (£4,730 a year)
- running a car (£3,400.76)
- commuting costs (£2,455.44)
- utility bills (£1,282)
- council tax (£1,217)
- food, toiletries and other household essentials (£4,950.20)
- life and home insurance (£801.36)
- clothes (£666.12)
- landline, broadband and mobile phone (£525.24)
- home maintenance (£566.06)
The report also found that the average family was spending £3,131.64 a year paying off loans and credit cards and £476.28 on digital TV subscriptions.
And this is before any spending on going out, holidays or luxury items.
Family spending power decreases
The Asda Income Tracker says the average family now has £164 of weekly disposable income, 7.1% less than at this time last year. It calculates that gas prices have gone up by 24.1% in the past year, with electricity prices rising by 14.9%.
Meanwhile, the cost of unleaded petrol has risen by 14.3% over the last 12 months, with diesel increasing by 15.1%.
There are plenty of ways that you can cut your household's outgoings each month. By shopping around for a new deal on your broadband, phone or TV deal then you can save a small fortune, while there are simple ways to save money on the road, and reduce your living costs generally.