Drop in Household Income

According to a study by the centre for Economics and Business Research (CEBR), most families’ disposable income has decreased to £8 a week over the last 12 months as there was so much pressure on them to overcome from debts.

The CEBR report, which was commissioned by supermarket giant Asda, found that the average family income was around £633 a week which is around 3.6% higher than May last year. However, it reveals over that time, taxes and National Insurance had risen by around 6.5 per cent.

The report revealed that households are spending much of their income on transport, food, clothing, accommodation, utility bills etc. and then found itself with just £131 a week, which was a 6% drop since May 2007.

It noted that “Due to increase rate of inflation the prices of gas, electricity and transport all risen considerably over the last years by 6 per cent.”

Recent government figures reported that the knock on effects of higher fuel and food bills, with annual inflation at an 11 year high.

The data showed that in May, the consumer price index (CPI) measured the inflation rate has increased to 3.3 per cent, which is higher than since CPI started.

The retail prices index which is used to measure the inflation rate has increased to 4.3%.

This news provided by Info About Loans

News Categories