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Cost of Living Hits Families Hard
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(27-03-08) - According to research commissioned by a leading UK supermarket, families are £30 a month worse off than they were this time last year. writes Dan Drage dan.drage@consumerchoices.co.uk |
The survey, commissioned by Asda, found that despite bringing home around £17 a week more in earnings year on year, families have experienced a £24 jump in the cost of weekly essentials such as food, transport and fuel.
As a result, individuals reported an average of only £133 a week disposable income to spend on leisure and entertainment, £7 a week less than February 2007.
Overall, the average household had an income, including money from investments and benefits, of £655 a week.
The fall in disposable income was driven by a 6.2% jump in transport costs during the past year, with petrol soaring by 20.3%. Taxation remained high with income tax and national insurance payments increasing by 3.7% during the past year.
Chris Eagle, Commercial Manager at CreditChoices, is on a cost cutting exercise:
‘There are a number of ways that you can reduce expenditure during these difficult times. For starters, if you’re on a standard energy tariff, switch to a cheaper online alternative, and if you pay by cash or cheque, set up a direct debit to make further savings’
He continues:
‘Make interest-free repayments on your credit card by switching to a 0% balance transfer card, and consider parking your disposable income in a cash ISA for tax breaks on your savings.’
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