Spending More - Earning Less

The average household bill in Britain is now higher than the typical salary, it has emerged.

Households spend £1,542 every month on utility bills, rent or mortgage payments, the weekly shop and other bills. It equates to annual bill of £24,100.
However, the typical Briton earns an annual salary of £23,244, which after tax only leaves them with £1,497 each month.
It means the average household is left with no money to pay for any other living expenses, such as petrol and clothing.

A spokesman for Confused.com said: “Times have been tough for a few years and people are really noticing the difference in their bank balances. With many people still feeling the effects of the recession, paying the bills is yet another money worry. And unfortunately, essentials such as food and rent or mortgage payments have gone up and up over the past 12 months. Things may only become harder..."

Charities warned that the squeeze on household budgets was only worsen despite the end of the recession.
Frances Walker, a spokesman for the Consumer Credit Counselling Service, said: “Increasingly not only do people not have enough money to repay their debts but they don’t have enough money to pay their basic household expenses. Although debt levels are down, household incomes are lower with more people being forced to work less hours and part time despite wanting to work full time, and we know the situation is only going to get worse over the next year.”

Malcolm Tyndall, of the charity Elizabeth Finn Care, said: “We have seen first hand that over the past 18 months there has been a substantial rise in the cost of living, but that few people have had their salary rise at anything like that rate. Huge rises in food, fuel and household utilities have left many people struggling financially."

The number of part-time workers rose by 148,000 in the quarter to hit 7.82 million, the highest level since records began in 1992, according to the Office for National Statistics.