British families have suffered the worst deterioration in their spending power in 12 months because of a sharp decline in wage growth, it is reported.
After paying essential bills, the average household now has just £155 left over in spare cash each week. Families are now £1 a week worse off than the same month last year and have £10 a week less than they did during a peak in February 2010.
Weak income growth was the "primary driver" behind people's budgets taking a turn for the worse, with wage growth falling at the fastest rate since the start of the economic crisis.
ment prospects have weakened and average pay rose to just 0.8% over the year to April, marking the lowest rise since comparable figures began in 2001. The cost of utilities such as electricity and gas was also a strong factor behind the decline in people's budgets, with gas prices up 8.3% year-on-year, marking the highest rate since August 2012.
Rob Habron, Economist at the Centre for Economics and Business Research (Cebr), which compiles the report, said: "...ongoing very slow wage growth and high unemployment are preventing any real gains to discretionary spending power. The squeeze on household incomes has returned in 2013 despite the gradually improving economy."
After paying essential bills, the average household now has just £155 left over in spare cash each week. Families are now £1 a week worse off than the same month last year and have £10 a week less than they did during a peak in February 2010.
Weak income growth was the "primary driver" behind people's budgets taking a turn for the worse, with wage growth falling at the fastest rate since the start of the economic crisis.
ment prospects have weakened and average pay rose to just 0.8% over the year to April, marking the lowest rise since comparable figures began in 2001. The cost of utilities such as electricity and gas was also a strong factor behind the decline in people's budgets, with gas prices up 8.3% year-on-year, marking the highest rate since August 2012.
Rob Habron, Economist at the Centre for Economics and Business Research (Cebr), which compiles the report, said: "...ongoing very slow wage growth and high unemployment are preventing any real gains to discretionary spending power. The squeeze on household incomes has returned in 2013 despite the gradually improving economy."
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