New statistics from Asda’s Income Tracker shows UK families are £14 a week worse off compared to last year. This represents the biggest decline since the tracker began in January 2007.
An expensive year
The squeeze left the average UK family with £162 of weekly disposable income – 7.9% down from last year, measured between August 2010 and August 2011.
The findings come following sharp increases inflation, with the consumer price index (CPI) up to 4.5% in August from 4.4% and the retail price index (RPI) up to 5.2% from 5%.
Less to spend
The report also revealed that nine in ten of people say things are tougher now than they were this time last year, with utilities and fuel costs the biggest pressure on family disposable income.
The recent Pulse of the Nation Survey, carried out last Friday also found:
• Almost four out of five people said the Government must take action now to put money back into people’s hands
• When asked what measures they’d like to see, two in five said a freeze on household energy bills topped the list
• Over a quarter said a cut in fuel duty would ease the cost of getting around
• Just under a quarter stated a reduction in the standard rate of VAT from 20% to 17.5% would help balance their books
• And 11% said they would prefer a one-off National Insurance rebate
For advice on how to save money on food, heating, motoring, and lots more visit the Bills and Budgeting section of our site. Or if you’re looking for ways to make more out of your money, see our best rate cash ISA and best-rate saving accounts guides.
- Rather than cutting back, make more by reading our guide to making cash online
- Your home can also be useful, see our guide to making money from your home
- For cheap treats like gifts and holidays give group-buying a try