Debt Advice Help and Support
Call us in confidence now, freephone 0800 083 1433
From a mobile it may be cheaper to call 01257 476415
Debt Solutions
Debt Free Direct Help you to manage your debt.
Our advisors provide confidential
debt advice and could help you to:
- Reduce your monthly repayments
- Freeze interest on serious debt
- End creditor chasing
 |
 |
The Rising Cost of Living Hits UK Families
Written by on 14 January, 2010A new survey from the Office for National Statistics (ONS) has revealed the average UK household weekly expenditure has increased.
The Living Costs and Food Survey by the Office of National Statistics provides a comprehensive breakdown of the spending habits of 6,000 families spread across the UK. It offers a source of data which helps with the formulation of government policy. As well as that, it helps determine the Retail Price Index (RPI) which is a fundamentally important measure of price inflation.
The latest report documents their findings on household expenditure for 2008. When compared to previous year’s figures, the results have shown that while household spending on clothes and shoes has reached new low, most expense categories increased spending levels. The cost of electricity, gas, transport, food and alcohol all increased during 2008, according to the report.
A record low of just £21.60 per week was spent on clothing and footwear during 2008, in comparison to the high of £23.90 in 2004/2005. It is thought that an increase in the number of discount retailers and the recession changing spending habits on essential goods and services have had an effect on these figures.
The report found that the greatest area of expenditure that families struggled with was the cost of public and private transportation. The weekly amount spent on travelling each week went up from £61.70 in 2007 to £63.40 in 2008 while the weekly amount of money used to buy new cars and vehicles went down from £22.80 in 2007 to £21.10 in 2008. The majority of this can be explained by the rising cost of petrol, diesel and motor oils.
The cost of gas and electricity increased from £17.20 to £18.90, which was largely caused by rising prices on the wholesale markets which were passed on to consumers by the big utility providers. Food and non-alcoholic drink costs also went up from £48.10 in 2007 to £50.70 in 2008.
In addition, the report found there was a major difference between the amount that families spent in rural and urban areas of the country. Those living rurally tended to have a higher level of expenditure than town and city residents. At the end of 2008, the amount spent in rural locations was £505.40 – a total £58.70 more than in the towns and cities. The difference can largely be accounted for by the higher cost of transportation, culture and miscellaneous recreational activities.
The reality for most families is that the majority of areas of social expenditure have increased. The median amount spent by each UK household was £471.00 in 2008, which is an increase of £10.80 when compared to 2007. This rise in the cost of living has taken place despite an over-time shortage, rising unemployment, falling interest rates and an unprecedented level of personal debt. Families feeling the strain of added costs in increasing debt are recommended to seek debt management advice on how to get their personal finances back under control.