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Weekly Budget For The Average British Family Is £174

by Jim ONeil on December 31, 2010

in Personal Finance News

Compared to one short year ago, the average British family has £6 less per week to spend. Research indicates that wage increases have not kept pace with rising living costs. This can make it difficult for large families to make ends meet and there is often nowhere from which to cut the expenses, leaving them in a difficult situation.

November marked the eleventh month in a household spending power decline. In November, basic goods and services cost 3.5 percent more than just one year earlier. A study was recently conducted on behalf of Asda by the Centre for Economics and Business Research, a think tank. Among the results was the fact that while the average family had £180 to spend per week last November, it had only £174 available for weekly spending this November.

As family spending power continued to decline in November, gasoline costs rose by nearly ten percent. Economists agree that inflation remains high and prices of commodities are raising the cost of living. To make things worse, the labor market has failed to make a convincing recovery. This results in income growth that has not kept up with rising costs of goods and services.

Asda Chief Executive Andy Clarke stated that 2010 was a challenging year for British families. He does not believe the situation will get better in 2011, due to the VAT increase. The government uses the Consumer Price Index to measure inflation. This Index rose from 3.2 percent in October to 3.3 percent in November.

Increasing clothing and food prices are responsible for the rising Consumer Price Index. In the next few weeks, information will become available that reflects the impact holiday prices had on this index. However, any drop may only be temporary as 2011 stands to be another difficult year for families in Britain.

Ads_Smith

"The average Brit spends 3 hours a week cleaning up other peoples mess." haha oh if only!

Helen

I would pay £25 for an evening, 6pm to midnight. Anymore and its not worth going out.

MicronesiaNewsD

Asda Index shows families £60 a month worse off than in 2010: The squeeze left the average British family …

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