Household bills rise 10 times faster than incomes

Published by Adam Williams on 13 September 2017.
Last updated on 13 September 2017

Household bills rise 10 times faster than incomes

A decade on from the collapse of Northern Rock and the start of the financial crash, and households are still struggling against rising bills and low income growth.

Research by price comparison website uSwitch says household bills have risen 10 times faster than incomes have grown since the start of the financial crisis.

The cost of essential bills has rocketed by 20% in the last 10 years, with household incomes rising by just 2%.

A typical consumer now spends 59% more on gas than a decade ago while electricity costs have risen by 42%. Water bills have increased by 27% while food costs have grown 24%.

With incomes unable to keep pace with these rises, the typical person has disposable income of £7,253 compared to £10,889 in 2007 - a fall of 33%.

The report also shows that the average British consumer has £171 left over at the end of the month after paying for their essentials. However, 12% do not have anything left over at all.

'Homes are still feeling the squeeze'

Tom Lyon, money expert at uSwitch, says: “10 years since the Northern Rock crisis and homes are still feeling the squeeze.”

He adds: “The cost of running a household has climbed 20% against a meagre 2% increase in income. With one in 10 of us barely breaking even at the end of the month, it’s easy to see how homes are being plunged into debt simply trying to make ends meet.

“An almost 10% reduction in disposable income is life-changing for many families and shows how crucial it is that financial planning is a priority for everyone.”

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