UK families ‘set for fresh fall in real incomes’

British families will be at least £200 worse off next year as household bills continue to rise, a new survey has concluded.

A study by investment bank Morgan Stanley has indicated the typical household will continue to be hit by rising costs as motor fuel, domestic energy and mortgages all rise over the course of the next year.

It has calculated this year will see a £1.3 billion drop in real disposable income – about £50 per family – and a further £5 billion fall in 2013.

This could be a particularly painful situation for those in debt who are struggling to manage their repayments already.

Concern over energy bills has risen after Scottish and Southern Energy recently announced a nine per cent rise in both electricity and gas prices from October, a move other energy firms might emulate.

A Money Supermarket survey published this month found a fifth of adults feel they can no longer cope with any further squeezes on their incomes.

Posted by Paul Thacker