Financial pinch ‘getting tighter’

The financial pinch currently being put on the pockets of people across the UK is getting increasingly tighter, new research has suggested.

Figures compiled by Ernst & Young have revealed that Britons are on average 15 per cent worse off now than was the case five years ago.

Millions of people are weighed down by a serious debt management burden and the cost of living has risen significantly in recent months.

After paying all of their fixed monthly outgoings, the typical British household has roughly £770 left to spend on a monthly basis, compared to just over £900 in 2003.

“Many UK consumer segments are clearly feeling the pinch as big rises in household costs are far outstripping relatively modest wage inflation,” said Ernst & Young’s retail director Jason Gordon.

According to Credit Action, the overall personal debt mountain in the UK increases by almost £1 million every five minutes.

By Frank Charlton