Money worries created by rising cost of living?

British households could be facing greater money worries, as research has indicated that many people are struggling to keep up with rising costs.

According to a study by Markit and YouGov, growth in incomes is being outpaced by increases in prices for goods and services.

Economist at Markit Tim Moore observed that many families are being stretched by the situation, while 60 per cent of respondents said general costs have gone up in February.

And one-third stated that they are pessimistic about their prospects for the next 12 months.

Mr Moore suggested that the difficulties could result in the delay of the wider economic recovery, adding: “February’s survey highlights that UK household finances are still deteriorating, despite the recession officially ending last year.”

Meanwhile, research by LV= has revealed an increase in the amount of money needed to raise a child to the age of 21, with the figure now standing at over £200,000.

By Andy Mackay