Rising costs sees Brits worse off

A study for Ernst & Young has concluded that the average household has ten per cent less disposable income than in 2001 due to rising debt, bills and taxes.

“Increases in average mortgage payments, coupled with rising fuel prices and massive hikes in utility prices, continue to squeeze the typical UK household,” said Tim Sleep, director of retail at Ernst & Young.

He believes that people are now “shackled” by these increases in monthly outgoings which have left households with £82 per month less in disposable income than five years ago.

With debt payments alone £20 higher on average than in 2001, more and more Britons are seeing themselves worse off as the cost of living increases.