Rising cost of living squeezes family disposable income
It has been revealed that between 2007, when the credit crunch began, and 2008 the cost of living for a family in the UK increased from £459 a week to £471 a week. This is a 2.6% increase despite the fact that unemployment has been rising, incomes have been falling and more and more families are falling into the debt trap. So what is behind the rise in the cost of living in the UK?
There is no doubt that the rising cost of fuel, energy bills and food have led to the increase in the cost of living at a time when fewer and fewer families in the UK can afford these extra charges. While figures for 2009 are not yet available it is thought that the cost of living would have risen yet again even though for much of the year inflation was near zero or negative, depending upon which measurement you use. Energy bills continue to rise, food prices in general are moving higher and the cost of fuel is as volatile now as it has been in recent years.
It will take some time for wages to catch up with the ever increasing cost of living especially when you consider that unemployment has not yet topped-out and many companies are still looking to cut costs from their baseline.
Share this..
Related stories
Northern Rock chief executive took home £1.3 million last year
Gary Hoffman, the chief executive of Northern, took home £1.3 million last year placing him amongst the highest-paid civil servants in the UK. Details of his remuneration package were revealed in the report and accounts for the Northern Rock "bad bank" operation which was separated from the more profitable operations of the original Northern Rock. Even though the report and accounts also show...
Read MoreNHS Funding Receives An Unexpected Boost
News that the UK government has agreed a new pricing structure for the sale of drugs supplied to the NHS has been welcomed by many in the industry. The move, which see a 5% reduction in drug charges through the Pharmaceutical Price Regulation Scheme (PPRS), will benefit the NHS to the tune of over £500 million a year. But who will pay in the end?
While the structure of the new de...
Premier Inn launches the credit crunch honeymoon
In a sign of the times the Premier Inn hotel chain has launched a credit crunch honeymoon giving couples the chance of two nights away with extras for just £58. The offer is available until the end of September in 10 hotels across the chain and is open to couples who have been married or involved in a civil partnership agreement since the end of July.
Upon their arrival at the Prem...
Consumers set to pay for electricity network upgrade
Despite the fact that UK consumers have seen electricity bills in the UK rise significantly over the last few years, Ofgem, the energy regulator, has today revealed that electricity bills will rise by 5% every year until 2015. The move will raise around £6.5 billion which will be used to repair the UK electricity network which has been starved of investment in some areas. But is this really fair?...
Read More'Life insurance is vital for the self-employed'
Life insurance is crucial for those who are self-employed and those who are considering going into business for themselves, life insurance expert has claimed. According to Nick Kirwan of the Association of British Insurers (ABI), Britons are "hugely underinsured for life cover" with up to one in three people having no life insurance. The ABI also estimates that a further one in three have failed t...
Read More