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
UK gas supplies dangerously low
It has been revealed that the UK has the equivalent of just eight days worth of gas usage left in storage, as a back up against potential problems with traditional gas supplies. While there is no chance that the UK will run out of gas it is the fact that even backup plans appear to be struggling which has caught the attention of the Conservative party. Yesterday we saw the UK government advisin...
Read MoreUK government to extend car scrappage scheme
The BBC has learnt that the UK government will this week announce a further extension of the popular car scrappage scheme which compensates motorists for scrapping their old uneconomical vehicles in favour of new eco-friendly models. While the scheme looks likely to be extended from the end of February to the end of March the government is unlikely to inject any more money over and above the £400...
Read MoreOvercharged Brits urged to study household bills
Britons have been urged to scrutinise their household bills, in the wake of a study showing that millions of consumers have been overcharged for services. In a poll conducted by price comparison site Moneysupermarket.com, 34 per cent of respondents said they have found a mistake in their bill over the last 12 months.However, despite the evidence of errors in their billing, 50 per cent are failing...
Read MoreConservative government would reduce the power of supermarkets
The Conservative Party has confirmed it would bring in a so-called "supermarkets tsar" to oversee the supermarket sector if it is successful at the next general election. The idea would be to force supermarkets to pay a fair price for produce from suppliers and indeed keep a very close eye on their power and influence not only in the retail market but also on local economies. For many years the...
Read MoreUK government offers incentives for renewable energy supply
The UK government is forecasting that one in 10 UK homes will have solar panels or some other form of renewable energy source attached to their roofs in the future. Indeed the government is set to introduce a scheme in April 2011 which will see UK households earning up to £900 a year by installing solar panels on their roofs and generating electricity which will be directed to the National Grid....
Read More