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Household Bills rise at four times the rate of Earnings

The cost of living has risen at four times the rate of incomes since the start of the economic downturn according to the Office for National Statistics (ONS). This means that those who either rent or own a home, and pay bills for amenities, are significantly worse-off than they were before the recession started in 2008.

Over the last five years, household bills have risen by an average of 25pc, while the average national wage has risen by just 6pc, according the figures released by ONS.

The fact that the cost of living has risen at four times the rate of wages has meant that the purchasing power of wages is now back down to the same level as 2003. Of the 1000 people that were questioned in the study, nearly 50pc of the respondents admitted they had not received a pay rise so far this year, and more than one in three people have received a wage freeze for 12 months or more.

There is also a great deal of pessimism directed towards next week’s budget, with 55pc of those questioned saying they think the Budget will leave them in a financially worse position.

Energy prices were hiked significantly by major suppliers in the last quarter of 2012, and the price of water has also risen in 2013, piling further pressure on households.

If you have any questions related to this article, or any other financial queries, please contact one of our advisors who will be happy to help.

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