20 June 2008
Higher housing and energy costs over the past two years have meant consumers have seen their monthly outgoings soar by more than a quarter.
The amount people spend on bills and living costs has risen by 26 per cent - from an average of £945 in June 2006 to £1,281 now, according to insurer Combined Insurance.
Householders are spending around a third more on rent and mortgages than they were two years ago, with rents rising by an average of 30 per cent and mortgage repayments jumping by 33 per cent.
At the same time households claim they are spending about 32 per cent more on gas and electricity, at an average of £90 a month, while other everyday bills such as television subscriptions and water rates have risen by 30 per cent.
The YouGov survey of almost 2,000 people showed that council tax has increased by 22 per cent during the past two years to average £90 a month, while car running costs are 34 per cent higher and spending on food has risen by 20 per cent.
Families with children have been particularly hard hit, with their average expenditure on child care soaring by 77 per cent during the past two years, while other spending on children, such as clothes, has risen by 37 per cent.
The research did also show that there are areas where people have cut back on their outgoings, with households now spending about 8 per cent less on insurance than they were in 2006, while telephone and broadband costs have fallen by 7 per cent.
"The many cost of living hikes are taking their toll on the monthly budget and many Britons are living on the edge with their finances," said Nigel Brittle, director of Combined Insurance.
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