Monthly outgoings 'soar by 26%'
20 June 2008 12:04am Add commentsConsumers have seen their monthly outgoings soar by 26% during the past two years driven by higher housing and energy costs, research shows.
The amount people spend on bills and living costs has soared from an average of £945 in June 2006 to £1,281 now, according to insurer Combined Insurance.
Consumers are spending around a third more on rent and mortgages than they were two years ago, with rents rising by an average of 30% and mortgage repayments jumping by 33%.
At the same time households claim they are spending about 32% 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%.
Council tax has increased by 22% during the past two years to average £90 a month, while car running costs are 34% higher and spending on food has risen by 20%
Families with children have been particularly hard hit, with their average expenditure on child care soaring by 77% during the past two years, while other spending on children, such as clothes, has risen by 37%.
But there are areas where people have cut back on their spending, with households now spending about 8% less on insurance than they were in 2006, while telephone and broadband costs have fallen by 7%.
Nigel Brittle, director of Combined Insurance, said: "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."
not a bit of wonder things are getting tight[:(!]
