Quarter of households have reached financial 'tipping point'Wednesday, 11 May 2011 09:57
Almost a quarter of UK consumers say they have already reached their ‘affordability tipping point' and can no longer make ends meet, according to research by moneysupermarket.com.
The soaring cost of petrol has had the biggest impact on household spending and budgeting over the past year, followed by rising food prices and utility bills, the comparison site’s survey found.
And in the last six months alone, UK adults’ weekly expenses have risen by an average of £54, leaving them with £247 a month to live on after all bills and outgoings are paid, the study revealed.
But the website said disposable income is forecast to fall by a further £780 per cent this year, so finances could be stretched even further.
Meanwhile, 61 per cent of the 2,100 adults polled said they have not had any form of salary increase in the past year.
Clare Francis, personal finance expert at moneysupermarket.com, said there are still small steps people can take that will help save those vital pennies.
She said: “Sitting down and looking at all of your outgoings, and shopping around or using a comparison website to make sure you are on the best product for your individual needs, is a great way of giving yourself a pay rise.”