Friday July 4, 11:15 AM
'Families Are Now 15% Worse Off'
By Sky News
People across the UK are 15% worse off than they were five years ago following the recent big rises in the cost of living, new research has shown. After paying tax and meeting monthly household bills, the average family now has less than 20%
of their gross income left, compared with 28% in 2003/2004, according to accountancy firm Ernst & Young.
It says households are left with an average of only £772.79 to spend each month after paying all of their fixed monthly outgoings - down from £909.84 in 2003.
It adds that the squeeze on people's disposable income has accelerated rapidly over the past year.
Ernst & Young found that fixed monthly household costs had soared by nearly 45% during the past five years, to take up 53% of people's total pay.
Homeowners are shelling out 78% more in mortgage repayments than in 2003/2004 at an average of £735 a month, due to a combination of higher interest rates and bigger mortgages.
Monthly energy bills have leapt by 110% during the period to average £95.80, while petrol costs for the typical family are 29% higher at £193.61.
Other costs have also increased, with unsecured debt repayments, such as on loans, credit cards and overdrafts, rising by 44% since 2003/2004 to take up £114.81 of people's income.
Meanwhile, council tax is 25% higher at an average of around £114.50.
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