Energy Bills 'Hit Family Incomes'

29/12/11

By Dan Smith

The financial strain placed on family budgets this year has left them £15 a week worse off, according to research from supermarket Asda.
The firm's Income Tracker shows that the disposable income received by the average UK family fell by 8.4% last month compared with the same period of 2010.Families now have an average disposable weekly income of just £161, the study found.

Utility costs have taken their toll on the finances of UK families in recent weeks, Asda's research indicated, with electricity prices 15.5% higher than they were in November 2010 and gas prices 25.3% higher.
Despite these pressures, the Centre for Economics and Business Research suggests inflation rises are likely to slow down in the months to come.

Charles Davis, managing economist at the centre, which compiled the Income Tracker report, stated: "The rising cost of living is expected to slow further in the coming months, taking some pressure off, but household budgets are likely to be constrained for some time to come."