You are here: Home - Household Bills - News -

Two-thirds of households saw flat or falling incomes over the past 12 months

0
Written by:
27/03/2018
Only 35% of working consumers report an increase in their household income over the last 12 months, says the latest Lloyds Bank Spending Power Report.

The Ipsos MORI survey of over 2,000 bank account holders in the UK, shows 36% of working households have seen no change in their household’s income, while 17% of consumers have seen a decrease in income.

The hardest hit are those working in the public sector (19%), earning up to £34,999 (19%), or above the age of 35 (19%). They may receive some respite following the announcement of a new pay deal for NHS workers this week.

Household income has come under pressure from rising living costs over the period. Lloyds Bank analysis of its own customer account data has found 3% year-on-year growth in consumers’ essential spending (data to February). The group reported a rise in gas and electricity spending of over 5% year-on-year, the seventh consecutive month of spending increase.

In spite of some weakening of inflation in February’s statistics, those surveyed are increasingly negative compared to last year about inflation (up 6 percentage points) and the country’s financial situation (up 5 percentage points).

The Lloyds Bank research also shows homeowners at a disadvantage over renters. Homeowners have experienced larger decreases in household income over the past 12 months. Of those who claim their household income has deteriorated, nearly 1 in 4 (23%) homeowners believe it has reduced by more than 20%, whereas only 16% of renters report reductions of the same proportion.

Robin Bulloch, managing director of Lloyds Bank, said: “While consumers will have been pleased to see the gap closing between inflation and wage growth in February, our research shows that UK households still feel they have been under real financial pressure in 2018. Inflation remains high, and people are having to make their money go further as a result of muted household income growth.”

 

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

Are you a first-time buyer looking for a mortgage?

Look no further, get the help you need by searching for your perfect mortgage

Five ways to get on the property ladder without the Bank of Mum and Dad

A report suggests the Bank of Mum and Dad is running low on funds. Fortunately, there are other options for st...

The essential Your Money guide to the April 2018 tax changes

As we head into the 2018/19 tax year, a number of key changes take place to existing policies while some new i...

A guide to switching energy provider

All you need to know about switching from one energy supplier to another.

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

Having a baby and your finances: seven top tips

We’re guessing the Duchess of Cambridge won’t be fretting about maternity pay or whether she’ll still be...

Protecting family wealth: 10 tips for cutting inheritance tax

Inheritance tax - sometimes known as 'death tax' - can cause even more heartache for bereaved families. But th...

Travel insurance: Five tips to ensure a successful claim

Ahead of your summer holiday, it’s important to make sure you have the right level of travel cover or you co...

YourMoney.com Awards 2018

Now in their 21st year, our awards recognise the companies offering the best products and services to consumers

Money Tips of the Week

Read previous post:
2305772-energy-bills-gas-1
Iresa banned from taking on new customers

Energy regulator Ofgem has banned small energy firm Iresa from accepting new customers until it clears a backlog of complaints.

Close