You are here: Home - Credit Cards & Loans -

Transport costs biggest drain on household budgets

0
Written by:
27/03/2013
Basic living costs are eating up more than half of consumers' monthly spend, with transport now the largest expense for Brits.

Spending on recreation and culture has fallen over the past 12 months as households struggle with the rising costs of essential goods and services, research by Halifax has found.

Anthony Warrington, director, personal current accounts at Halifax, said: “Everyone has different priorities when it comes to spending, but the rising cost of basic goods and services has left people with less to spend each month once essentials like food and shelter have been accounted for.

This comes as households face further financial strain as the cost of energy bills hit new highs.

From Monday, the average water bill is set to increase 3.5% after regulator Ofwat’s water price hike comes into effect. This follows a winter which saw all of the ‘Big 6’ energy suppliers increase their prices.

Meanwhile, the Citizens Advice Bureau has hit back at claims that households are on average better off than they would have been in the absence of the Government’s energy and climate change policies.

A report from the Department of Energy and Climate Change (DECC) said  householders are paying on average £64 or 5% less for their gas and electricity bills as a result of Government energy policies compared to if no policies had existed, and in 2020 the net saving against the do-nothing scenario will reach £166 or 11%.

Gillian Guy, chief executive of Citizens Advice, said: “The Government’s claim to providing a cushion between energy prices and household bills is unlikely to offer much comfort to the tens of thousands of people racking up debts because they can’t afford to heat their homes or keep the lights on.

“Household fuel bills are going up and bureaux see too many families forced to make the decision between heating and eating.

“The poorest households are picking up the tab for the Government’s energy projects as costs are added to everyone’s energy bills.

“If the Government is going to continue down this regressive road they need to make sure that the fuel poor benefit by ring fencing more of the Energy Company Obligation for them.

“Energy companies also need to be quicker to pass on savings to customers when wholesale prices fall.”

Tag Box

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.

Could you save money with a social broadband tariff?

Two-thirds of low-income households are unaware they could be saving on broadband, according to Uswitch.

How to help others and donate to food banks this winter

This winter is expected to be the most challenging yet for the food bank network as soaring costs push more pe...

Your rights for refunds if travel is affected by strikes

There have been a wave of strikes this year across many different industries, and more are planned over Christ...

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.

DIY investors: 10 common mistakes to avoid

For those without the help and experience of an adviser, here are 10 common DIY investor mistakes to avoid.

Mortgage down-valuations: Tips to avoid pulling out of a house sale

Down-valuations are on the rise. So, what does it mean for home buyers, and what can you do?

Five tips for surviving a bear market mauling

The S&P 500 has slipped into bear market territory and for UK investors, the FTSE 250 is also on the edge. Her...

Money Tips of the Week