Families face £1,200 shortfall as bills overtake wages

Households are already grappling with higher costs, currently at £595 a week, just £1 below the average weekly income. These include bills for transportation, recreation, food and lodging, and bills.

Supply chain problems that started with the pandemic and were exacerbated by the war in Ukraine have pushed up prices in supermarkets, while rising interest rates are piling up mortgage bills.

According to the report, four in 10 people have been forced to use their savings to cover higher-than-normal expenses this year.

Middle-aged homeowners, who spend more on transport than other age groups as well as more on recreation, will be hit hardest – their weekly spend will rise to as much as £803 a week.

Nitesh Patel, from the Yorkshire Building Society, said: “Costs are rising significantly faster than revenues and will soon exceed total revenues. This level of inflation will mean that savings for those who have them will quickly be depleted if no action is taken.”

Elsewhere, Britain’s biggest charity for the elderly Age UK warned that two million elderly households will not be able to afford higher costs this year as there is “no headroom” on already stretched incomes.

Caroline Abrahams from the charity said more support was needed. “I’m amazed that the bad news on prices keeps rolling in but the government remains on its hands and we’re hearing many older people are surprised and disappointed too. There must be more that ministers can do to help,” she said.

A government spokesman said he acknowledged the pressure families are facing and said it had provided billions in support including a £150 tax refund to help with energy bills, as well as a £200 energy bill credit in October. It said it also introduced higher social security thresholds and frozen fuel taxes. Families face £1,200 shortfall as bills overtake wages

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