Average UK Home Bills Higher Than Wages

The average household bill in Britain is now higher than the typical salary, it has emerged.


By Myra Butterworth, Personal Finance Correspondent
Published: 6:40PM BST 21 Jul 2010
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Average household bill higher than average salary Photo: GETTY

Households spend £1,542 every month on utility bills, rent or mortgage payments, the weekly shop and other bills. It equates to annual bill of £24,100.

However, the typical Briton earns an annual salary of £23,244, which after tax only leaves them with £1,497 each month.

It means the average household is left with no money to pay for any other living expenses, such as petrol and clothing.

Household bills have risen sharply by almost £650 in the past year, up from £17,860, with the cost of car insurance, mobile phones, and rent or mortgage among the biggest increases, according to the research by price comparison website Confused.com.

A spokesman for Confused.com said: “Times have been tough for a few years and people are really noticing the difference in their bank balances. With many people still feeling the effects of the recession, paying the bills is yet another money worry. And unfortunately, essentials such as food and rent or mortgage payments have gone up and up over the past 12 months.

“Things may only become harder as the new Government gets to grips with the country’s financial situation and are forced to raise taxes or cut benefits.

Car insurance has seen the biggest jump over the past 12 months, going up £369.60 to an average of £1,460.04 per year.

However, the survey of 3,000 consumers suggested the amount we spend on utilities and the internet has gone down.

Bills for gas, electric and water are down £22.32 on last year to £1,145.16, while internet costs have dropped £15.36 to £188.64 a year.

Charities warned that the squeeze on household budgets was only worsen despite the end of the recession.

Frances Walker, a spokesman for the Consumer Credit Counselling Service, said: “Increasingly not only do people not have enough money to repay their debts but they don’t have enough money to pay their basic household expenses. Although debt levels are down, household incomes are lower with more people being forced to work less hours and part time despite wanting to work full time, and we know the situation is only going to get worse over the next year.â€