7:50am Friday 20th June 2008
Consumers have seen their monthly outgoings soar by 26 per cent during the past two years driven by higher housing and energy costs, research has shown.
The amount people spend on bills and living costs has soared from an average of £945 in June 2006 to £1,281 now, according to insurer Combined Insurance.
Consumers are spending around a third more on rent and mortgages than they were two years ago, with rents rising by an average of 30 per cent and mortgage repayments jumping by 33 per cent.
At the same time households claim they are spending about 32 per cent more on gas and electricity at an average of £90 a month, while other everyday bills such as television subscriptions and water rates have risen by 30 per cent.
Council tax has increased by 22 per cent during the past two years to average £90 a month, while car running costs are 34 per cent higher and spending on food has risen by 20 per cent.
Families with children have been particularly hard hit, with their average expenditure on child care soaring by 77 per cent during the past two years, while other spending on children, such as clothes, has risen by 37 per cent.
But there are areas where people have cut back on their spending, with households now spending about 8 per cent less on insurance than they were in 2006, while telephone and broadband costs have fallen by 7 per cent.
Nigel Brittle, director of Combined Insurance, said: "The many cost of living hikes are taking their toll on the monthly budget and many Britons are living on the edge with their finances."
YouGov questioned 1,983 people during May.
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