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Living costs soar as families need £25,000 a year to get by

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A study has revealed families with two or more children living at home need to bring in £24,600 a year just to meet all of their outgoings.

The sum included essential costs such as mortgage payments or rent, food, television and phone expenses.

Holidays, nights out and takeaways were excluded meaning luxuries would have to be funded separately. 

The study was carried out by Skipton Financial Services based on 2,000 families with at least two children living with them revealing the reality of the ongoing costs of living.

A basic taxpayer would need to earn £32,702 to take home the £24,600 needed to cover bills.

Mortgage payments costing £4,730 a year came out as the highest outgoing, the weekly food shop was the second highest averaging around £86 a week totalling £4,457 a year,  followed by credit cards and loans costing  £3,131 and petrol costing £2,452 for the year.

The study also found that 40 per cent of people spend most of their cash on things they want rather than saving for the future, one in three admitted to not having a savings account.

Andrew Barker, managing director of Skipton Financial Service said: “It’s frightening how everything adds up. 

“The cost of living is astronomical and now more than ever people have to be on the ball with their expenditure and to keep on top of things, particularly at a time where inflation is riding well above target at 5 per cent.”

A massive difference in weekly essentials has risen over recent years making it difficult for families to make ends meet.

With prices continuing to rise it is making the all important luxuries harder for families to save for, forcing them to stick to a budget.

Barker offered some help to families who are planning to budget he added: “With many sectors currently suffering a pay freeze, it is difficult to increase your monthly incomings so it is even more important to be ahead of the game with your expenditure.

“Get your bank statements and check all direct debits and standing orders, it is vital that you are aware how much is going out of your account and you may even spot things like magazine subscriptions or gym memberships that are no longer needed or no longer essential spends."

With Christmas coming up and the added pressure of buying presents, the new figures will be a harsh reality of how much it costs to run a family home.

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By Amanda Bainbridge