According to latest figures from the Aviva Family Finances Report, UK families are spending £3,972 a year more compared to previous years on essential household costs.
The report looked into the financial circumstances of different UK families and investigated to see if there was an increase in essential costs such as food, utility bills and public transport fare.
Comparing the figures to previous year’s they highlighted that most essential costs have increased by £20-£30 which can add up over the year.
Due to the rise of essential household costs, spending on sports and leisure goods has dropped from 61% to 55% and spending on personal goods such as cosmetics and medicines has dropped from 81% to 76%. Families also admitted to cutting back on motoring costs such as fuel and maintenance to help to reduce their outgoings.
The survey also showed that despite the increase in essential costs families are making more of an effort to save money compared to a couple of years ago.
Louise Colley, head of protection sales and marketing says: “This latest report reveals a mixed bag of fortunes for UK families as they face higher living costs set against relatively stagnant incomes. However, it’s promising to see that families are adjusting their spending habits to take account of these changes and good news that these growing expenses have not prevented families increasing their debt repayments or savings.
“It’s also no surprise to find that children have a significant impact on family incomes, so it’s reassuring that many couples planning a family are getting their house in order by building their savings or living with parents to cut costs – before they start out on the next stage of life with children.”
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By Amanda Bainbridge