Whitehaven News

UK’s ‘astronomical’ living costs for family of four

Last updated at 14:40, Friday, 02 December 2011

Families with two or more children need to take home nearly £25,000 a year just to get by amid “astronomical” living costs, research has claimed.

A study by Skipton Financial Services found families need to be earning £24,600 to meet bills for “essentials” like mortgage or rent, heating and water, filling up the car and getting to work, food, clothes, television and phone expenses and maintaining the home. It ignores any spending on “luxuries” such as takeaways, restaurant meals, night outs, weekends away or holidays.

Skipton Financial Services said its figure would wipe out the typical gross salary for a full-time worker of £26,200.

A basic rate taxpayer would need to earn £32,702 to take home the £24,600 needed to cover the essentials, the study said.

Andrew Barker, managing director of Skipton Financial Services, 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 five per cent.

“Inflation continues to hit families hard with the rising prices of food, petrol and energy bills.

“It is not surprising that mortgage interest is the number one spend, even though interest rates are at rock bottom levels.

“However, it is incredible to see that the cost of feeding the family is almost as expensive at almost £4,500 a year.”

The study of 2,000 families in the UK who have at least two children living with them found they spend a yearly average of £4,730 on mortgage payments, closely followed by food bills, which come to around £4,457.

Paying off credit card bills and loans piles on another £3,131 every year, while filling up the car with petrol adds to the financial strain, costing £2,452.

Average annual household expenses according to Skipton Financial Services: