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Why Your Cash Really Is Going Up In Smoke: Alarming New Figures Reveal How Families' Biggest Cost Is Now Heating And Looking After Their Homes

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http://www.dailymail.co.uk/news/article-2521821/Families-spending-revealed-Biggest-cost-heating-looking-homes.html

Average family spending for 2012 revealed by Office for National Statistics

Energy bills and house maintenance overtakes transport as biggest cost

Spending on motoring falls as drivers cut journeys to save petrol

Brits increase spending on clothes and shoes despite falls in prices

Richest homes spend £1065.60 a week compared to poorest's £189.30

Energy and housing bills have become the biggest outgoing for families in the UK for first time, new figures show.

In 2012 the average household spent a total of £489-a-week, down from £526 in real terms a decade ago, as the squeeze of incomes triggered by the recession goes on.

But £68 went on household bills for things like fuel and electricity, overtaking transport as the single largest cost.

article-2521821-1A06048A00000578-469_634x564.jpg

Just confirms what post people on here think that housing eats up most in economic costs.

Surely the point of increasing petrol prices was to stop pointless journeys.

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Just confirms what post people on here think that housing eats up most in economic costs.

Surely the point of increasing petrol prices was to stop pointless journeys.

Yes, that was the "reason" *wink*.

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I read that as they were excluding mortgage and rent from the figures, that enormous elephant in the room which we have to peer around whilst we discuss how to cook a meal for £2.

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Why your cash really IS going up in smoke:

Alarming new figures reveal how families' biggest cost is now heating and looking after their homes

The cash isn't really going up in smoke - it's going into the pockets of the energy suppliers.

Edited by billybong

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In 2012 the average household spent a total of £489-a-week, down from £526 in real terms a decade ago, as the squeeze of incomes triggered by the recession goes on.

I see a little mathematical problem. Well, two actually, one compounds the other. The table is, for no obvious reason, excluding mortgage payments. So actual weekly expenditure is even higher on average. But let's ignore that, and just use the numbers given, where average weekly expenditure is £489 per week.

On December 2nd, ONS released median household income tables that gave average income at £446.3 per week.

So apparently the average household is sinking inexorably into debt at a rate of £43 per week.

I can see only good ways for that to go.... :huh:

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I read that as they were excluding mortgage and rent from the figures, that enormous elephant in the room which we have to peer around whilst we discuss how to cook a meal for £2.

Rent is not excluded from the figure, and that's what is driving a big part of the increase.

The article is trying to confuse the matter by not saying what's causing the increase, i.e. higher rents and baby boomer BTL parasites.

Edited by richc

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Removing mortgages makes no sense - so someone moving from a rental at say £500pm to a house with a £1,000pm IO mortgage has effectively reduced their housing costs by £500pm?

I can see the argument for excluding the capital part of the mortgage as that is more saving/equity building than a cost. But the interest part surely has to be included?

Edited by martymcfly

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Rent is not excluded from the figure, and that's what is driving a big part of the increase.

The article is trying to confuse the matter by not saying what's causing the increase, i.e. higher rents and baby boomer BTL parasites.

I sit corrected but I wondered if it was in there and there didn't seem to be any sufficiently large category that it could be lumped into, ditto council tax.

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I sit corrected but I wondered if it was in there and there didn't seem to be any sufficiently large category that it could be lumped into, ditto council tax.

Do not worry about it. the office for duff statitistics really is trying ot pull the wool over the country's eyes. The chart missing out core costs is laughable in how badly it misrepresents household living costs.

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I see a little mathematical problem. Well, two actually, one compounds the other. The table is, for no obvious reason, excluding mortgage payments. So actual weekly expenditure is even higher on average. But let's ignore that, and just use the numbers given, where average weekly expenditure is £489 per week.

On December 2nd, ONS released median household income tables that gave average income at £446.3 per week.

So apparently the average household is sinking inexorably into debt at a rate of £43 per week.

I can see only good ways for that to go.... :huh:

That's why we're drawing down our savings! ;)

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They very badly conflate family and household in that article. Many (most) households are singletons, sharers or pensioners. It's the OO pensioner inclusion that keeps down the overall values for rent and mortgage down.

The Office for National Statistics said: ‘The highest spend in 2012 was on housing, fuel and power (excluding mortgages) for the first time at £68.00, overtaking transport spending.

‘This category includes rent, fuel, electricity and maintenance.

Mortgage and council tax bills account for £46-a-week, the figures showed.

EDIT to add: Why is CT in a category with mortgages and not rent. It would make more sense to put rent, mortgages and CT together in a category, which would then become the biggest category.

Edited by Quicken

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Isn't that inflationary?,Taking your parked savings and releasing them into the real world.

Savings aren't 'parked' - they're leveraged up by the bank in order to create bank credit.

If anything, spending savings would be a deflationary activity in that it theoretically diminishes the amount of credit available.

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That's why we're drawing down our savings! ;)

Quite....once you have drawn down your past savings you start on the path of borrowing your future.

One good thing about unsecured debt....it dies with you. ;)

Edited by winkie

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Guest spp

The cash isn't really going up in smoke - it's going into the pockets of the energy suppliers.

If only that was so. Domestic energy production has fallen by 50% over the last 10 years - that is the real canary in the coal mine.

The energy/housing/debt policy set in place over the last 10 years has destroyed this country.

Will the career politicians and banksters be held accountable - not a chance!

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