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Disposable Income Is At Its Lowest For A Decade


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HOLA441

http://www.dailymail.co.uk/pages/live/arti...d=1770&ct=5

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Soaring cost of heating, petrol and mortgages means families will pay £800 MORE this year

By JANE MERRICK - More by this author »

Last updated at 07:30am on 10th March 2008

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Dramatic increases in household bills will leave the average family £800 worse off this year - even after pay rises.

The cost of fuel, energy and mortgage payments have created a huge burden with every home forced to find an extra £67 each month to make ends meet, research shows.

Disposable income is at its lowest for a decade in what will be seen as a failure for the Labour government

Chancellor Alistair Darling will face furious criticism if he fails to take action to reduce the price of gas, electricity and fuel bills in his Budget on Wednesday.

The figures are all the more worrying as he prepares to give a gloomy outlook caused by the worldwide credit crisis. This year average income for UK workers will rise by 3.4 per cent - amounting to £533 or £44.45 per month. Based on the typical household with more than one earner, this is equivalent to £81 per family per month.

But the cost of living has soared by 9 per cent, more than four times the Government's favoured rate of inflation, or by £1,783 a household for the year.

The average increase in monthly expenditure is £148 - meaning there is a £67 deficit per household per month, or £804 per year. Applied to all 25.9million households in Britain, this is a cost to the nation of £20.8billion, according to the research by the independent price comparison website uSwitch.com.

The highest percentage price rises are in petrol and other fuel. The average annual outlay on unleaded petrol has climbed by £192 to £1,272. This is an 18 per cent increase - more than eight times the rate of inflation.

Gas and electricity have rocketed by 13 per cent, or £114, to an average of £1,026, while grocery shopping costs £324 more than a year ago, to £3,180, a rise of 11 per cent.

However the official inflation rate is of course only 2.2% so no panic everything is under control! Never mind the fact that people are getting poorer & poorer but at least we can have faith in our Subprime Minister who promised 'no boom no bust'

Someone is not a happy bunny!

It is about time that someone exposed the lie that is perpetrated by this government that inflation is just above 2%.

It is beyond belief that the Bank of England refuses to cut interest rates because of concerns about inflation when the figures in this paper clearly indicate it has already arrived!

The calculation of the inflation rate is just a cynical ploy by this government to hold down wage claims.

- David Osborne, Mold, Wales

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HOLA442
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HOLA443
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HOLA444
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HOLA445
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HOLA446
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HOLA447
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HOLA448
The biggest rises in cost are the essentials like food, energy, petrol which are going up in double digits- funny how CPI doesnt reflect this [about 2.0% is the CPI - at 5x lower than what the essentials are going by]

it is called 'corruption'. What would happen to interest rates if BOE had to deal with the real inflation of 8% or 9%? interest rates would be at least 10% & kill Brown's miracle quicker than he could fart!

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HOLA449
it is called 'corruption'. What would happen to interest rates if BOE had to deal with the real inflation of 8% or 9%? interest rates would be at least 10% & kill Brown's miracle quicker than he could fart!

It's a total sham alright - IR's at 10% would be just about enough to kick things back into touch - but Browns a lying, cheating bast*rd.

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HOLA4410

What a shame that people who read the Daily Mail have no understanding of the monetary system.

What the piece shows is the second stage of excess money printing. The first stage being something DM readers love - house price inflation. I don't remember any articles moaning about that.

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Guest Bart of Darkness

9% seems a reasonably accurate figure for real inflation.

Enjoy eating your roast usb sticks.

I steam mine, you get more of the flavour that way. Although I've a hankering to try 'em stir fried. Mmmmm.... mouth watering. And 8 gig is enough to feed a family of four. 2 gig is fine for the single bloke.

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HOLA4413
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HOLA4414
It's a total sham alright - IR's at 10% would be just about enough to kick things back into touch - but Browns a lying, cheating bast*rd.

What would happen if IRs went up to 10+% though? Everyone goes bankrupt pretty quickly.

The level of both public and private debt is too big to be paid back. All they can do is debase the currency, and all you can do is get used to feeling much poorer.

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HOLA4416

Actually, it's much, much worse than this, and it's the reason you're (we're) all feeling much poorer than these figures indicate.

let's say, for example, that you're on an average wage (let's not quibble about the figures, say a nice easy £24k.

ok, this gets taxed, your pension and your NI comes out of this, so your monthly income is around £1250 after all this comes out.

Now, lets say the things you HAVE to pay (council tax, gas, leccy, etc.) have gone up by an average of this 9%, and you spent £1,000 last year on these essentials last year, giving you a disposable income of £250 per month, to spend on your holidays, fags, booze, whatever.

Now, the essentials have increased by 9%, to £1,090. This only leaves you with £160 disposable income. i.e. your actual disposable income has reduced by a nice whopping 56%!!!

Add into this mortgage rates increasing for people who are having to remortgage this year, or are on variable, then you could easily see people struggling and even having to borrow just to pay their essential bills....

All this is a recipe for.... BOOM!

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HOLA4417

Mail scare story.

And where are the figures for:

Clothes

holidays

Hair cuts/CDs/Books/Newspapers/toys

Telephone bills

etc etc

Plus what is the mortgage number? It is over half the mail's figure. do you spend half your money on your mortgage or rent?

I guess it is the payment on a mortgage for an averaged priced house if bought today - missing the fact that some people are living mortgage free or have bought in any year in the last 25 years. If house prices fall a little, this "mail inflation index" will be showing negative.

The mail are making up the figures to write a story.

Who reads this tosh?

EDIT: typo

Edited by ds_t
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HOLA4418
Some goverment paid **** is now going to post - "oh well computer storage has crashed and offset these increases - e.g you can get a 8 Gig usb memory stick for £20, when a year ago it was £100+. "

Enjoy eating your roast usb sticks.

hehe I see they have included memory sticks now in inflation figures...

OK I now predict a houseprice crash

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HOLA4419

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