Brits have less money to spend than a year ago

18 June 2012

Posted by Neil Brunskill

A new survey has revealed that British people have an average of £34 a month less to spend after they have paid for essentials like food and bills.

Lloyds TSB found discretionary spending power fell by 0.3 per cent in May 2012 when compared with the same month last year, mostly due to weak income growth.

The proportion of people who have noticed the cost of essentials like food and home heating oil increasing was 83 per cent, although 54 per cent of respondents said they live comfortably and have some money left over each month, up by six per cent since April.

Many Britons may be budgeting and comparing prices more than they used to, as 59 per cent said they would be likely to save excess money for a rainy day rather than spend it.

It comes after a Santander poll published last month found two-thirds of respondents are using their radiators less in a bid to cut down on the use of heating oil and other fuels.

Patrick Foley, chief economist at Lloyds TSB, said: "The squeeze on consumers is remaining in place longer than many thought it would."

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