Household income falls back to 2005 levels

1 August 2012

Posted by John King

Household income for Britons has dipped to its lowest level since 2005 amid the continually gloomy economic climate.

According to figures from the Office for National Statistics, real income per head fell by 0.6 per cent quarter-on-quarter for the first three months of 2012, the worst decline in seven years.

This was attributed to prices for goods and services going up during every period except for 2009, wages stagnating and the general population increasing.

It suggests more people than ever may be forced to budget tightly for essentials like food, home heating oil and electricity, as disposable income per head also fell by one per cent, the lowest since 2003.

The news comes after it was revealed last month by NS&I's Quarterly Savings Survey that 37 per cent of Britons would not have enough money in place to cope should an emergency arise.

Drawing up a list of outgoings, comparing prices and taking advantage of offers like BoilerJuice's buying Weekends could help homeowners to make the most of their money.

Click here for a home heating oil quote