The average household is 15% worse off than in 2003

Consumer spending power has fallen dramatically due to rises in the cost of living according to a report by Ernst & Young.

Ernst & Young is one of the largest professional services firms in the world and one of the Big 4 auditors, along with PricewaterhouseCoopers, Deloitte Touche Tohmatsu  and KPMG. 

After essential living costs have been paid the typical family had less than 20% of gross income left - compared to 28% 5 years ago. For those with debt management problems, the situation is worse due to rising interest rates.

Key findings from Ernst & Young revels :

• Monthly disposable income for the average household is £772- down from £909.
• Average monthly mortgage payments are £735, an increase of  78%.
• Fixed monthly household costs have risen by 45%
• Petrol costs for a typical household are £193.61 per month - 29.4% higher.
• Average monthly energy bills have risen by 110% to £95.80.
• Council tax is up almost 25% to £114 per month for a band D property.

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