The cost of living has now become so high that a normal family needs around £25,000 just for the basics, this from new research published by Skipton Financial Services.
This figure covers the price of rent or mortgage payments, utilities, insurance, food shopping, motoring and clothing the family. It also covers owning a mobile phone and landline, travelling costs to and from work and maintaining a property.
Of course, this figure does not include nights out, weekends away, takeaway meals, restaurant meals or school fees, making the figure all the more significant.
Andrew Barker, managing director of Skipton Financial Services, said, “It’s frightening how everything adds up. The cost of living is astronomical and now more than ever people have to be on the ball with their expenditure and to keep on top of things.”
According to the research the average family with two children living in the same house as mum and dad will need £24,600 to break even. After income tax and national insurance, the basic taxpayer will need to earn £32,702 to sustain this lifestyle.
That £24,600 is broken down into the following:
1. Mortgage repayments- £4,730 a year
2. Food shopping- £86 a week, £4,457 a year
3. Credit card/ loan bills- £3,131 a year
4. Motoring costs including fuel – £3396 a year
5. Commuting – £2,445 a year
6. Utilities- £1,282 a year
7. Council tax, £1,217
8. TV & phone bills – £844
This is being made all the more problematic by the presence of inflation. With estimates of UK inflation now up to 5%, and real wage increases lagging behind at 1.4%, this is a problem set only to get worse.
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