The ongoing recession in the UK is having a major detrimental effect on the overall income of families. A recent report suggests that, thanks to a combination of factors, the average family will find they are £7000 out of pocket by 2015.
Figures suggest that, in 2011, a family had £800 less to spend compared to 2010, and this is expected to double for 2012. With further rises expected in coming years the total between 2010 and 2015 will be just over £7000 in total.
A combination of rising unemployment, lower average salaries and increased costs on fuel and food are the main influences on the rising cost of living. Records kept since 1948 show that the latest figures for disposable income feature the most dramatic and worrying decline of all time.
General pessimism regarding the overall state of the economy is unsurprising given the state of play in the eurozone at the moment, and it is perhaps telling that more people than ever before are seeking compensation for PPI payments and other mis-sold policies.
With little hope of light at the end of the tunnel families have no option but to tighten the purse strings and ride out the storm, and many are cutting out luxuries to help. Foreign holidays are becoming less popular as people look for cheaper options at home, and sales of luxury goods are also falling.
Commentators are readily blaming the coalition government for its failure to control the state of the economy, but it is fair to say that in a worldwide recession such things are far from simple.