Costs go up £5 a day for middle class
MIDDLE class families are having to find almost £5 a day extra to cover increases in taxes and the cost of living in the past year, research reveals.
Household costs have risen by £1,650 since last January.
Research by the price-comparison website MoneySupermarket.com found that rising household bills, including the weekly food shop, filling the family car with petrol, home insurance and utility bills, have cost the average British household around £900. And analysis of Treasury changes to the tax system, including the removal of tax credits for middle-income families and the VAT rise, shows families have been hit with an extra £750 annual tax bill.
Over 2011 there has been the biggest squeeze on incomes since the 1920s
Douglas McWilliams, of think tank the Centre for Economics and Business Research, said: “Over 2011 there has been the biggest squeeze on incomes since the 1920s.”
The think tank warned that food, transport and energy prices will continue to rise in the first six months of 2012.
Howard Archer, chief UK and European economist at IHS Global Insight, said households had suffered from a “major” and “extended” reduction in their wealth.