Nearly a fifth of our weekly household spending now goes towards household bills, which is more than double the equivalent amount from the 1950s. The change, revealed by the office for National Statistics reflect recent house prices, interest rates and domestic fuel price rises although by comparison, expenditure on food and clothing has almost halved in the 50 years that such statistics have been collected.

Such large changes in the way we spend our money prove how life has changed since the post-war years, particularly with the rise and dominance of large supermarkets and the advent of cheap clothing stores selling throwaway fashion.

The ONS published statistics for 2006 yesterday which reveal that spending on household related costs has risen by more than £15 per week over the past two years alone. It hit £143 per household per week in 2006 compared with £127.40 in 2004 with this figure including mortgage capital repayments, council tax and the cost of selling and buying a home. This represents the largest single household outgoing, accounting for 19% of average weekly expenditure compared to just 9% in 1957.

Experts have warned that with the high rise in house prices people are taking out even greater mortgages which coupled with a series of interest rate rises is leading to debt problems. Many people find themselves in debt because of ever increasing living and household costs rather than due to expenditure on luxuries. At the moment, the full impact of interest rate rises on housing debt has not been seen, although more and more people are seeking help with their debts. More and more people are expected to find themselves in financial difficulties because of the recent and predicted increases in fuel costs.

ONS statistics reveal that spending on food and non-alcoholic drinks has dropped sharply over the years, because of the wider availability of cheaper food in the supermarkets. Also their diversification into clothing and other non-food products, coupled with the emergence of cut price fashion stores, has led to a reduction from 10% of weekly expenditure in 1957 to just 5% in 2006. But people do not feel they have more money in their pockets because of the price increases for mortgages, petrol and energy.

Back to Main News Page

Article referenced from http://icwales.icnetwork.co.uk/news/uk-news/2008/01/29/household-bills-double-over-last-50-years-91466-20405416/