A recent survey suggests that by 2015 families in the UK will have on average £7000 less to spend as increasing unemployment and lower wages really start to hit home.
As the economic crisis continues families are really starting to feel the pinch from all directions as energy bills, food and fuel costs impact the household budget.
In 2011 the average family was £800 worse off when compared to the previous year but by 2015 this figure is expected to have gone up to more than twice this.
Liz Tyler, spokesperson from www.protection.uk.net said: “It is really easy to see how families could soon end up in financial difficulties and perhaps be unable to meet some of their biggest spending commitments like their mortgage for example.”
“With this in mind households might like to consider protecting their financial security and ensuring that at least some of their largest commitments are met. There are many products that can help with this and www.protection.uk.net could help.”
Recent government figures highlight the huge difficulty that families are facing not only now but into the future and just how badly what their take home pay will buy them compared to very recent time.
Bank of England governor Mervyn King has suggested that Britain faces five more tough years and needs to face up to at least five more difficult years.
Rachel Reeves, Shadow Chief Secretary to the Treasury, said the hit on families was a direct result of the weakening economy.
She said the OBR’s initial forecasts had already taken into account the direct impact on household finances of tax rises and spending cuts such as last year’s VAT rise and this year’s reduction in tax credits.
Miss Reeves has suggested that ordinary families have paid a “heavy price” for the lack of economic growth and blame the Government for “choking off recovery”.
She told the Resolution Foundation: “The failure of David Cameron and George Osborne’s economic plan will cost families dearly. Not only are they hitting family finances hard with big tax rises and deep cuts to tax credits, but by choking off the recovery and pushing Britain into a double-dip recession families are earning less as well.”
“Even if the economy eventually recovers as the government hopes, by the time of the next election families will now be £1,700 worse off than if the recovery had been sustained. This is a permanent loss of income.”
“These shocking figures show the heavy price Britain will pay for years to come for George Osborne’s economic failure and years of lost growth.”
Article reproduced using data publically available. Sourced: 2012-07-10