UK Households Spend More Than They Earn

Households spent more than they earned last year as the typical outgoings of families increased, official figures show.

The Office for National Statistics (ONS) said its Family Spending report found that households £517.30 per week in 2013, a rise of more than £16 on the previous year when adjusted for inflation but below 2006 levels.

Income data had previously shown average weekly earnings at £517 during the period.

Housing, fuel and power costs overtook transport to become the biggest area of spending at a record £74.40 per week.

And it seemed people put a higher price on having a good time ahead of debt worries as recreation and culture was the third largest spending category, with an average £63.90.

It includes spending on TVs, computers, newspapers, books, leisure activities and package holidays.

The ONS said average weekly expenditure on food and non-alcoholic drinks in 2013 was £58.80 - with £15.60 of this being spent on meat and fish, £4.30 on fresh vegetables and £3.30 on fresh fruit.

The figures showed around £22.60 is spent on clothing and footwear.

There was a North-South divide when it came to the regional breakdown of the statistics.

Householders in South East England spent more than Londoners by an average £6 extra at £585.40, partly reflecting higher commuter costs.

The North East spent the least at £424.60 per week.

The figures were compiled at a time when inflation easily outstripped earnings growth, further eroding family spending power.

Rises in the cost of living are currently more evenly matched to wage increases.

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