Consumer spending power curbed

Last Modified: 08 Oct 2007
By: Bridgid Nzekwu

The squeeze on disposable income becomes tougher, thanks to rising taxes and the cost of mortgage payments, food and fuel.

The amount we have leftover to spend after taxes and household bills has reached its lowest level in a decade, according to a report.

The price comparison website uSwitch claims that despite a rise in average salaries, the proportion of disposable income available has actually dropped.

The website's personal finance expert Mike Naylor said: "Our pay cheques may be getting fatter, but the chunk that we have to hand over to pay taxes, bills and other living costs is growing even faster.

"We are working harder, but we are not getting any wealthier - we are just running to stand still."

The cost of water, heating and rent bills have risen on average by 33%, 46% and 44% respectively over the past decade, uSwitch said.