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Families lost £5 per day in 2011

1/6/2012

Middle-class families have lost around £1,650 during 2011 – equivalent to almost £5 per day – according to research carried out by moneysupermarket.com for The Daily Telegraph.

According to economists, this represents the biggest squeeze on household incomes for 80 years.

Douglas McWilliams, chief executive of the Centre for Economics and Business Research (CEBR), told the Telegraph: “Over 2011 there has been the biggest squeeze on incomes since the 1920s”.

The research revealed that rises in the price of household bills including food, energy and water, have added nearly £900 to the typical costs of running a household.

This, combined with the removal of tax credits for middle-income families and other changes in the tax regime which have eroded budgets by an additional £750, means that a total of £1,650 has been removed from household income.

The CEBR thinktank continued: “Middle-income households will see the highest increase in the cost of living.”

Categories; Current UK Economy, Income Worries and Debt, Young Family Finances,