The disposable income in United Kingdom has slumped into its lowest in a decade, with many families finding them short of about £2,600 a year to spend compared to last year’s 12-month period.
Last year saw an average family in Britain had a disposable income of £1,425 per month. This year, it went down to £1,210 per month, which is £215 less the previous your. Over 12 months period, the relatively small £215 difference becomes a significant £2,580.
The rise of fuel price, food, mortgage, energy tariffs, tax and household goods leave many citizens sweating over the financial undertaking.
The price of food for the past 10 months has increased by some 25%, petrol fuel by 30% and electricity by a staggering 60%. All signs and indications are showing the imminent arrival of financial recession. On top of that, the rise in salary and wages has not been able to cope up with the increase in national inflation rate. About 9 million people, who represents about 25% of the national workforce, will get no salary raise at all this year.
Disposable income is defined as the surplus of earning after all deductions such as taxes, provident fund and the essential expenses e.g. food, clothing and accommodation.