Two-child families need £25,000 a year to survive

| November 15, 2012
Two-child families need £25,000 a year to survive

Families with two children need to bring home £24,800 a year just to break even, according to financial advisory firm Skipton Financial Services.

This means that they need to be earning more than £30,000 a year gross in order to survive.

The cost of living has increased by £130 compared with last year Skipton revealed, after surveying of the expenditure of 2,000 families with at least two children.

Skipton took only essential spending into account in its calculation of the minimum needed to survive, including housing, utilities, insurance, food shopping and motoring, clothing, mobile phones and landlines, travelling to and from work and property maintenance.

It excluded any luxuries such as eating out, leisure activities and holidays.

The study revealed that weekly food bills have increased by £33 to £86, while the cost of travelling to and from work has increased by £216 to £2,672 a year on average.

Other items which have increased substantially include television subscriptions, home insurance premiums and mobile phone bills.

Andrew Barker, managing director of Skipton Financial Services, said: “It is easy to understand why the large majority of Brits are so cash-strapped.

“While there has been some change in spending habits this year compared to last, families are still paying out almost as much money on the food shopping as they are on their mortgage payments.

Utility bill expenditure remained stable at £1,283 a year but this looks set to change following recent increases in energy prices.

The average energy bill is expected to reach £1,392 over the next year, which will push the cost of living even higher for struggling families.

Energy company SSE, which increased prices by 9 per cent last month, today reported a 38 per cent increase in half-year profits to nearly £400 million.

Earlier this year both British Gas and EON increased their profits by almost 25 per cent.

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