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UK consumers have less disposable income due to rising expenses

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21st Jul 17 10:36 am

Average brit has less to spend than last year

UK consumers have 23 per cent less disposable income than in 2016, according to research released today.

VoucherCodes.co.uk has released its Annual Cost of Living Life Barometer, which revealed the average Brit’s disposable income fell from £426 to £326 a month in the last 12 months.

The survey of over 2,000 adults in the UK shows a sharp drop in the amount people have to spend on non-essentials compared to forecast at the start of the year. A poll carried out by YouGov in January forecasted that consumers would have £471 a month, 44 per cent more than the reality.

Residents in Southampton enjoy the greatest amount of disposable cash at £399, closely followed by London (£376) and Edinburgh (£367). However, those living in Glasgow have the least amount at the end of the month with just £248.

The research suggests this decline is due to Brits  allocating more of their earnings to pay for bills, groceries and rent or mortgage payments as the cost of living increases while wages remain the same.

“The cost of living, and enjoying life in modern day Britain is changing; with wage growth lagging behind inflation and essentials such as utility bills and food prices on the up for many parts of the UK, Brits are having to spend with caution when it comes to non-essentials,” said Anita Naik, Lifestyle Editor at VoucherCodes.co.uk.

It also seems Brits are spending less on holidays and social outings in favour of staying in this year with spending on subscription services such as Netflix, who announced a surge in members earlier this week, on the up.

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