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UK households struggling to cope with the economic downturn could see a boost regarding their disposable income next year, according to leading economic research. A recent report from the Centre for Economics and Business Research
(CEBR) found that UK households could be £5 a week richer this time next year. However, many will still be £3,000 a year worse off than they were in 2007. The study of disposable incomes by CEBR predicts that the average weekly figure for middle class families will rise by 0.5% next year.
Food prices recently fell by 0.5% last month, marking the biggest reduction in two years. If this continues, household incomes could be set for a major boost. However, the additional £5 a week will be too small for the ‘A’ and ‘B’ socio-economic groups to notice an impact. Despite the positive prediction, the figure is still far from the pre-credit crunch levels. The figures include various types of income, such as salary, benefits, investment income and any pensions if people have retired. It has been calculated after people have paid their mortgage or rent, as well as tax. The figure has also been adjusted in line with inflation for a ‘real’ estimate. Before the credit crunch in 2007, typical middle and upper class families had a weekly income of £949, according to CEBR. This increased to £979 in 2008 but has since decreased dramatically. This year, CEBR believe that the weekly income is just £885. However, this is significantly less for low-income families. The CEBR predicts that the weekly income will increase by just £1 for low earners whose average weekly disposable income is £609. In the run up to Christmas, if you are struggling to cope with the rising cost of everyday expenses, it could be worth considering taking out a personal loan. Compare personal loans with Money Expert.
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