Bills to overtake wages by 2024 

A joint report from Yorkshire Building Society and consultancy the Centre for Economics and Business Research found that households face living £1,200-a-year beyond their means.

Millions will be compelled to utilise savings to get by, with four in 10 people already dipping into their savings to cover day-to-day expenses, the research said. 

The report forecast weekly household spending rising to £705 by 2024, with average weekly incomes falling in real terms. They are forecast to reach £680, as wage increases lag behind soaring inflation. 

Higher utility bills and rising petrol and transport costs will continue to push up outgoings, the research said.

Petrol is currently 163.5 pence per litre, and the energy sector has warned annual bills could hit £3,000 before winter. 

Supply chain issues which began in the pandemic and were worsened by the war in Ukraine have pushed up prices in supermarkets, while rising interest rates are adding to mortgage bills.

Furthermore, homeowners of middle age, who spend more on transport and recreation than other age demographics, will see their outgoings rise to as much as £803 per week, according to the research. 

Nitesh Patel, strategic economist at the Yorkshire Building Society said: “Costs are rising at a considerably higher rate than income, and will soon overtake income altogether. This level of inflation will see savings quickly depleted for those who have them if action is not taken.”