Stephen White, Interim Chief Executive, YBS

Stephen White, Interim Chief Executive, YBS
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Stephen White, Interim Chief Executive of Yorkshire Building Society, comments on the expected increase in the average household spending deficit.

The average UK household will be short of a £100 a month by 2024, as the cost of living crisis means expenses will outpace incomes. The figures come from a Yorkshire Building Society’s Inflation Nation report and reveal that weekly household spending is set to rise to £705 in just two years’ time. 

However, the report, which was conducted in partnership with the Centre for Economics and Business Research (Cebr), shows that real weekly incomes will rise to just £680, leaving households short of £25 a week, or roughly £100 a month.

Yorkshire Building Society’s study seeks to understand how prepared UK adults are to cope with the cost of living crisis. It reveals that despite incomes remaining slightly higher than expenses in 2021 (£596 versus £595, respectively), the rising cost of living has already forced nearly four in ten savers (39%) to dip into their savings in the last 12 months.

We may be emerging from the global pandemic, but our figures indicate we are moving from one crisis to another.
“Inflation is already high and this, coupled with increasing energy price caps and fuel charges, means there could be challenging times ahead for many households.
“Families across the UK are already having to budget carefully in order to make ends meet. Some have accrued savings over the course of the pandemic, which can help foot monthly bills. Others simply do not have the financial resilience to withstand rising costs.

Full press release: Average households can expect a £100 a month spending deficit on income against expenditure by 2024 as cost of living bites, according to analysis

For more information, please contact Yorkshire Building Society's Press Office on pressoffice@ybs.co.uk

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