Brits hit by 26% hike in monthly outgoings

Brits are spending 77% more on child care costs and up to 30% more on everyday bills such as TV subscriptions and water rates. New figures from Combined Insurance’s Cost of Living Tracker reveal that, since June 2006, the cost of average monthly commitments have soared by 26%.

At a time when Britons brace themselves for a series of cost of living hikes, the new research from Combined Insurance has revealed that it is not just mammoth energy bills but the smaller, unexpected costs that are hitting family finances.

Combined Insurance has tracked people’s actual monthly spend on bills and living costs over the last two years. The results show that people’s average monthly outgoings have risen from £945 in June 2006 to £1,281 June 2008.

Brits are forking out a third more each month for rent and mortgage payments with people in the North being hit the hardest. Across the UK, rent payments have risen by 30% and mortgage outgoings have gone up by 33%. People in the North are paying out up to 42% more and those in Scotland, 51%.

More than half the people surveyed said they were surprised by the hikes they experienced in utility bills (53%). Household spend on gas and electricity has gone up by 32% since 2006. Low income earners are feeling the pinch the most, reporting a rise in utility spend of 42%.

In London, those hit the hardest by costs in the country, people are spending 55% more of their household income each month on bills. The South is the second hardest hit region (38% increase) followed by Scotland (32%), the Midlands and West (27%) and the North (24%).

At a time when Brits should be preparing for the unexpected, alarmingly people are spending less on their insurance premiums. The average spend for insurance premiums each month has dropped by eight per cent. Higher income earners are disregarding the need for financial protection the most – putting themselves at risk should the worst happen. The spend on insurance for this group has dropped by 20%.

Nigel Brittle, Director at Combined Insurance commented: “The many cost of living hikes are taking their toll on the monthly budget and many Brits are living on the edge with their finances. As Britons prepare to make cutbacks on their spending, which may include cutbacks on various insurance commitments, Combined Insurance urges the public not to cancel insurance policies designed to protect incomes in hard times or in bad health. For people that do not have the luxury of large savings nest eggs to rely on in hard times, there are low cost insurance options available that can protect people from loss of income. As a leading community insurer, Combined Insurance is committed to helping people plan for the future and help make a bad day better.”