Household bills have soared by 40 per cent since 2007 with families spending £2,400 more EVERY year

Household bills have soared by over 40 per cent since before the recession - with families spending almost £2,400 a year, research has claimed.
The yearly cost of household bills has gone up from £5,834 five years ago, to £8,202 in 2012, according to Bacs Family Finance Tracker, the company behind direct debit payments.
The cost of paying for lifestyle services, such as mobile phone, gym memberships and personal loans, has also increased from its pre-recession high of £3,830 to £4,146 - bringing the average cost of bills up to £12,358 a year.

Under pressure: Household bills have soared by 40 per cent in the last five years, according to Bacs, putting more pressure on family finances.

The research – which looks at the spending habits of almost 4,000 adults in Britain – said that a quarter of people often find themselves overcommitted financially, compared with 17 per cent in 2007.
Mike Hutchinson, of Bacs, said: 'Our latest research clearly shows that hard-pressed family budgets are being strained more than ever.

 

'The household purse is increasingly being squeezed and a big bill could tip the family budget over the edge, but splitting that cost across the year could relieve some of the strain and with the discounts offered from many billers and service providers for paying by direct debit, there’s an opportunity to save some vital pounds.'

 

News today that inflation has fallen for the first time since September provided some temporary respite for household finances. Average prices went up by 2.4 per cent compared to a year earlier, according to the Office for National Statistics' consumer prices index - but that was down from a rate of 2.8 per cent in March, and considerably lower than had been expected by analysts.
But the dip in inflation, which is still above the Bank of England’s 2 per cent target rate, isn’t tipped to last as it expects inflation to spike above 3 per cent in the summer as the impact of rising gas, water and electricity bills feeds through.

Adding up: How Bacs calculated the rising cost of bills

Last week Ernst & Young ITEM Club warned that above target inflation would be a fact of life for the next four years.
In its forecast, it said that families struggling with weekly food shopping bills have seen costs soar by 40 per cent since 2007.  
Bacs has launched a campaign to encourage people to spread the cost of monthly bills by paying via Direct Debit – as many companies offer discounts to customers who pay via this method.
The campaign, called the Big Break, is being supported by utility companies, local authorities and service providers.
It includes a competition where customers can win the chance to live bill free for a year by winning £12,000. For full details visit www.thebigbreak.co.uk.