Household disposable income sees record fall
According to data published by the Centre for Economics & Business Research, household disposable income in the UK fell by a record £43.95 a week in June, equivalent to £175.80 per month.
Resolution Foundation (an independent think-tank focused on improving living standards for those on low to middle incomes) predicts that real household disposable incomes will fall by 10% by 2023 – 2024, equivalent to a drop of £3,000 for the average family over the next two years.
With energy prices at an all time high, it is no wonder that 20% of households are already suffering a negative disposable income of £60 a week. It seems likely that more families will fall into the red over the coming months as they struggle to afford the basics. Indeed many organisations have warned the Government that millions of people in the UK would be forced into absolute poverty when the energy price cap is introduced on 1 October 2022. It remains to be seen how much the new price cap announced by Liz Truss will mitigate the problems facing the nation, but there is no doubt that regardless, a large number of people will struggle over the coming months.
If you require advice on any aspect of personal insolvency, please contact John Bradshaw or Sarah Mower in our Insolvency & Business Recovery Team.
Sarah Mower is a chartered legal executive and specialist in Insolvency & Business Recovery at Barker Gotelee Solicitors.