Households face biggest squeeze on disposable income since 1920s - 11/04/2011
Householders might be inclined to carry out an energy comparison after hearing that the UK is undergoing the biggest peacetime squeeze on disposable income since 1921.
According to figures from the Centre for Economics and Business Research (Cebr), this year is likely to see a fall of two per cent in real household disposable incomes, following a 0.8 per cent drop in 2010.
Households will have around £27 billion less spending power in 2011 than in 2009, which represents a fall of £910 per family.
This is due to high inflation, low earnings growth and a surge in commodities such as cheap energy, food and clothing.
Douglas McWilliams, chief executive of Cebr, commented: "We have been pointing out the pressures on household incomes for over a year, during which the underlying position has deteriorated as average earnings growth has remained very low while commodity price inflation has accelerated."
Energy consumers could compare energy tariffs online to see whether they could save money on bills.
If you want to find out more about how to compare energy suppliers and save up to £453 in minutes, click here.
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