The Money Stats – September 2019 – The Rising Cost of Everyday Life

Some of the most basic costs of everyday living have shown considerable increases in their average cost over recent years, affecting other parts of life in turn, according to the September 2019 Money Statistics, produced by The Money Charity. 

Coinciding with the Office of National Statistics’ (ONS) report on energy trends and prices, figures calculated by The Money Charity show that UK households spent £111.27 million per day on the core utilities of water and energy in the first quarter of 2019. When broken down to a per household amount, this equates to an average daily spend of £4.05 per household per day, or £28.35 per week.

This is up from £3.10 per household per day in Q1 2015, or £21.70 per week, representing an increase of 30.6% over the last four years on services which most would agree are essential parts of nearly all aspects of everyday life.

These rising costs have knock-on effects in other areas as well, such as with families and children. The Child Poverty Action Group (CPAG) have recently published their 2019 update to their “Cost of a Child” report, which each year calculates the total cost of raising a child from birth to its 18th birthday. This is achieved by taking the UK’s minimum cost of living, and then measuring the extra cost incurred by a household as each child is added to it.

This calculates that the average cost to a couple remains similar to last year’s calculation, at £150,582, but that the cost for a single parent family rose to £185,036. When broken down, this means the average child costs a single-parent family £28.16 per day to raise, compared with £27.90 in 2018, whereas for a couple, this cost is £22.92 per day (Raising a child is more expensive for a single parent because in a couple household costs are spread over more people.)

According to CPAG, rising energy costs have been a significant contributor to the higher costs of raising a child that can be traced over recent years. However, it is also worth noting that an even bigger item of expenditure is the cost of childcare, with its net cost (i.e. the difference between total childcare costs and government tax credits) having tripled over the last ten years.

Erik Porter, Acting Chief Executive of The Money Charity says:

“While prices are ultimately always expected to rise in most cases, the sizeable increases seen across recent years for core utilities emphasise the permanent importance of robust and well-considered budgeting, which we see as an essential ingredient to achieving financial wellbeing. Key to that is honestly weighing up income and expenditure, determining personal spending priorities, and actively shopping across the market for those opportunities which keep outgoings at their lowest optimum rate.

“Alongside that, it is also essential that voices like ours are heard loudly in market considerations, calling for consumers’ best interests to be at the heart of processes and policies, with healthy competition and regulation ensuring fairness and accessibility for all.”

 

Other striking numbers from the September Money Statistics:

  • The number of people unemployed in the UK fell by 79 per day in the year to July 2019. (P19.)
  • 1,065 people a day reported they had become redundant in May to July 2019. (P20.)
  • Borrowers paid £139 million a day in interest in July 2019. (P5.)

Get the full picture and many more fascinating facts about money in the UK in our monthly Money Statistics.

 

Notes to Editors

  • The Money Charity is the UK’s leading financial capability charity. We believe that being on top of your money means you are more in control of your life, your finances and your debts, reducing stress and hardship, and that being on top of your money increases your wellbeing, helps you achieve your goals and live a happier more positive life as a result. Our vision is for everyone to be on top of their money as a part of everyday life. We empower people across the UK to build the skills, knowledge, attitudes and behaviours, to make the most of their money throughout their lives. Find out more at https://themoneycharity.org.uk/
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