How Recession Affecting UK Families

HOW THE RECESSION IS AFFECTING UK FAMILIES Families around the UK feel financially strained as unemployment and the rising costs of living continue to take a toll. According to the Office for National Statistics, the UK unemployment rate was 8.4% in the last quarter- the highest since 1995. Statistics show that young people are suffering the most, with more than one in five without a job. This takes the unemployment rate between 16-24 year olds to 22.2%. Food prices in Britain are also rising at three times the rate of the world's biggest seven economies. Figures from the OECD puts food inflation at 6.3% compared to an average 2.1% for the G7 group of nations - France, Germany, Italy, Japan, United States and Canada. With unemployment currently standing at The unemployment rate has not been higher since 8.4 % 1995 the highest it's been since 1995 – and inflation sky-rocketing everyday essentials, families are worried that the economy is driving them deeper into debt. and the number of unemployed people has not been higher since The British economy shrank a total of 7.1 % 1994 in the 'Great Recession' (spring 2008 to summer 2009) Prices at the pumps are at an all-time high and food inflation has risen to 6.3%. That's three times the rate of the world's seven biggest economies, bringing the average weekly household expenditure to £473.60. UK Food Inflation 16.3% Average of G7 Nations 12.1% (France, Germany, Italy, Japan, UK, USA & Canada) 10.8% Netherlands | 0.1% France Average UK household income and expenditure Household income has fallen by 3.5% as salary rises fail to keep up with the rate of inflation. The growth in household outgoings such as bills means families have experienced a drop in disposable income for the fifth year running. According to The Bank of England, households have lost an average of £552 in the past 12 months. 2001 2002 DISPOSABLE INCOME 2003 2004 HOUSEHOLD SPENDING 2005 2006 2007 2008 2009 2010 6.0% The annual percentage growth of g is 5.0% 4.0% household higher than for the comele in the 3.0% first Jast 2 years. This means 2.0% UK families e less 1.0% disposable Income than now OFFICE 0.0% they used to. -1.0% -20% -3.0% -4.0% SUPER r Average weekly expenditure by UK households As rent, food and fuel bills continue to rise, families are forced to cut back spending on non-essential items such as clothing and recreational activities. The average weekly household expenditure is now £473.60, with the biggest outlay being transport, which accounts for 14% of spending. £5.00 £31.40 £11.80 £64.90 £23.40 £10.00 £60.40 £35.90 £53.20 £13.00 £58.10 £39.20 O Health Education Total up Alcohol & Tobacco £406.30 Mobile & Internet Clothing & Footwear Housekeeping Other Expenditure Miscellaneous £67.30 Eating Out Food & Non Alcoholic Drinks £473.60 Recreation & Culture Housing, Fuel & Power Transport How to save money on everyday essentials Transport Shut the windows Check tyres pressure Turn the air conditioning off Keep the car serviced Shop around for petrol Housing, Fuel & Power Reducing room temperature by 1C can cut heating bills by 10% Turning appliances off instead of leaving them on standby will help you to save 6 - 10% in electricity Ш Double glazing can reduce heat loss by 33% Turn off the tap when you Double glazing can reduce heat brush your teeth and save 7-12 litres of water per minute loss by 33 % Take accurate meter readings so that your bill isn't calculated by an estimate as this could cost you more Recreation and Culture %24 BUY Sign up to voucher code Take advantage of 2-4-1 offers sites for discounts on eating out ME 123456 Find free admission venues / events like art galleries and museums Food and Non-alcoholic Create a weekly shopping budget and stick to it %. Plan meals so that you don't waste food or money Take advantage of supermarket deals and special offers .... MY SHOPPING LIST Shop around for the cheapest goods Making a packed lunch for work could help you save more than half of what you normally spend. Baines &Ernst Data Source Offico for National Statistics (www.ons.gov.uk) and Energy Saving Trust (www.energysavingtrust.org.uk) JOB VACANCY