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The average British household now spends less on food and more on housing in a complete reversal of the situation that existed 50 years ago, according to the Office of National Statistics (ONS).
It is the 50th anniversary of the ONS Family Expenditure Survey and to celebrate the significant date the agency has highlighted the differences in how household income is spent.
According to the survey rent or mortgage interest payments in 2006 accounted for 19 per cent of Briton's annual spending compared to only nine per cent in 1957. But, the biggest difference is in the cost of feeding the family which has dropped from a whopping 33 per cent in 1957 to 15 per cent today. That figure also includes spending on non-alcoholic drinks, whilst the report shows that spending on alcohol has remained constant at three per cent of income.
The amount we now spend in the UK on transport has doubled to 16 per cent of household income, but fuel and power for the home only accounts for three per cent of the total bill, compared to almost twice that in 1957.
The way is which UK spending habits have changed is quite significant as it ultimately forms part of the data used to calculate the Retail Price Index (RPI). It is also widely used by business, academics and government departments for a number of different reasons, and for that reason the data is universally accepted as accurate.
In absolute terms the 2006 figures mean that household spending totalled £143 per week out of a total weekly expenditure of £456, representing 22% of household income. But, the UK average conceals many regional differences. For example, the average rent across the UK was £60 per week, but Scottish rents averaged only £30, whereas London averaged £94 per week.
The average cost of mortgages was again highest in London, with the weekly cost in the capital averaging £174, whereas Northern Ireland mortgage payments averaged £94 per week; and for the UK as a whole it was recorded at £132 per week.
In terms of spend the research ranked the top 50 items, from both 1957 and 2006, and costs relating to housing recorded the highest expenditure on both lists. However, 20 items of food and drink were recorded on the top 50 list, four in the top ten from the 1957 list, against a mere ten items in the 2006 top 50, with only one to appear in the top ten being ‘meals eaten out'.
The most notable difference between the two lists was with tobacco. In 1957 it accounted for six per cent of expenditure, but in 2006 it barely registered at only one per cent as people become more aware of the impact of smoking on their health. Article Source: http://www.ArticleBlast.com |