Bills up 25%, wages up 6% since 2008

Graham_Devon

So much for low inflation!

Since 2008, wages have risen on average by 6%.

However....

Rent up 24%
Food up 17%
Gas up 52%
Electric up 32%
Water up 14%
Petrol up 33%
Phone line up 31%
Car insurance up 67%

Though broadband has fallen 68%

A survey conducted by uswitch suggested more than half (55%) of households now sight the rising cost of living as their biggest concern.

To put the prices into persepctive, the monthly shopping bill is now up £36 per month (£432per year) in itself wiping out the entire average increase in wages.

Apparently people are now "running out of of ways to fund their ever increasing bills". People have already cut, switched. They can't do much more. (again - all on average).

Is it really any wonder that demand for stuff is falling? High street chains closing and finding it tough?

http://www.thisismoney.co.uk/money/bills/article-2292579/Financial-fear-peaking-household-bills-25-years-wages-rise-just-6.html

james_toney

this is why i was so convinced of a crash in house prices, i could not see where people were getting their money from.

ukcarper

Although wages have only increased 6% peoples take home pay has increased 10% RPI over period is 17% so living standards are falling back.

But what do you expect given the state of the economy and what do you suggest is done to improve situation.

By the way between 2000 and 2008 RPI was 22% but earnings increased 39%

shortchanged_2

james_toney wrote: »

this is why i was so convinced of a crash in house prices, i could not see where people were getting their money from.

It's why we have such a low level of house sale transactions.

There is an ever increasing number of cash buyers and those who are swapping houses of similar values.

wotsthat

Graham_Devon wrote: »

Apparently people are now "running out of of ways to fund their ever increasing bills". People have already cut, switched. They can't do much more. (again - all on average).

During a recession people prefer to accept lagging pay rather than take a risk and change jobs. I've many years of service - why take the risk of moving and give up accrued redundancy benefits and a potential payout if the company sell-up - seems a bit drastic because my 'phone bill has gone up by 31% in 5 years i.e. a very small amount nominally.

Glad my housing costs are inflation proofed.

Graham_Devon

wotsthat wrote: »

During a recession people prefer to accept lagging pay rather than take a risk and change jobs. I've many years of service - why take the risk of moving and give up accrued redundancy benefits and a potential payout if the company sell-up - seems a bit drastic because my 'phone bill has gone up by 31% in 5 years i.e. a very small amount nominally.

Glad my housing costs are inflation proofed.

Theres also the risk that changing jobs = less pay too.

In the area I'm in, new entrants are now getting a lot less than previously.

Field engineers are now being advertised for (and snapped up I may add) at 20k + 5k car allowance. Not so long ago, they were 30k+ jobs with a company car instead of an allowance.

busy_mom_2

My wages certainly haven't gone up 6%. Hubby has not a rise for 5 years and I have been on a three year pay freeze, prior to this I was 3% then 1%. I dream of 6% rise for us both.

Graham_Devon

busy_mom wrote: »

My wages certainly haven't gone up 6%. Hubby has not a rise for 5 years and I have been on a three year pay freeze, prior to this I was 3% then 1%. I dream of 6% rise for us both.

Nearly 6% then.

The 6% is a total over the years 2008-12. Not 6% a year.

busy_mom_2

Graham_Devon wrote: »

Nearly 6% then.

The 6% is a total over the years 2008-12. Not 6% a year.

But I have contributed 5% into my pension over the last two years as a lovely public sector worker.

wotsthat

Graham_Devon wrote: »

Theres also the risk that changing jobs = less pay too.

In the area I'm in, new entrants are now getting a lot less than previously.

Field engineers are now being advertised for (and snapped up I may add) at 20k + 5k car allowance. Not so long ago, they were 30k+ jobs with a company car instead of an allowance.

Maybe the partners of the field engineers are taking part-time jobs? There's some evidence for this in the employment figures. I seem to remember that although pay rises are behind inflation household income, in real terms, is rising.

grizzly1911

wotsthat wrote: »

Maybe the partners of the field engineers are taking part-time jobs? There's some evidence for this in the employment figures. I seem to remember that although pay rises are behind inflation household income, in real terms, is rising.

You may have a point there, hardly progress though.