Households spend £1,542 every month on utility bills, rent or mortgage payments, the weekly shop and other bills. It equates to annual bill of £24,100.
However, the typical Briton earns an annual salary of £23,244, which after tax only leaves them with £1,497 each month.
The way they\’ve written that makes possible solutions to the puzzle quite easy to find.
The first one could be that people are dipping into their savings in order to fund their living. However, we\’re pretty sure this isn\’t true: outstanding debt is going down, the savings rate is up.
Two other possibilities. Firstly, that the average household has more than one income earner. Thus the comparison of household expenditures to individual incomes doesn\’t mean very much.
The second is that individual incomes don\’t mean very much because we have a benefits system. Such benefits tend not to be included in individual incomes (while they are in household incomes) but they are available to pay household expenses.