Household income rises - Savings - News - Moneyfacts


Household income rises

Household income rises

Category: Savings

Updated: 15/10/2012
First Published: 15/10/2012

This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.

New figures reveal that household income increased by £69 in the second quarter of the year, mainly due to the drop in inflation.

The Office for National Statistics said that the average real household income had increased by 1.6% to £4,510 compared to the first quarter.

Real incomes hit their lowest level in five years at the end of 2011, but as Consumer Prices Index inflation has fallen back, from 4.2% in December 2011 to 2.4% in June, so the strain on household budgets has lessened.

Real household actual expenditure, meanwhile, has remained virtually unchanged, falling by £7 over the period.

A positive sign for the country's savings habits was the fact that gross household savings increased to £18.2 billion, from £16 billion in the first quarter.

Real actual income consists of wages and salaries; income received from pensions, benefits, share dividends, net interest and self employment.

What next?

Compare the best savings rates

Disclaimer: Information is correct as of the date of publication (shown at the top of this article). Any products featured may be withdrawn by their provider or changed at any time.

Related Articles

Savings being used as a festive financial buffer

Good news from RCI Bank UK – its latest research shows that many of us are saving more than we were a year ago, but the question is, will you be dipping into that buffer to cover the cost of Christmas?

6 of the best easy access savings accounts

Easy-access savings accounts are as simple as they sound – they allow you to access your money whenever you need it, without having to give advance notice, and they also allow you to pay into them at any time. Here are six of the best.

Start saving for Christmas… 2017!

Christmas is just around the corner and our annual festive splurging is starting to step up, but are you prepared? It may be too late to start saving for this year’s festive spend, but it’s never too early to start for next year’s!