Household income rises - Savings - News - Moneyfacts

News News brings you the latest financial & economic news & reviews of the best products in the UK by our team of money experts.

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 It is now over 6 months old so the content may be out of date.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 Any products featured may be withdrawn by their provider or changed at any time.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

Just 44 savings accounts beat inflation

Inflation recorded another large jump during December, and predictably, this has had a devastating impact on the number of savings accounts that beat it, so much so that you’ll need to lock your money away if you want an inflation-beating return.

Just 47% have money in a savings account

We’re often told of the importance of saving, yet unfortunately, the message doesn’t always get through. Indeed, research shows that just 47% of those surveyed have money in a savings account, and 17% have no savings or investment whatsoever.

How much will you save this year?

Many of us have set savings goals for the year ahead, and planning to budget better and save more will be at the top of many financial resolution lists. But how much are you hoping to squirrel away? Encouragingly, many people have impressive targets.