Family income rises but so does debt

UK  families are continuing to feel the financial pressure despite an income increase.

According to the latest Aviva Family Finances Report, the net income for UK families has increased by 7 per cent since this time last year. This is a rise from £1,937 to £2,066.

But households made up of divorced, separated or widowed parents saw a drop in their monthly income by 22 per cent.

This time last year their average monthly income was £1,387. Now, it has fallen to £1,075.

Family debts have also increased by 48 per cent on last year.

Spokesperson for Aviva, Louise Colley says:“Families in the UK are still very concerned by the rising cost of living and levels of unemployment. While average incomes have increased over the past year, the prices of essential goods and services have also increased, meaning that families are struggling to keep up. Many appear to have acclimatised to this economic environment by shopping around and seeking to minimise their spending in certain areas. However, at the same time there are still a worrying number of families with insufficient savings or large debts.”