Families '£8 a week worse off'
A typical family is £8 a week worse off than a year ago, according to research.
Despite average earnings rising by £23 a week during the past 12 months, the average family has 6 per cent less disposable income, according to supermarket group Asda.
The latest figures come as research shows that consumers have seen their monthly outgoings increase by 26 per cent during the past two years driven by higher housing and energy costs.
The research, which was carried out by the Centre for Economics and Business Research, found that the average family has an income of £633 a week, 3.6 per cent more than in May 2007.
But the amount of tax and National Insurance people now pay has soared by 6.5 per cent during the same period to £129 a week, leaving people with £533, just 2.9 per cent more than a year earlier.
Meanwhile, the average cost of essential goods, such as spending on food, clothes, housing, utility bills and transport, has risen by £24 a week during the past 12 months, to £402, leaving people with just £131 disposable income.
Shadow chief secretary to the Treasury Philip Hammond said: "Official inflation statistics show prices rising at 3.3 per cent, but these figures produced by Asda reflect what hard-pressed families actually feel in their wallets.
"Maybe this will make Gordon Brown and his ministers realise why people are feeling so miserable."
A Treasury spokesman said: "This report is misleading. In fact people have seen their tax bill fall in the past year as a result of a cut in the basic rate of tax to its lowest level in 75 years."
He added: "The Government understands people are feeling the pressures of increasing oil and food prices - global food prices have risen by 40 per cent in the last year, and oil prices have doubled.
"These pressures are affecting all countries, and the Government is working with international partners to take action to get these prices down."
© Independent Television News Limited 2008. All rights reserved.
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