Spending power dropping

Disposable income has dropped ‘abruptly’ for more than two-thirds of British households, while the number of people struggling to pay their rent or mortgage is at the highest level for 13 years. A report published by the Bank of England shows that an increase in the cost of food, energy and home loans meant that one in three households saw a decrease in their disposable income of £100 or more each month, while 13 per cent of households, up from 9 per cent in 2014, had difficulty in meeting their household costs. And around 16 per cent of households, up from 12 per cent in 2014, said they had cut back on spending because of concerns about accessing credit.