5 December 2005
A typical household has to work for half a year in order to pay its essential bills - with gas and electricity bills playing a significant part in an outlay which amounts to 46 per cent of the average net monthly income.
Research from Egg suggests that we spend £888 per month on necessary household bills, with utilities following mortgages, rent and council tax as a source of constant pressure for money earners.
The survey showed that consumers mistakenly tend to believe that homes cost 30 per cent less more to run than they do in reality - effectively meaning that people believe they have £300 more to spend every month than they actually do.
Mark Nancarrow, chief financial officer of Egg, said: "The average consumer believes their home costs 30 per cent a month less to run than it actually does, which often results in failure to budget appropriately and as a result, regularly overspend.
"In order to stay in control of money and know how much is available to spend each month, it is crucial that consumers understand the dynamic between their regular commitments and the money that is left over for spending.
"When domestic bills and other expenses are taken out of the equation, households are said to have an average of £714 per month to spend.
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