Belts tighten as income drops

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Depleting disposable income forces consumers to reassess lifestyle choices

Disposable income has fallen for the first time in 11 years, according to research from uSwitch. The comparison website revealed that average disposable income has declined in a year from 35% of the gross household income to 28% due to rises in the prices of household essentials such as gas and petrol. In addition, as income tax rises 6% and social contributions rise 4.6% this year, net household income as a proportion of gross household income has fallen 0.5% since 2007. Tax and National Insurance now account for the highest proportion (21%) of gross household income since 1991. Ann Ro...

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