Family spending up £1,000 a year

THE spending of an average family went up by more than £1,000 last year, an official analysis said yesterday.

The Office for National Statistics said the figure has recovered from the recession, with typical household outlay at its highest level in more than a decade.

The breakdown of spending in the financial year that ended in March 2017 found that a typical home spent £554.20 a week, around £21 more than the year before, after adjusting for inflation.

The last time it was at a similar level was in 2006, before the banking collapse and the downturn that followed.

The extra spending was recorded ‘across the board’, the ONS reported, and there were notable increases in the amounts that went to pay for foreign holidays, restaurants and hotels, leisure time and mobile phones.

Officials said the reasons for the ‘significant’ increase included economic growth and record employment. Low interest rates have encouraged households to spend rather than save.