Average household to face £100 monthly shortfall by 2024

The average UK household will be short of £100 a month by 2024 as the cost-of-living crisis continues, according to a report from the Yorkshire Building Society and the Centre for Economics and Business Research (CEBR).

The report says that weekly household spending is set to rise to £705 in just two years' time. However, it expects real weekly incomes to rise to just £680, leaving households short of £25 a week, or roughly £100 a month.

It also states that the rising cost of living has already forced nearly four in ten savers to dip into their savings in the last 12 months.

Stephen White, Interim Chief Executive of Yorkshire Building Society, said: 'We may be emerging from the global pandemic, but our figures indicate we are moving from one crisis to another.

'Inflation is already high and this, coupled with increasing energy price caps and fuel charges, means there could be challenging times ahead for many households.

'Families across the UK are already having to budget carefully in order to make ends meet. Some have accrued savings over the course of the pandemic, which can help foot monthly bills. Others simply do not have the financial resilience to withstand rising costs.'

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