Home finances continue to be stretched

Household finances are being hit hard having risen at almost double the rate of inflation over the last decade, new research suggests.

According to Santander, the cost of household bills rose by a staggering 71 per cent between 2001 and 2011.

Gas and electricity bills were found to be the main cause of the problems, the former trebling in price with the latter doubling.

Inflation was found to have risen by a total of 38 per cent, while the average salary rose by just 24 per cent, from £16,964 in 2001 to £21,093 in 2011.

The organisation’s banking director, Carlos Palacios, said: “People have already been forced to make a number of adjustments to their lifestyles to cope with the hikes, and many will struggle to cope with further increases.”

His final comment is mirrored by the fact that one in ten said they would not be able to cope financially if bills were to rise any further over the course of the next 12 months.