2011’s ever increasing bills, complicated tax changes and low interest rates has seen the average middle-class household expenses rise by almost a fiver a day.
Several studies published recently, have confirmed that this year has dealt the tightest squeeze on family’s expenses for some 80 years. 
Price comparison website MoneySupermarket.com revealed in their survey that the average total of household bills shot up by £900 to £15,912 in 2011. The figure is based on all household expenses, including fuel bills, food shopping, home insurance and running a car.
Accountancy firm, Grant Thompson also published a report that showed that the complex changes to tax credits had affected a lot of middle-class families badly. For instance; a family comprising of one worker earning £50,000 a year with a stay at home partner and two children was £545 worse off in tax credit due to changes in the qualifying threshold.
The same family would also have to shell out £200 more in income tax and National Insurance, which coupled with the increase in everyday cost of living expenses and the lack of pay rises and bonuses, has meant a decrease of £1,650 in the family pot over the year, or nearly £5 a day.
However, the real impact of the financial crisis is likely to be higher still due to the increase in VAT to 20% last January. In addition to this, the Centre for Economics and Business Research has predicted that food, petrol and energy prices will continue to rise during the first six months of next year.
In a different study conducted by the Resolution Foundation, it was discovered that any tax cuts to take place in April for low and middle income households would be undercut by tax credit cuts.
Their study showed that a two-children family with a salary of £40,000 a year would actually see a decrease in their income of 8.9% from 2010 to 2012.
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