We'll be £5 worse off every day in 2012

sales queueImagine withdrawing £20 from a cashpoint every day, only to find out that you were a fiver short every time it delivered. How annoying would that be?

But that is effectively what is happening to your money every single day and will continue to happen throughout 2012 when you take into consideration rising energy costs, higher food bills and tax changes.
And the rise in the cost of living is the biggest squeeze on middle incomes for the last 80 years.
Now we finally have a rebuttal to our parents when they tell us we don't know how lucky we are. Seems they don't know how lucky they were!

The biggest shock is the rise in household bills by £900 to £15,912 as figured out by the price comparison website moneysupermarket.com. That 6% rise is three times the average wage increase over the last year.

Not that many of us are familiar with wage increases though we are well aware of the increased bills from the family shop or filling up the car with unleaded.

As if this wasn't bad enough, the bean counters over at accountants Grant Thornton have twigged that thanks to the reduction in the qualifying threshold for tax credits a family with a single income earner on £50,000 loses £545 in tax credits and has to pay an extra £200 a month in National Insurance Contributions.

Add to that the rise in bills and you're looking at extra costs of around £1,650 a year, or £5 a day.

Meanwhile, the folk over at the Centre for Economics and Business Research think tank don't expect things to improve next year and suggest it will probably get worse in the first half of the year as food and fuel bills continue to rise.

It's no surprise that punch-drunk consumers are blowing the budget in the current sales season but it seems the hangover is going to be a doozy.
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