Britons have £176 less to spend each month as soaring energy bills and food costs pile pressure on household budgets

Britons now have £176 less left over each month than they did last year, data suggests, as the cost of food and bills continues to rise while incomes stagnate. After bills, housing costs and other essential spending the average person has £725.15 remaining, according to comparison website MoneySuperMarket.That is a £175.76 reduction on the £900.91 they reported having in October 2025. Everyday costs such as energy bills and food are rising due to inflation and the war in Iran, meaning they now eat up more of household budgets. The data follows this week's Budget, where Chancellor John Healey left income tax thresholds frozen meaning the point at which people start paying has stayed at £12,570 since 2021. It means more Britons are dragged into paying income tax, or dragged into a higher tax band, when their income increases. Wages rose by 3.7 per cent on average in the last year - but this is only slightly higher than inflation at 3.5 per cent, meaning their pay packet has barely grown in value in real terms. Helen Miller, director of the Institute for Fiscal Studies (IFS), said this week that households faced a 'depressing' outlook and that this decade was set to be the worst for household income growth on record. According to the Resolution Foundation, a think-tank, typical working-age households look set to see their disposable income fall by £1,050, or 3 per cent, between now and 2029. Running low: People in Britain have £175.76 less left each month than they did in October 2025, data from MoneySuperMarket suggestsHow much do people spend each month?In MoneySuperMarket's poll, the average person in the UK reported spending £1,477.85 a month across 31 household bills and everyday outgoings. This was down from £1,657.67 in 2025, and £1,533.80 in 2024.However, reported incomes have dropped faster than spending, meaning the average person has less money left over after covering their monthly costs. Average reported monthly income after tax came in at £2,203.00 this month, down from £2,558.58 in October 2025, a reduction of £355.58, MoneySuperMarket said. The data comes from a recent survey of 8,000 adults across the UK via Opinium.Some 67 per cent of people's income is spent on household bills and every day expenses, it found, against 65 per cent a year ago.To cope with the rise people are cutting spending on new subscriptions, streaming services, gaming and going to the gym.In the shorter term MoneySupermarket said monthly outgoings increased by £23.31 between July and October 2026, from £1,454.54 to £1,477.85, while reported monthly income after tax rose by just £2.50 in the same period. 'That means the average person had £20.81 less left over after bills and outgoings than they had three months ago, MoneySuperMarket said. Our money doesn't stretch as far Charlie Shardlow, left, says her money does not stretch as far as it used to Charlie Shardlow, 30, a sales manager, lives in Stafford with her fiancé, Jordan, 30, and their two children, Luna, three and Rex, one. Charlie told This is Money: 'With two young children, it definitely feels like our money doesn't go as far as it used to. 'There are so many everyday costs to think about, from food shopping to household bills, and it all adds up.'We're still having to think carefully about what we can afford and where we can cut back.'Charlie said she believed she had less money left over at the end of the month now than a year ago and has avoided putting the heating on.She said: 'We've been holding off putting the central heating on because we're conscious of how much it could add to our bills. 'With two young children, obviously we want to keep the house warm and comfortable, but we're also trying to be sensible about when we really need it.'It's frustrating because heating your home shouldn't feel like something you have to think twice about, but when you're already juggling so many household costs, it's another expense you have to factor in.' Where are people feeling the pinch most? The findings from MoneySuperMarket showed that the locations with the highest costs were not always the places where people felt most squeezed. London had the highest monthly outgoings of the cities measured, at £1,703.60. However, higher reported incomes meant Londoners still had an average of £898.90 left each month after their key outgoings, the highest sum out of all locations. At the other end of the scale, Plymouth had the lowest monthly outgoings at £1,299.04, £404.56 less than London. But with reported monthly income after tax of £1,802.83, people in Plymouth had £503.79 left after those costs.The financial squeeze was found to be worst in Norwich, where, according to the findings, people typically had £428.43 left after costs, the lowest of any city measured. In Norwich, people's monthly bills and outgoings absorbed 77 per cent of their reported income.Belfast had the lowest proportion of income committed to monthly outgoings, at 64 per cent, MoneySuperMarket said. Spending power is falling for lower earners The Asda Income Tracker is a data series measuring discretionary household spending power calculated for the supermarket group by a consultancy firm called the Centre for Economics and Business Research (Cebr). Asda's latest income tracker report this week said the average household in Britain had £262 in weekly discretionary income in July to September 2026, £2.61 more than in the second quarter and £9.34 more than in the third quarter of 2025. However it identified a particular squeeze on lower and middle-income households. In the last year, households in the middle income quintile had about £93 in spare cash a week, an annual rise of just 0.6 per cent. This is compared to inflation of 3.5 per cent in September. Those in the lowest quintile saw their weekly disposable income fall by 5.1 per cent to £-76. This means they spend £76 more than the money they have. Sam Miley, head of forecasting and thought leadership at Cebr, said: 'Our modelling suggests there is a drop in the spending power of the middle quintile.' According to the income tracker, while household incomes rose by 3.8 per cent in the past year, rising housing, energy and transport costs meant that spending power in real terms increased by just 2.4 per cent. 'September showed how distant conflict in the Middle East reaches household budgets. Higher fuel prices pushed inflation to 3.5 per cent, while Income Tracker growth slowed to its weakest rate since March,' Miley continued. 'Pressure on household finances looks set to persist. A higher energy price cap and dearer fuel will keep essential costs rising at an elevated rate, while cautious hiring by employers limits any offsetting boost to incomes. 'Rising core inflation also suggests that higher energy costs are increasingly feeding through to prices across the wider economy.' SAVE MONEY, MAKE MONEYUp to £300 cashbackUp to £300 cashback£25-£300 cashback on at least £3004.87% cash Isa4.87% cash IsaTrading 212: 1.27% fixed 12-month bonus£2,500 cashback£2,500 cashback£250-£2,500 cashback when opening SippUp to £150 cashbackUp to £150 cashbackOpen a savings account with at least £5,000Welcome bonusWelcome bonusGet up to £200 when you invest £100Affiliate links: If you take out a product This is Money may earn a commission. 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