The disposable income of Britons has fallen by 30 per cent over the course of the last two years, according to new research.
A study by Abbey has revealed that as many as one in ten people are now spending up to 90 per cent of their salaries on basic essentials, which may include rent or mortgage payments and utilities bills.
This leaves an average of £382.21 of disposable income to last each month, compared to 2006 when Britons were left with £541.44 to spend on luxury items.
Callum Gibson, head of Abbey Credit Cards, said: "With the cost of living increasing so drastically in the past two years, in particular the cost of essentials such as food and bills, it's important to make sure that you budget effectively and economise wherever you can."
Meanwhile, Friends Provident has reported that 25 per cent of adults in the UK are now working longer hours, while one in eight have taken on a second job in order to boost their income.
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