A new study by comparison website Uswitch has revealed how much the living costs of Brits have changed over time, with Council Tax increasing by an eye-watering 1174% over the past 5 decades.
The study looks at how utilities such as gas and electricity, water and phone bills have changed since the 1970s to see whether you’re better off in 2020 than you would have been in the 1970s.
Based on UK full-time workers in 1970, the average household income 50 years ago was £2,500. The biggest percentage of the average household spend in 1970 was spent on food, with households spending £625 a year, or 25% of the household income.
Interestingly, electricity and gas would have cost 8% of the household spend, a total of £200 a year. Slower and less efficient technology in the 1970s meant that more power was needed to achieve the desired result.
The average UK household income is now £29,000. Many changes throughout the past 50 years have influenced household income, such as the introduction of the national minimum wage in 1998 and the increase in women taking up paid work.
One thing that hasn’t changed much is the household spending on food. This remains the biggest household spend at £2,943.20 a year, accounting for 17.41% of household spending in 2020, a decrease of almost 8% since 1970. Council tax equates for around 7.54% (£1,274.00).
The difference in household spending in 1970 and 2020
| Household Cost | Spending in 1970 | Spending in 2020 | Difference |
| Food | 25% | 17.41% | -7.59% |
| Rent | 10% | 15.47% | +5.47% |
| Insurance | 15.73% | 12.06% | -3.67% |
| Council Tax | 4% | 7.54% | +3.54% |
| Electricity | 8% | 7.57% | -0.43% |
| Savings | 12% | 7.1% | -4.9% |
| Clothing | 7% | 5.87% | -1.13% |
| Student Loans | 0% | 5.56% | +5.56% |
| Petrol | 2.29% | 4.21% | +1.92% |
| Car | 9% | 4.03% | -4.97% |
| TV Subscriptions and License | 0.78% | 3.16% | +2.38% |
| Water | 3.2% | 2.49% | -0.71% |
| Phone | 1.23% | 2.4% | +1.17% |
| Wifi | 0% | 2.15% | +2.15% |
| Pets | 1.4% | 1.08% | -0.32% |
| Childcare | 0.03% | 0.49% | +0.46% |
| Credit Card Fees | 0% | 0.34% | +0.34% |
| Gym | 0% | 0.2% | +0.2% |
| Music | 0.27% | 0.2% | +0.2% |
The full study into household spending over the past 50 years can be found here.
Ben Smithson, personal finance writer at Uswitch, comments:
“Understanding where your money is going every month allows you to make informed decisions about your finances. Seeing how the average household expenditure has changed over the past half a century really highlights changes in trends, priorities, technology and necessities.
“Set some time aside to do a personal audit of your finances every 6-12 months, look at your largest outgoings and see if you could switch to a service that is cheaper. If you’re wanting to take stock of how much you’re spending on your bills and outgoings, check out our handy comparison to see if it can help. Investing even a small amount of time each year to check where your money is going could really save you money.”
seeing as it was “rates” back then and not council tax and water was also included – has this been fully accounted for.
in 1967 a brand new 3 bedroom, semi detached house, with driveway, garage, front and rear gardens in Ryde was about £4000 – the same houses now, show on zoopla at around £185,000 (4825% increase)
wages – example..staff nurses pay was £15 a week in 1971..today that is £482 a week.(3113% increase)
What does that tell you, either houses were cheap in 1970 (they quadrupled in 1975) or that they are too expensive now…my view is the latter -they are getting to high again and need to come back down to be back in line with the affordability of the majority of the market.
Someone’s maths is awry here: if 2020 household income is £29,000, 7.54% Council Tax isn’t £1,274, it’s £2,187. Either way, CT has managed handsomely to exceed inflation.
Possibly more worrying is that we Brits are still determined to have the cheapest food possible.
Well the percentage will soon change due to council tax rises again (gotta keep their pension fund going )
Just read an article on i echo re pay rises and when you see what MR BIG earns his pension pot will be amazing champagne all the way jolly hollyhocks .
Even Boris is only just above him and he is The Prime minister!!!!!!
We must all vote these being out next given chance.
Greedy, self severing and destructive and laughing all the way to the bank with their huge salaries, let alone all the little ‘extras’.
Think you miss typed there
Shouldn’t the be all the BIG extras
Too think nowdays the monthly council tax is like having a small mortgage.
What do we get for our money.
Bins get emptied once a week and the street lighting is poor, being it is solar powered the Council must be saving money by having solar power.
No Council tax should be more than £1000 A year!
Street lighting is not solar powered.
Many places on the mainland have rubbish collection once a fortnight.
Why does a couple living in a Bungalow / House pay the same has a large family of 4 or more.
The larger family have a lot more waste to dispose of, they Park more vehicles along the
Street than a couple etc etc
Because its NOT based on the number of occupants but on the value of the property as at 01/04/1990
Dave and co want more money the useless bunch of idots
No surprise really is it… & what do we get for it, nothing, apart from a council/MP that does what they want, & not what their constituents want!