Cost of living ‘increases for the wealthy’

Affluent Britons are facing an inflation rate twice as large as the government figure, new statistics reveal.

According to research conducted by Heartwood Wealth Management, the richest ten per cent in the country face of inflation of 7.7 per cent, compared to the official rate of 3.1 per cent.

Due to this the average cost of living for these consumers is £88,800, a rise of £6,375.20 since 2004-05, which could impact upon their attempts at debt management and personal loan repayments.

Business forecasting expert Professor Richard Scase of Kent University told the Evening Standard: "Soaring fuel and energy prices have particularly affected those with more cars and bigger houses - the wealthy.

"Meanwhile, by opting out of state provision, they are also being hit by school fee and health insurance hikes."

Rising utility costs were also attributed to the increase in living expenses.

Last week, a Sainsbury’s Bank study indicated annual living costs for the average Briton are to rise by 12 per cent over the course of this year to £11,035.

The findings revealed that as a result many homeowners could find their ability to make repayments on personal loans and other forms of credit squeezed.

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