Rising transport costs dominate family expenditure

Rising transport costs dominate family expenditure

Transport costs made up the biggest slice of family household spending last year, according to official figures released today.

The Office of National Statistics (ONS) figures for 2007 show that families spent an average of £61.70 a week on transport, equivalent to 13.4% of the total average household expenditure of £459.10 a week.

Rising petrol prices meant that personal transport, including fuel and servicing family vehicles, cost £28.80 a week, or 47% of all spending on transport, while money spent on rail and tube fares rose to an average £2.50 a week and bus and coach tickets fell to £1.20.

Average weekly household expenditure was £10 more than in 2006 and was highest among households of two adults and two children at £690 a week, the ONS said.

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The lowest expenditure of £165 a week was reported by one person retired households mainly dependent on the state pension.

The ONS annual Family Spending report shows that even before the credit crunch started to bite, families had reduced spending on clothing and package holidays.

Spending on clothes fell to its lowest level in six years, accounting for £22 of the average weekly household spend.

One of the biggest falls in spending was seen in women's underwear with families spending £1.10 a week - 20p less than in 2006.

Spending on package holidays dropped by 40p a week to an average of £13.40, largely as a result of reduced spending on package trips abroad.

However, spending on other recreation remained the second highest outlay most families made each week, adding up to an average of £57.40.

The ONS figures, which are based on a survey of 6,000 households, do not include mortgage repayments, which also increased last year on the back of rising interest rates and the start of the credit squeeze.

Other housing costs, fuel and energy bills totalled £51.80 a week, or 11.3% of average budgets. This figure is likely to be higher this year as a result of two rounds of price rises by gas and electricity companies.

The figures come in the week the chancellor, Alistair Darling, unveiled attempts to get shoppers spending again with a temporary VAT cut to 15% from Monday aimed at putting £12.5bn back in the pockets of consumers.

Average household spending - costs for each week

Transport £61.70

Recreation and culture £57.40Housing, fuel and power £51.80Food and non-alcoholic drinks £48.10Restaurants and hotels £37.20Miscellaneous goods and services £35.30Household goods and services £30.70Clothing and footwear £22Communication £11.90 Alcoholic drinks, tobacco and narcotics £11.20Education £6.80Health £5.70Other expenditure items £79.30

Total expenditure £459.10

guardian.co.uk © Guardian Newspapers Limited 2008