The average person now has £176 less left in their pocket each month than a year ago, despite spending less on household bills and everyday essentials, according to the latest MoneySuperMarket Household Money Index (HMI).
Average reported monthly outgoings have fallen from £1,657.67 in October 2025 to £1,477.85 today, a saving of almost £180. But average reported monthly take-home income has dropped by £355.58, from £2,558.58 to £2,203.00 over the same period.
Income falls faster than spending
As a result, the average person now has just £725.15 left after covering the 31 household bills and everyday outgoings tracked by the Index, compared with £900.91 a year ago — a reduction of £175.76 a month, or more than £2,100 a year.
Household bills and outgoings now account for 67% of reported monthly income, up from 65% last year. The research shows that spending on energy and water bills has fallen by 7% year-on-year, while car insurance is down 15% and home and contents insurance has fallen by 18%.
Spending cuts across categories
Reported spending on gym memberships and fitness equipment has dropped by 23%, news subscriptions by 18%, gaming by 15% and streaming subscriptions by 12%. Average monthly grocery spending has also fallen by 4%, from £187.90 to £180.20.
But since July, average monthly outgoings have increased by £23.31, while reported take-home income has risen by just £2.50. Vehicle fuel spending has increased by almost 12% over the past three months, while energy and water spending have risen by 2% and 3% respectively, adding further pressure to household budgets ahead of winter.
Expert comment on budget squeeze
Kara Gammell, Personal Finance Expert at MoneySuperMarket, said: “Compared with a year ago, people report spending less on a range of household bills and everyday costs. But reported incomes have fallen even faster, leaving the average person with around £176 less each month after those costs have been covered.
“The regional picture tells a similar story. The places with the highest household costs aren’t always the places where people feel the greatest squeeze. What matters is not just what people spend, but how much income they have left afterwards.
“We’re also starting to see signs that some everyday costs are edging upwards again as we head towards winter. At a time when household budgets remain under pressure, regularly reviewing your outgoings, understanding what you’re paying for and comparing your options can help create some much-needed room in your monthly budget.”
