As inflation crushes wage rises, banks turn off lending taps to households

Office for National Statistics' family spending report shows household spending increase but much is fuelled by debt

There is little for the average household to cheer these days as inflation crushes paltry earnings increases. Inflation is running at 3% while wage rises can manage no more than 2.5%. Worse for the average household, the banks are beginning to turn off the lending taps that have allowed them to boost their incomes with cheap debt.

Things were better in the year to April 2017, according to the number crunchers at the Office for National Statistics, who have lifted the lid on Britain's spending habits in their annual family spending report.