Britons suffer in Cost a lot Britannia

Household finances are coming under increasing pressure, it has been revealed - making it more important than ever that consumers choose the right savings accounts to ensure that their money is looked after as well as possible.

A study conducted by uSwitch, which looked into changing incomes and household outgoings over the last ten years, has found that higher taxes and increasing living costs mean disposable income levels are now at their lowest since the Labour government came to power in 1997.

According to uSwitch, tax has risen by 85 per cent over the last decade, while social contributions have increased by 77 per cent - and as a result, net household income as a proportion of gross income has fallen by five per cent over the period.

Meanwhile, essential household costs have gone up by 42 per cent, contributing to the fact that disposable household income as a proportion of gross income has dropped by two per cent. Mike Naylor, personal finance expert at uSwitch, believes the figures are evidence that British people are in grave financial danger.

"Cool Britannia is now Cost-a-lot Britannia," he said.

"Our pay cheques may be getting fatter, but the chunk that we have to hand over to pay taxes, bills and other living costs is growing even faster. We are working harder, but we are not getting any wealthier - we are running just to stand still.

"With less spending money than at any time over the last ten years, it's more important than ever to take control of your finances. By acting smarter and shopping around for the best deals on the market, consumers can spend more of their hard-earned salaries on the nicer things in life."

One of the products consumers can search for to help manage their finances is a savings account where they can put their day to day savings. By seeking out the best account around savers can ensure they derive maximum benefit from setting aside their hard-earned cash.

Further results of the study include the revelation that the number of households earning less than 60 per cent of the average national household income has risen from 12.1 million to 12.8 million.

While the national average disposable income is £16,262, 73 per cent of UK towns and cities are short of this mark on a collective basis.

These statistics further highlight the need for consumers to be frugal - and to make sure that their savings are well looked after.