According to a new report, the family income level in the UK has increased at its slowest pace since December 2010 and people faced increasing difficulties due to an increase in spending.

The family income increased by 1.7 per cent while costs increased at a much faster rate. The electricity bills are now 8 percent higher than the previous year while the spending on essential items grew at 3.3 per cent compared to the year earlier, according to Lloyds TSB spending report for September.

The report indicates that the families now have £8 a month less compared to the same month in the previous year. The figures are disappointing as the report in august had indicated that the pressure on spending might be reduced in the coming months. Lloyds admitted that the Olympic Games in London and an unusually wet weather might have caused some volatility in the figures.

Patrick Foley, chief economist at Lloyds TSB said, “I expect inflation to fall only slightly further over the coming months so any improvement in the situation will need to be driven by growth in incomes and this will depend on the wider economy. The pattern of consumers following rather than driving economic developments appears set to continue.”

Consumer groups are warning that the poor families and the elderly will be affected as the cost of power as well as food and some mortgages are also set to rise.