Research by uSwitch.com has revealed that UK households could be out of pocket by £21 billion this year.

According to research, the cost of living in the UK has gone up 9% (£1,783) a year compared with an increase in average wages of only 3.4% (£533), leaving UK households out of pocket by around £21 billion.

Online price comparison service, uSwitch, carried out the research as prices in the UK have increased dramatically – food shopping bills have risen 11% in the last year, while the average cost of a pint of beer looks set to hit £4.

Mortgages and unleaded petrol prices have also risen, with clothing and footwear among the few items that have experienced a fall in prices. This will be of little comfort to police officers, nurses, civil servants and teachers who are revealed to be among the worst off when it comes to wage increases.

Ann Robinson, Director of Consumer Policy at uSwitch.com, commented: “This is crunch time for UK households as we face up to a downturn in the economy, the news of below-inflation pay rises and the reality of having less money in our pockets. We are working harder, but are certainly not getting any wealthier.

“Hikes in taxes, the cost of food, utility bills and social contributions over the last decade have outpaced the overall rise in income levels, to push disposable incomes in the UK to their lowest level in a over a decade. Today’s news indicates that things could get a lot worse before they get better.”

In light of the survey results, consumers are being encouraged to budget and cut costs within their household expenditure.