Household spending

Average household spending in the North East

Overall average weekly household spending is lower in the North East region than in England, with the average household spending £420 per week in the North East region and £544 in England in 2020/22. This means that the North East expenditure was only 77% of the England figure. Lower household spending in the North East is due to many factors, including lower average earnings in the North East and the lower cost of some important areas of household spending (especially housing).

The distribution of household spending across the major spending areas is similar in the North East and England, with housing, transport and food being the top three areas of expenditure. Proportionally the North East spends slightly less on housing and slightly more on food and transport.

Housing, transport and food were all major areas of spending 10 years ago too, but recreation and culture was also in the top three in the 2010-12 period. Household spending on this area has fallen by 12% taking it out of the top 3 areas of spend in the North East. In absolute terms the largest increase in spending over the last 10 years has been on housing, but the largest percentage increase by far has been on communication, which includes post, telephones and internet subscriptions. 

As a three-year average survey these spending figures will not yet fully reflect the significant increases in the cost of living caused by the recent period of high inflation.
 

Detailed household spending

Higher average spending on housing in England compared to the North East is driven by higher spending on rent and housing maintenance and repair. The regional spend on utilities was broadly similar in in the North East region in 2020/22 to the national average. 

The purchase of fuel for vehicles and second-hand cars are the two major sources of transport spending in the North East region (with spending on second hand cars averaged to a weekly figure). The major areas of spend were the same as nationally, although the North East spends only half of the national average on rail and tube fares, likely due to the greater use of public transport in London in particular.

Households’ food spend in the North East was spread across many different foodstuffs and non-alcoholic drinks. There were 17 items on which households spent at least £1 per week on average, with the highest spend being on other meats, bread, rice and cereals, and buns, cakes and biscuits. The distribution of spending on foodstuffs in the North East was broadly similar to the national average.