Half of families rely on two incomes

Thursday, 27 November 2008 09:01

Almost half of families now have to rely on two breadwinners, meaning millions of households run the risk of losing everything if one income is lost, an insurer has warns.

Scottish Widows has revealed the cost of running a home means that almost half (47 per cent) of households rely on two incomes and this increases to 61 per cent in households with children.

Scottish Widows' protection market director, Richard Jones, said: "The reliance on two incomes is the only way to maintain a decent standard of living for many families and with the rising cost of living this isn't likely to ease off any time soon.

If something should affect the health of either earner that prevents them from working then there may not be enough money to run the home.

"This means families are effectively doubling their risk; therefore they need to ensure they are protected against unforeseen circumstances which could leave them reliant on just one income."

The reliance on debt is also increased in households with children, Scottish Widows said.

The average household with dependent children has £88,500 still outstanding on their mortgage compared to an average of £77,500 for those with no dependent children.

When it comes to short term debt, the average household with dependent children has carried over £9,359 over the last three months compared to an average of £7,223 for those with no dependant children, the insurer added.

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