THE average household in Britain is paying out more than twice as much on debt as it has in disposable income, figures revealed yesterday.

Household debt per person has jumped to 133 per cent of disposable income since the first three months of 2013.

Spending on credit card and overdraft interest has peaked since the first three months of 2009.

Since the spring of 2016, spending has outgrown disposable income by £119 per head in real terms.

Office for National Statistics head of inequalities Glenn Everett said: “Despite high levels of employment, rising incomes and spending across UK households, people are not reporting increases in their wellbeing.

“This may be due to worries about rising debt repayments, which could be driving concerns about their future financial situation.”

Average income for the poorest fifth of households increased by 4.8 per cent – equivalent to £589 – between 2011 and 2016.

They spend more than 43 per cent of their total expenditure on food, housing and utilities – much more than other households.

This is while the top fifth of households saw their average income increase by 6.7 per cent – or £4,123 – during those six financial years.

The ONS figures also show that the largest contributors to disposable income for the last year are property and dividends.

Shadow chancellor John McDonnell condemned the government for being “complacent and out of touch” while households are using debt to get by.

“Underemployment remains well above its pre-crisis level, while millions of others are overworked,” he added.

“We need a general election and a Labour government to put right the damage done by nine years of vicious Conservative austerity.”