Chapter 5: Weekly household expenditure, an analysis of the regions of England and countries of the United Kingdom

Abstract

Chapter 5 presents a commentary of weekly household expenditure for the years 2009 to 2011 using data mainly from the Living Costs and Food Survey and on occasions from other sources to provide support to analysis. Chapter 5 focuses specifically on English regions and constituent countries of the UK. Household expenditure on different expenditure categories is observed and key variations are analysed.

Key points

•  Regional differences in expenditure on food and non-alcoholic drinks may reflect income differences. Regions that had lower levels of income spent, as a percentage of total expenditure, more on cheaper foods than regions with higher levels of income.

•  Households in Northern Ireland spent more, as a proportion of total spending, than households from any other country of the UK on clothing and footwear.

•  Households in London spent the least on transport as a whole, despite spending the most on transport services (mainly public transport) as a proportion of total spending; this is because London has the largest and most used transport link in the UK.

•  There were variations in expenditure between households living in urban and rural areas. Expenditure on transport between the two areas provided the largest variation in spending; rural households spent more on transport than urban households.

Introduction

This chapter gives an overview of expenditure by Classification of Individual COnsumption by Purpose (COICOP)¹. The differences in expenditure between rural and urban households are examined. A more in-depth commentary of weekly household expenditure for regions of England and countries of the UK by different categories of expenditure is also provided. Possible explanations for key differences are put forward.

The Classification of Individual COnsumption by Purpose (COICOP)² breaks household expenditure down into 12 different categories as follows:

1.   Food and non-alcoholic drinks³*
2.   Alcoholic drink, tobacco and narcotics*
3.   Clothing and footwear*
4.   Housing (net), fuel and power
5.   Household goods and services
6.   Health
7.   Transport*
8.   Communication
9.   Recreation and culture
10. Education
11. Restaurants and hotels
12. Miscellaneous goods and services

In addition to these COICOP categories, a further category, other expenditure items, is also included in estimates of total expenditure.

Notes for Introduction

1. COICOP is outlined in the overview (chapter 1) part of the 2012 Family Spending publication.
2. More information on is available the classification of expenditure items.
3. Categories of expenditure that are analysed are followed by an asterisk.

Total weekly household expenditure

The Living Costs and Food Survey provides data in three year aggregates for the regional estimates - this publication presents UK figures for 2011 and figures for UK regions and countries for 2009-2011 combined. Table 5.1 shows the highest and lowest weekly household spending regions and countries for each category of expenditure covered.

Table 5.1 - Highest and lowest household spenders by region or Country, 2009-11

Lowest weekly expenditure Highest weekly expenditure UK Commodity or service Region/ Country £ Region/ Country £ £ 1.   Food and non-alcoholic drink North East 45.70 London and Northern Ireland 57.90 53.40 2.   Alcoholic drink, tobacco and narcotics London 10.10 Northern Ireland 16.50 11.70 3.   Clothing and footwear East Midlands 18.80 Northern Ireland 40.90 22.00 4.   Housing (net) fuel and power North East 46.20 London 91.30 60.30 5.   Household goods and services Wales 22.10 London 34.10 28.90 6.   Health Wales 3.10 South East 8.50 5.70 7.   Transport North East 50.10 South East 74.80 63.00 8.   Communication North East 11.10 London 15.90 12.70 9.   Recreation and culture North East 50.50 South East 71.40 59.80 10. Education North East 3.20 London 15.70 8.00 11. Restaurants and hotels Wales 31.80 London 53.30 39.10 12. Miscellaneous goods and services Wales 28.10 South East 43.90 36.50

Table source: Office for National Statistics

Table 5.1 shows that London was the region with the highest household spending in six out of the 12 categories; households in the North East were the lowest spenders in six out of the 12 categories. These findings are not surprising because London had the largest weekly expenditure and the North East the smallest. This is reflective of the North-South divide in income; households in the south on average have higher disposable income levels than those in the North.

Table 5.2 - Highest and lowest household spenders by region or country as a percentage of total, 2009-11

	Lowest weekly expenditure (as a percentage of total expenditure)		Highest weekly expenditure (as a percentage of total expenditure)		Percentage points difference between lowest and highest spenders	Average UK weekly expenditure (as a percentage of total expenditure)1
Commodity or service	Region/ country	%	Region/ country	%	Percentage points	%
1.   Food and non-alcoholic drink	London	10.1	Wales	13.2	3.1	11.3
2.   Alcoholic drink, tobacco and narcotics	London	1.8	Northern Ireland	3.4	1.6	2.5
3.   Clothing and footwear	South East	4.0	Northern Ireland	8.4	4.4	4.7
4.   Housing (net) fuel and power	Northern Ireland	10.2	London	15.9	5.7	12.8
5.   Household goods and services	Wales	5.5	Yorkshire and The Humber	6.7	1.2	6.1
6.   Health	Wales	0.8	South East	1.6	0.8	1.2
7.   Transport	London	11.6	West Midlands	14.5	2.9	13.4
8.   Communication	South East	2.5	North East	2.9	0.4	2.7
9.   Recreation and culture	London	10.6	Yorkshire and The Humber	13.9	3.3	12.7
10. Education	North East	0.8	London	2.7	1.9	1.7
11. Restaurants and hotels	East Midlands	7.8	Northern Ireland	10.0	2.2	8.3
12. Miscellaneous goods and services	Wales	7.1	North West	8.2	1.1	7.8

Table notes:

1. The total includes "other expenditure items" (not shown) and so percentages may not sum to 100.

Table 5.2 shows that households in London spent proportionately the least in four of the expenditure categories, which was a higher number of categories than any other English region. Table 5.2 also shows that there were only small differences in proportionate spending on different expenditure categories between English regions and countries in the UK. This could be indicative of similar household viewpoints on spending priorities across the UK.

The largest percentage point difference between the highest and lowest proportionate spenders came in the housing (net) fuel and power expenditure category. The main reason for this large difference is that, the £52.90 spent weekly on net rent for households in London is considerably more than the £15.90 spent by households in Northern Ireland. The figures for net rent (which accounts for benefits for example) are averaged across all households, not just rent paying ones.

Overall, households spent more on transport than any other expenditure category; which reflects rises in fuel costs. Education was the category on which the least amount was spent.

The percentage of total weekly spending on food and drink varied from 10.1% for households in London to 13.2% for those in Wales. There was little variation in the amount households spent on food and non-alcoholic drink, therefore any differences in the amount spent as a proportion of total weekly spending on food and non-alcoholic drink is most likely the result of the difference in the amount households spent per week in total.

In percentage and absolute terms households in Northern Ireland spent the most on alcoholic drink, tobacco and narcotics (3.4%; £16.50) whilst those in London spent the least (1.8%; £10.10). 

Households in Northern Ireland spent 8.4% of their total weekly expenditure on clothing and footwear. This is more than double the proportion of weekly spending by households in the South East (4.0%).

Households in the West Midlands spent, as a percentage of total weekly expenditure, the most on transport (14.5%) whilst households in London spent the least (11.6%); reflecting the fact that London has the lowest levels of car ownership of any region². However in terms of actual weekly spending, households in the North East were the lowest spenders on transport (£50.10) compared to households in the South East (£74.80) who spent the most.

Across countries and regions, spending on restaurants and hotels only varied by 2.2 percentage points with households in the East Midlands spending the least (7.8%) and Northern Ireland the most (10.0%).

 
Map 5.1 shows the difference between total weekly household expenditure (by country and region) and the average total weekly expenditure of households in the UK (£470.70). Weekly household expenditure was greater than the UK as a whole in the East of England, London, the South East, the South West and Northern Ireland. This reflects the fact, with the exception of Northern Ireland, that these areas had the highest levels of weekly disposable income. Households in Northern Ireland spent more than the UK figure despite having had a lower disposable income.

Notes for Total weekly household expenditure

1. Car ownership data from 2011 Census.

Rural and urban household expenditure

Rural and urban areas are examined in more detail to identify differences in spending patterns. For example, people who live in rural areas tend to travel further to places such as supermarkets and workplaces, and so it would be expected that households in rural areas spent more on transport.

Table 5.3 - Weekly household expenditure by rural and urban areas, Great Britain, 2009-11

	Rural			Urban
Total expenditure (£)	510.50			458.30
Commodity or service	Household weekly spending (£)	Percentage of total expenditure(%)1		Household weekly spending (£)	Percentage of total expenditure(%)1
1.   Food and non-alcoholic drink	57.60	11.3		52.00	11.3
2.   Alcoholic drink, tobacco and narcotics	13.00	2.5		11.10	2.4
3.   Clothing and footwear	21.30	4.2		21.50	4.7
4.   Housing (net) fuel and power	58.30	11.4		61.30	13.4
5.   Household goods and services	32.90	6.4		27.80	6.1
6.   Health	6.80	1.3		5.30	1.2
7.   Transport	77.40	15.2		58.80	12.8
8.   Communication	12.80	2.5		12.70	2.8
9.   Recreation and culture	68.80	13.5		57.20	12.5
10. Education	8.30	1.6		7.90	1.7
11. Restaurants and hotels	39.00	7.6		38.80	8.5
12. Miscellaneous goods and services	39.60	7.8		35.50	7.7

Table source: Office for National Statistics

Table notes:

1. The total includes "other expenditure items" (not shown) and so percentages may not sum to 100.

To aid interpretation, highest weekly spending in rural and urban areas by category is highlighted in the Excel spreadsheet download of table 5.3 above. Table 5.3 shows that households in rural areas spent £510.50 a week, 11.4% or £52.20, more than households in urban areas (£458.30).

Of the 12 expenditure categories households in rural areas spent the most on transport (£77.40 or 15.2% of total weekly expenditure); whereas those in urban areas only spent £58.80 (12.8% of total weekly expenditure). This difference in spending is in line with expectations because those in rural areas generally travel further for work and leisure. It may also reflect a lack of public transport in rural areas when compared with urban areas.

The next part of the urban-rural analysis utilises a different system of classifying geographic areas. This section focuses on the areas within two of the seven area categories defined by Output Area Classification (OAC)¹. This classification groups output areas into clusters based on similar characteristics. Here, the focus is on areas categorised as City Living (supergroup 2) and areas categorised as Countryside (supergroup 3). All data for areas defined by their output classification in this release are for the year 2011 only.

By focussing on the most densely populated sections of urban areas and the least densely populated sections of rural areas a further insight into urban and rural weekly household spending can be gained. The purpose of this is to highlight how spending differences may occur between households who live in the most extreme urban or rural areas. This can be seen in table 5.4.

Table 5.4 - Weekly household expenditure by City Living and Countryside, United Kingdom, 2011

		City living			Countryside			Difference
Commodity or service		Household weekly spending (£)	Percentage of total expenditure(%)1		Household weekly spending (£)	Percentage of total expenditure(%)1		In £'s spent	In % of total weekly expenditure
1.   Food and non-alcoholic drink		47.90	9.5		63.00	12.5		15.10	3.0
2.   Alcoholic drink, tobacco and narcotics		10.80	2.1		12.90	2.6		2.10	0.5
3.   Clothing and footwear		26.30	5.2		24.40	4.8		1.90	0.4
4.   Housing (net) fuel and power		111.90	22.1		70.60	14.0		41.30	8.1
5.   Household goods and services		29.30	5.8		35.70	7.1		6.40	1.3
6.   Health		9.60	1.9		8.90	1.8		0.70	0.1
7.   Transport		67.60	13.4		94.00	18.7		26.40	5.3
8.   Communication		15.50	3.1		13.90	2.8		1.60	0.3
9.   Recreation and culture		75.40	14.9		79.80	15.9		4.40	1.0
10. Education		9.30	1.8		9.40	1.9		0.10	0.1
11. Restaurants and hotels		57.90	11.4		44.30	8.8		13.60	2.6
12. Miscellaneous goods and services		44.70	8.8		46.30	9.2		1.60	0.4

Table source: Office for National Statistics

Table notes:

1. The total includes "other expenditure items" (not shown) and so percentages may not sum to 100.

To aid interpretation, highest weekly spending in City Living and Countryside areas by category is highlighted in the Excel spreadsheet download of table 5.4 above. Table 5.4 shows that there are some key similarities and differences for some expenditure categories.  Households in Countryside areas spent proportionally more on transport than those in City Living areas; this is a greater difference than when urban and rural areas were compared. This supports the likelihood that household members living rurally spent more on transport as a result of having to travel further for everyday activities. One key difference was in the food and non-alcoholic drinks expenditure category where, proportionately, households based in Countryside OAC supergroup areas spent more than those in City Living areas.

Figure 5.1 shows the amount households in Countryside and City Living areas spent as a percentage of total expenditure on food and non-alcoholic drink.

Figure 5.1 shows the amount households in Countryside and City Living OAC supergroup areas spent on food and non-alcoholic drink as a percentage of total expenditure per week. It shows that those households in City Living areas and Countryside areas spent different amounts proportionately on food and non-alcoholic drinks. This could partly be a reflection of higher household sizes in Countryside OAC supergroup areas (2.4 people compared with 2.1 people in City Living areas).
These differences were not a reflection of income because households in the City Living OAC supergroup had a gross weekly income of £962.70 which was £110.80 higher than those living in Countryside areas (£851.90). One reason for this difference may have been that households in City Living areas spent proportionately more on food and non-alcoholic drink consumption in restaurants and hotels than those in Countryside areas, and hence there was less need to buy from food stores.

Households in areas classified as City Living spent proportionately more (at 11.4%) on restaurants and hotels than households in the Countryside (8.8%). Cities offer many restaurants and other eating establishments whereas people in the countryside may need to travel greater distance to similar establishments (even to get to local pubs that offer food); this could play a large part in the number of times household members in countryside areas go out to dine.

Notes for Rural and urban household expenditure

1. Output area classification (OAC) definition.
2. Further information on City Living households (supergroup 2).
3. Further information on Countryside households (supergroup 3).

Household expenditure on food and non-alcoholic drinks

The food and non-alcoholic drink expenditure category is examined for different patterns in households’ expenditure on certain food types. Even though variations in the amount households in different countries or regions spent on food and non-alcoholic drink was small, there were observable patterns when the expenditure category was broken down into its constituent food types.

Table 5.5 shows household spending on food and non-alcoholic drink by households in the different countries of the UK, the table also presents the average number of people per household by country.

Table 5.5 - Weekly household spending on food and non-alcoholic drinks, 2009-11

Country	Food and non-alcoholic drinks (£) per week	Average number of people per household
England	53.50	2.4
Wales	52.60	2.3
Scotland	51.60	2.2
Northern Ireland	57.90	2.5
UK	53.40	2.3

Table source: Office for National Statistics

Table 5.5 shows that households in Northern Ireland spent the most weekly on food and non-alcoholic drink at £57.90. This is despite having the lowest disposable income of all the UK countries. One contributory reason why households in Northern Ireland spent more on food than the other countries is because of the higher amount households spent on meat (including beef on which households in Northern Ireland spent £3.00 per week, over £1.00 per week more than any other country). A likely reason why households in Northern Ireland spent more on food is because they had the highest number of people living in each household (2.5 people). Scotland, which spent the lowest amount on food per household, had 2.2 people living in each household; this is lower than any other country in the UK. Table 5.5 shows that when observed per person, individuals in Scotland actually spent more per week than individuals in any other country in the UK on food and non-alcoholic drink.

Figure 5.2 shows weekly spending of households in English regions on food and non-alcoholic drink. Overall, households in England spent £53.50 per week on food and non-alcoholic drink.

Figure 5.2 shows that households in London spent more on food and non-alcoholic drinks than any other English region; there are several possible reasons for this. Firstly, household members in London may pay more because they are more likely to shop in smaller food stores that tend to be more expensive than larger supermarkets.  Second, retail space and its associated costs in London are more expensive resulting in costlier food items than in other regions.

On average, London had a higher number of people living in each household than other English regions. Households in London and Northern Ireland both had on average 2.5 people per household and both spent the highest weekly amount on food and non-alcoholic drinks (£57.90). Households in the North East spent the lowest amount of any English region each week on food (£45.70); this again could partly be the result of the smaller number of people in each household as recorded in the survey. The North East had the lowest number of people per household (2.2) of any English region. It may also be a reflection of the fact that households in the North East had the lowest expenditure levels.

However, households in the North East and other low income areas such as Yorkshire and The Humber may have spent less on food and non-alcoholic drinks because of the type of food they consume.

Table 5.6 shows the amount households in the English regions spent on buns, cakes and biscuits and fresh fruit and vegetables as a percentage of total expenditure.

Table 5.6 - Proportions of weekly household expenditure on buns, cakes, biscuits, chocolate and confectionery products and fresh fruit and vegetables, 2009-11

English Region	Buns, cakes, biscuits etc. (%)	Fresh fruit and vegetables (%)
North East	1.3	1.4
North West	1.2	1.4
Yorkshire and The Humber	1.3	1.4
East Midlands	1.3	1.6
West Midlands	1.3	1.5
East	1.1	1.6
London	0.9	1.6
South East	1.1	1.5
South West	1.3	1.6

Table source: Office for National Statistics

Table 5.6 shows that households that spent a higher proportion of weekly expenditure on fresh fruit and vegetables were among the lower spenders (as a proportion of total expenditure) on buns, cakes and biscuits in all regions. The regions that spent proportionately the most on buns, cakes and biscuits also tended to be regions with lower weekly total expenditure.

Table 5.7 shows the amount of grams of vegetable, fruit and confectionery consumed by the average person per week in the English regions. These figures are drawn from Defra’s Family Food publication, which uses LCF data to produce estimates of food consumption.

Table 5.7 - Grams per person per week consumed of vegetables, fruit and confectionery, 2008-10

English Region	Vegetables (grams)	Fruit (grams)	Confectionery (grams)
North East	1,006	944	142
North West	974	1,003	136
Yorkshire and The Humber	1,065	1,035	134
East Midlands	1,185	1,180	137
West Midlands	1,070	998	136
East	1,177	1,266	136
London	1,188	1,337	96
South East	1,185	1,243	125
South West	1,241	1,284	138

Table source: Environment, Food and Rural Affairs

Table 5.7 shows that per week the average person in the North East consumed the least amount of fruit and the second least amount of vegetables (only the North West consumed less). Those in the North East on average also consumed the highest amount of confectionery. People in London consumed the highest amount of fruit at 1,337 grams per person per week, given that households in London spent more than any other on fresh fruit this is perhaps unsurprising.

Overall, households in regions and countries with a higher number of people spent the most on food and non-alcoholic drink; an example of this is Northern Ireland where households spent more than any other UK country and also had the highest number of people per household. Regions that contained households with lower incomes spent less on fresh produce such as fruit and vegetables and spent more on less healthy foods such as cakes, buns and biscuits when compared with other English regions. The opposite is true for regions with households that had higher incomes such as London, where households spent more on fresh fruit and vegetables.

Household expenditure on alcoholic drink, tobacco and narcotics

Household expenditure on alcohol brought home, tobacco and narcotics¹ is covered in this section. The alcoholic drinks sub-category covers spending on all alcoholic drinks that are brought home. The tobacco and narcotics subcategory covers spending on cigarettes, cigars and other tobacco products and narcotics.

Figure 5.3 shows household expenditure (as a percentage of total expenditure) on alcoholic drink, tobacco and narcotics of the UK and its constituent countries.

Figure 5.3 shows that households in Northern Ireland spent proportionately more on alcoholic drink, tobacco and narcotics than any other country. For that type of expenditure, households in England spent proportionately less than Wales, Scotland and Northern Ireland and were the only ones to have spent proportionately less than the UK figure of 2.5%. It is important to remember that households in England make up the majority of the UK figure. The main difference in spending on alcoholic drink, tobacco and narcotics (as a proportion of total weekly expenditure) between households in England and Northern Ireland is the result of the difference in the amount both spent proportionately on tobacco and narcotics per week. Households in Northern Ireland (1.9%) spent proportionately over double that of households in England (0.9%).

Households in Northern Ireland were the only UK country to have spent more weekly on tobacco and narcotics (£9.10) than on alcoholic drinks (£7.40) per week.

Table 5.8 shows the percentage of a countries adult population that define themselves to be regular smokers.

Table 5.8 - Cigarette smoking among adults aged 16 and over, 2008

United Kingdom country	Males (%)	Females (%)
England	21	20
Wales	20	21
Scotland	23	24
Northern Ireland	26	23

Table source: Office for National Statistics

Table 5.8 shows the percentage of males and females aged 16 and over who regularly smoke. This table has been included because the prominence of regular smokers influences the amount households spent on tobacco based items.

Table 5.8 shows that 26% of Northern Ireland’s male population were regular smokers; this is higher than England, Wales and Scotland. Scotland spent the second highest amount on tobacco and narcotics and had the highest percentage of regular female adult smokers (24%). This was just above the percentage of regular female smokers in Northern Ireland (23%).

England had 1 percentage point more regular male smokers and 1 percentage point less regular female smokers per week than Wales. Weekly, households in both England and Wales spent £4.30 on tobacco and narcotics; due to the similar proportion of smokers in England compared with Wales, this is unsurprising. The reason that households in England spent proportionately less than households in Wales is because of the higher total weekly expenditure in England.

Figure 5.4 shows the proportionate spending on alcoholic drink, tobacco and narcotics and the percentage of regular male smokers² aged 16 and over by the countries of the UK. This figure combines LCF expenditure data with data on smoking prevalence³.

 

Figure 5.4 shows that Northern Ireland had the highest percentage of male smokers and spent proportionately the highest amount on alcoholic drinks, tobacco and narcotics.

Figure 5.5 shows the percentage of total household spending in the English regions that is spent on alcoholic drink, tobacco and narcotics per week.

Figure 5.5 shows that weekly household spending in England on alcoholic drink, tobacco and narcotics out of all expenditure was 2.4% of total expenditure. Households in the North East spent proportionally the highest amount on alcoholic drinks, tobacco and narcotics. One reason for this is that, despite having the lowest total weekly household expenditure, households in the North East spent £2.50 a week on beer, lager, cider and perry (brought home) which is higher than any other region. As a proportion of total expenditure households in the London region spent the least on the alcoholic drinks subcategory (which is alcohol that is consumed at home).

Overall, the majority of regions and countries spent between 2 to 3% (of their weekly household expenditure) on alcohol, tobacco and narcotics. Only Northern Ireland (3.4%) spent over 3% and only London (1.8%) spent under 2%.

Notes for Household expenditure on alcoholic drink, tobacco and narcotics

1. Data collected for household expenditure on alcohol, tobacco and narcotics may be vulnerable to under-recording in some cases due to the sensitive nature of the expenditure category.

2. Self defined regular smoker, United Kingdom Health Statistics 2010.
3. Source: United Kingdom Health Statistics 2010, ONS; Northern Ireland Statistics and Research Agency.

Household expenditure on clothing and footwear

Households in the UK spent £22.00 per week on clothing and footwear over the period 2009-2011. There were both regional and country based variations in the amount households spent on clothing and footwear.

Table 5.9 shows households in UK countries' weekly expenditure on clothing and footwear.

Table 5.9 - Household expenditure on clothing and footwear as a percentage of total expenditure, 2009-11

Country	Clothing and footwear (%)
England	4.5
Wales	5.2
Scotland	5.1
Northern Ireland	8.4
UK	4.7

Table source: Office for National Statistics

Table 5.9 shows that households in Northern Ireland spent considerably more proportionally than any other country of the UK on clothing and footwear. This is despite households in Northern Ireland having the lowest disposable income of any UK country, while England had the highest disposable income. Households in England spent proportionally the least of any country on clothing and footwear and were also the only country to have spent below the figure for the UK.

Figure 5.6 shows the weekly proportionate spending on clothing and footwear in the English regions.

Figure 5.6 shows that weekly proportionate spending for households in England was 4.5% and out of all the English regions the North East spent proportionally the most on clothing and footwear. Households in the East Midlands, East of England, South East and South West all spent proportionately less than the English figure with households in the South East only spending 4.0% of their weekly expenditure on clothing and footwear.

Retail space in London is more expensive than in other regions; therefore one might expect households in London to have spent more than other regions on clothing and footwear. Clothing shops are likely to charge a higher amount for the same item of clothing to offset additional costs present in London.

Overall, households in Northern Ireland spent a considerable amount more on clothing and footwear than any other country. Out of all the English regions, households in the North East spent the most on clothing and footwear as a proportion of total expenditure (5.7%).

 

Household expenditure on transport

Households in different regions show different patterns for the type of transport they use. This can be influenced by the available transport links. Transport is examined to highlight the patterns in different countries and regions.

Households in London spent the most on transport services (which included bus, rail, tube and other forms) and the least on the operation of personal transport (which included petrol, diesel and other motor oils). This is a reflection of the working culture and transport system in London. Household members living and working in London tend not to drive a car in favour of using public transport where an oyster card¹ may be used to make payment more convenient for commuters.

Table 5.10 shows household expenditure on transport as a percentage of total expenditure per week.

Table 5.10 - Weekly household expenditure on transport as a percentage of total weekly household expenditure, 2009-11

Country	Purchase of vehicles (%)1	Operation of personal transport (%)2	Transport services (%)3	Total (%)
England	4.2	7.0	2.2	13.3
Wales	4.0	8.1	1.4	13.5
Scotland	4.5	6.3	3.1	13.9
Northern Ireland	1.8	8.8	2.3	12.8
UK	4.1	7.0	2.3	13.4

Table source: Office for National Statistics

Table notes:

1. The purchase of vehicles includes the purchase of new and second-hand cars and vans and the purchase of motorcycles and other vehicles.
2. The operation of personal transport includes spending on spares and accessories; petrol, diesel and other motor oils; repairs and servicing; and other motoring costs.
3. Transport services include spending on rail and tube fares; bus and coach fares; combined fares; and other travel and transport .

Table 5.10 shows that in total, households in Scotland spent proportionally more than any other UK country on transport.  This was mainly attributable to them spending proportionally the most on the purchase of vehicles and transport services categories. It could also be of interest to note that households in Scotland spent proportionally less than households in any other UK country on the operation of personal transport.

Table 5.11 shows the percentage of households in the countries of the UK that have a car or van.

Table 5.11 - Percentage of households that own a given number of cars or vans, 2009-11

Country	No cars/vans	One car/ van	Two cars/ vans	Three or more cars/vans
England	24	44	26	6
Wales	25	44	25	6
Scotland	31	42	23	4
Northern Ireland	23	44	26	7
UK	25	44	25	6

Table source: Office for National Statistics

Table 5.11 shows that a lower percentage of households in Scotland owned one, two or three and more cars when compared with households in all other UK countries. This means that a higher percentage of households in Scotland were without a car or van. This could be an explanation as to why households in Scotland spent proportionally less on the operation of personal transport.

Households in Northern Ireland spent proportionately the most on the operation of personal transport subcategory (8.75%) and the least, proportionately, on the purchase of vehicles (1.8%).

Table 5.12 has been extracted from the AA Affairs Fuel Price Report and shows the price of diesel and petrol in the UK and its countries.

Table 5.12 - Price of diesel and petrol(1), 2011

Fuel Type	Average for English regions2	Wales	Scotland	Northern Ireland	UK
Unleaded 95 octane (pence per litre)	135.6	135.6	135.8	136.7	135.7
Diesel (pence per litre)	139.7	139.9	140.5	140.8	139.9
Super unleaded (pence per litre)	143.5	141.3	141.8	143.9	143.1

Table notes:

1. Table Source: Public Affairs Fuel Price Report, the AA

2. Figures for England are calculated as the average price for all 9 English regions.

In August 2011 the AA reported that Northern Ireland had the highest diesel price of any UK country at 140.8 pence per litre. Table 5.12 also shows that Northern Ireland had the highest prices for unleaded and super unleaded petrol for any UK country by 1 pence per litre and 0.8 pence per litre respectively.

The price of fuel in Northern Ireland may be higher because of the increased cost of importing refined oil from mainland Britain. There are also likely to be fewer supermarkets and garages in largely rural areas, reducing competition. This may also be the case for households in the highlands of Scotland and the South West: both of these areas are dominated by large areas of rural land.

Figure 5.7 shows the percentage of total household spending that was spent on transport for the nine English regions. As a percentage of total expenditure, households in England spent 13.3% on transport making it the highest expenditure category.

Figure 5.7 shows that households in London spent the least on transport, as a proportion of total expenditure. Earlier in this chapter it was seen that households living in urban areas may have spent less on transport because of various factors; these include having to travel a lesser distance to reach everyday activities and services. These factors, combined with households in London having a higher weekly spend explains why those in the London region spent in percentage terms less than any other English region.

Households in the West Midlands spent the most on transport as a proportion of total expenditure, followed by the South West and East Midlands. It's interesting to note that per person per year those in the South West make more trips than any other as shown in Table 5.13 which shows the average distance per trip for the average commuter in the English regions.

Table 5.13 show the number of annual trips made per person per year by distance and English region, including trips made for commuting.

Table 5.13 - Trips per person per year, 2009/2010 (1)

English region	0 to under 5 miles	5 to under 50 miles	50 to under 100 miles	100 miles and over	All lengths
North East	596	331	10	6	944
North West	694	278	8	6	985
Yorkshire and The Humber	679	294	11	7	991
East Midlands	633	321	14	7	975
West Midlands	644	295	9	8	957
East	598	343	16	6	963
London	589	240	7	5	841
South East	672	325	18	6	1021
South West	681	324	14	10	1028

Table notes:

1. Table source: Department for Transport, National Travel Survey

Table 5.13 shows that per person per year, the South West made more trips than any other English region. This will have influenced the amount households spent on transport.

Households in the South East spent more per week on transport than those in the South West; this is despite individuals in the South West having made more trips. Households in the South East may have spent more because the cost of travelling at peak times may be higher there when compared with peak time travel in the South West. This is because there are more major cities and urban areas in the South East which naturally means a higher concentration of jobs in certain areas. Higher levels of congestion, as experienced by commuters in the South East, naturally results in greater fuel costs and therefore greater expenditure. Households in the South East spent more per week on transport (£74.80) than any other English region in actual terms.

Map 5.2 shows the amount English regions, Wales, Scotland and Northern Ireland spent on the operation of personal transport which includes petrol, diesel, other motor oils, and other running costs of vehicles

Map 5.2 shows that the two regions that neighbour London (the South East and the East of England) spent the most on the operation of personal transport when compared with the other English regions. With the exception of London, whose households spent the least, households in regions further away from London tended to spend the least on the operation of personal transport.

There are many reasons why households in London spend relatively little on the operation of personal transport; one being that London has the largest public transport link within the UK. Another reason why many choose not to drive in London is the costs associated with congestion. The congestion charge, extra time spent travelling and higher fuel costs are all negative factors that influence the use of personal transport in London.

Households in Northern Ireland spent the most on the operation of personal transport per week out of all the UK countries; this may partly be because of the higher price of fuels in Northern Ireland.

Notes for Household expenditure on transport

1. An oyster card is a plastic smartcard that can be used as a replacement for paper tickets on the London transport link.

Conclusion

Of the English regions, households in London spent the most per week and households in the North East spent the least. Households in the southern areas spent more on average than those in northern areas. Generally, higher average expenditures reflected higher incomes.

Overall, households in rural areas spent more per week than those living in urban areas. One reason for this was the greater amount households in rural areas spent on transport.

In general, regions and countries with households that contained a higher number of people spent the most on food and non-alcoholic drink. English regions with households of lower-than-average disposable incomes spent less on fresh produce such as fruit and vegetables and spent more on cakes, buns and biscuits when compared with other English regions.

Households in the majority of regions and countries spent between 2 to 3% of their weekly household expenditure on alcoholic drinks (taken home), tobacco and narcotics. Households in Northern Ireland spent the most both in actual terms and as a proportion of total expenditure and London the least on alcoholic drinks, tobacco and narcotics.

Household spending on clothing and footwear as a percentage of weekly household spending was higher in areas with lower levels of disposable income. Households in the North East spent more in percentage terms than any other English region on clothing and footwear.

Households in London spent the least on the operation of transport of any region; this was partly due to London having the most widespread transport links in the UK. Households in Northern Ireland spent the most on the operation of transport. This is thought to be largely attributable to the high petrol and diesel prices in Northern Ireland. 

Data collected by the Living Costs and Food survey allows scope for further analyses; this includes but is not limited to:

• More detailed focus on weekly spending by individuals.
• Deeper investigation into causes of differences in spending patterns with reference to other possible sources.
• Cross analyses of categories of expenditure, such as food and non alcoholic drinks and alcoholic drinks, tobacco and narcotics.
• Detailed analysis of categories of expenditure that are not covered in this chapter.
• Analysis of expenditure categories by OAC groups.

Background notes

1. Symbols and conventions used in Family Spending 2012 edition

   [ ]  Figures should be used with extra caution because they are based on fewer than 20 reporting households.

   .. The data is suppressed if the unweighted sample counts are less than 10 reporting households.

   - No figures are available because there are no reporting households.

   Rounding: Individual figures have been rounded independently. The sum of component items does not therefore necessarily add to the totals shown.

   Averages: These are averages (means) for all households included in the column or row, and unless specified, are not restricted to those households reporting expenditure on a particular item or income of a particular type.

   Period covered: Calendar year 2011 (1 January 2011 to 31 December 2011) and aggregated calendar years 2009 to 2011.

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