Housing costs highest for 40 years

The Office for National Statistics report, which forms part of its Social Trends survey, found spending in these areas accounted for 21 per cent of total outgoings for 2008, up from 15 per cent in 1970.

Another set of data showed that UK households saved less in the year than for 40 years – although more recent figures suggest the recession has renewed people's interest in stashing money for a rainy day.

As the proportion of household spending on housing and energy rose, food and non-alcoholic drink dropped from 21 per cent in 1970 to nine per cent in 2008, the ONS said yesterday.

A similar decrease occurred in clothing and footwear, which fell from 10 per cent to five per cent of spending.

The ONS said this was not necessarily because households were spending less on these items, but that other expenditure had risen more rapidly.

The changes have occurred as spending on services has outstripped outlay on goods over the last 40 years.

Between 1970 and 2008, the proportion of total household expenditure that went on services increased from 35 per cent to 52 per cent.

Spending on goods decreased from 66 per cent to 46 per cent in the same period.

Savings rates slumped by 2008, with the proportion of resources allocated for savings at 1.7 per cent – the lowest level since 1970 – but the ONS said data for the first half of 2009 indicated the ratio was rising, reaching an average of 4.8 per cent.