How much you should have left over after paying all your bills

New research explains how much money the average person has left over after paying for essentials

People across the UK are earning more, spending less on bills, have more spare cash – and are spending more on non-essentials – than they were this time last year, according to the latest Household Money Index report from MoneySuperMarket.

The annual HMI, which tracks what 10,000 UK survey respondents have spent on a basket of 31 bills and outgoings on a quarterly basis, finds that in September 2024 the average person has £684.70 of disposable income left over at the end of each month – £60.70 a month more than this time last year.

Spending on 20 of the 31 bills and outgoings the HMI measures has decreased in the last 12 months, while spending on non-essential products and services has increased dramatically. The amount spent on home repairs rose by 40% and subscription services such as TV and music streaming jumped 41%.

Gym memberships soared from under £16 per month last September to £51 today. News subscriptions leapt from an average £11 per month in September 2023 to £51 today – a 353% rise. The average daily figure for bills and outgoings over 12 months was £49.06 per day. However that figure varies depending on where you live in the UK.

The HMI reveals Southampton, the shipping and cruise capital of the nation supporting 45,000 jobs, as the place in the UK where money goes the furthest. People in the Solent city have the highest disposable income and the lowest ratio of income to expenditure, spending an average of 60% of their income after tax on bills and outgoings over the last 12 months compared to the national average of 69%.

People in Liverpool, meanwhile, spend the most - with 75% of their income going on bills and fixed outgoings. London and Manchester have consistently been the most expensive places to live over the year. While spending in the capital is much higher than Manchester, so too is income, meaning residents in each city end up with the same amount of disposable income at the end of each month.

Peter Duffy, CEO at MONY Group - the parent company of MoneySuperMarket - said: “MoneySuperMarket’s second annual Household Money Index offers detailed insight into UK spending habits over the past 12 months, using MoneySuperMarket data. This year, people report having a bit more money left after they’ve paid bills and expenses, which they’re choosing to spend on things like home improvements, subscription services, and gym memberships.

“Even with the rise in disposable income, people are more determined than ever to find savings wherever possible. This is borne out by the success of MoneySuperMarket’s SuperSaveClub, which now has over 500,000 members who have saved an extra £122m since this time last year.”