Money digest: today’s need-to-know financial news | 7 June 2016

Gloomy news on the front page of The Times this morning: according to a poll for the paper, one in three middle-class people could not pay an unexpected bill without resorting to borrowing. According to research by YouGov showing the squeeze on household finances, 31 per cent of middle-class voters — so-called ABC1s including professional, junior managerial and administrative workers — would struggle with a sudden bill of up to £500. Forty-six per cent of manual workers and the unemployed would not be able to afford the bill. Since the financial crisis, wages have fallen by up to 10 per cent on some calculations when adjusted for inflation. According to the Office for National Statistics, average disposable income recovered slightly last year to £30,900 but is still below the pre-downturn 2007 level of £31,600. On the road Thisismoney reports that British motorists spend an average of £695 a year keeping their treasured cars on the road – one of the highest figures in the world for servicing and repairs. And it is poised to spark a jobs boom with 40,000 jobs set to be created over the next six years as drivers spend even more on servicing their cherished vehicles.

On average, Britons spend £74 – or 12 per cent – per head above the global average of £621 per vehicle. It