Tightening Gucci belts: how Britain cut back on food, fun and furniture An average household's weekly spending has fallen from £521.90 in 2001 to £489 in 2012. At the same time, the growth of buy-to-let, low levels of housebuilding and a mortgage drought has led to growing numbers of people living in rented accommodation - up from 29 per cent of people to 34 per cent. ...and electricity and gas bills are going up... It means for the first time housing - rent, gas and electricity - will overtake petrol as a family's biggest single weekly cost. ...forcing families to cut back on groceries. Families are buying less food, or going to cheaper shops. Which has led Aldi, the discount supermarket, to double its profits last year - and led to the expansion of thrift stores such as Poundland and Iceland. Sales of own-brand budget lines have soared. People are also putting off buying new sofas, dishwashers and patios ...pushing big homeware retailers like Comet, Allied Carpets and Focus DIY to the wall. They are taking their children out of private school... and cutting back on things like school trips, music lessons and language classes.... And are cutting down on journeys... Cycling is in. Long country drives in gas-guzzling cars are out. And people are spending less on drugs, drink, cigarettes and visits to restaurants and hotels While spending more on sports, gyms and trips to art galleries. In short, Britain tightened its belt. But it's a nice belt. Spending on clothing and footwear has increased over the decade and many of Britain's major fashion retailers have weathered the downturn. It's up from £15.30 a week in 2001 to £23.40 a week last year. The Chancellor has promised a recovering economy will lift living standards And there's signs the big squeeze may be coming to an end. Today's ONS data shows wages in April 2013 were growing at 2.2 per cent - the fastest pace since 2008. That has narrowed the gap with inflation, running at 2.4 per cent. The point those two blue lines cross again is when families will feel better off.