The average earner can expect to see their finances increase by an additional £482 in this year according to a report from Ernst & Young ITEM Club.

Provided economic factors such as oil prices and inflation continue to follow current predictions, wage growth will begin to outpace inflation once more during 2012. Spending growth is expected to rise to 0.8 percent in this year and by 1.1 percent in 2013.

Senior economic adviser to the Ernst & Young, Andrew Goodwin, said: "After the tightest squeeze on consumer incomes in a generation, the worst is now behind us and most people should start to feel a bit better off by the end of the year."