RISING incomes and savings pots among UK families are masking a widening gap between the ‘haves’ and ‘have nots’, an insurer’s Family Finance Report has revealed.

The last six months have seen the typical family’s income reach its highest point since March 2012.

Better savings habits also mean the typical family is saving a record £113 each month.

But despite these improvements, the income gap between family types has widened and many families are not managing to save each month, leaving them vulnerable to financial shocks – particularly as debts have also increased.

The typical family’s monthly income after tax reached a three-year high of £2,126 in May: the highest figure recorded since March 2012 (£2,139). Family incomes have risen by 4.1 per cent in the last six months alone from £2,043.

However, the upward trend masks a widening gap between the ‘haves’ and the ‘have nots’.

Parents who are raising children alone – either as single parents or as a result of being divorced, separated or widowed – have seen their monthly incomes drop from £1,176 to £1,077 since November 2014.