Eighty percent of UK households experienced drop in disposable income last month
The vast majority of UK households were notably worse off in May, compared to the same period last year, as rising living costs continue to outstrip wage growth, according to the latest Asda Income Tracker.
The tracker highlighted that the dip in disposable income has been especially severe for low-income families.
40% of UK households fell into negative income territory in May, meaning their take-home pay was insufficient to cover essential spending on bills and other necessities. For these families, the average shortfall was £42.50 per week.
In contrast, high-income households experienced a 2.1% rise in disposable income year-on-year to an average of £754 per week in May.
This marks the second consecutive month of disposable income growth for these households, bolstered by strong increases in their gross income.
However, the tracker showed that despite a modest £1.85 per week rise in overall family disposable income to an average of £207 per week, a 0.9% increase year-on-year, the family finances remain strained.
This is the second-lowest figure since October 2022, mainly attributed to persistent inflation in essential categories such as food and housing.
To support families during this cost-of-living crisis, Asda has kept prices in check and launched new schemes to provide customers with greater value each time they shop.
Recently, the supermarket announced a price lock on over 500 popular branded and own-label lines to give families more control and certainty over their shopping budgets.
The Asda Income Tracker provides a crucial measure of ‘disposable income,’ indicating the amount UK households have left to spend on discretionary purchases after paying taxes and essential bills. Spotted something? Got a story? Send a Facebook Message | A direct message on Twitter | Email: News@Deeside.com