- Asda’s Income Tracker reveals a record drop in average household disposable income of £43.95 a week in June – equivalent to £175.80 per month
- Household disposable income falls for the eighth consecutive month
- 20% of UK households had ‘negative disposable income’ of £60 per week in June
Household income (weekly average)
Essential spending (weekly average)
Household discretionary income (weekly average)
Household disposable incomes fell by 18% in June compared to the same period last year as the cost of living crisis continued to squeeze family budgets, according to the latest Asda Income Tracker.
Soaring living costs, up 11% year-on-year in June, meant that families were on average £43.95 a week or £175.80 per month worse off compared to June 2021.
The average household had £200 per week left after paying tax and essential bills last month – a figure that has fallen for eight consecutive months to a figure last seen in December 2017.
The cost of living crisis is particularly hard for low-income families with 20% of UK households now having ‘negative disposable income’ – resulting in a shortfall of £60 per week in June between what they earned and what they needed to spend on essentials such as mortgage, rent, utility bills and transport costs.
To help customers in the cost of living crisis, Asda recently launched a new ‘Essential Living Hub’, an online space where customers can access a broad range of hints, tips and hacks which go beyond the weekly food shop, covering how to save energy, budget better, buy and cook smarter, entertain the kids for free and even eat out without paying a penny.
For those visiting stores, Asda has also extended its £1 kids’ café meals, with no minimum adult spend, until the end of the year.
With the start of the Scottish school summer holidays already in full swing, cafes north of the border have already served more than 11,000 children’s meals in less than a month. The offer will be rolled out to all Asda cafes on July 25th to coincide with the start of the summer holidays in England and Wales.
* The Asda Income Tracker is a measure of ‘discretionary income’, reflecting the amount remaining after the average UK household has had taxes subtracted from their income and bought essential items such as: groceries, electricity, gas, transport costs and mortgage interest payments or rent. The Income Tracker measures the amount left over to spend on discretionary purchases such as leisure and recreation goods and services.