The youngest in society are suffering the most during the cost of living crisis with their discretionary income down by 17.5% year on year in January, the latest figures from Asda’s Income Tracker reveal.
All age groups saw their disposable income after paying taxes and essential bills reduce last month to an average of £215 per week, however, it was the under-30s who were worst off, with just an average discretionary income of just £153 per week.
Whilst the average annual gross income grew 5.4% to £954 per week in January, the impact on discretionary income for under-30s can be explained by the increased cost of essentials. Younger people spend a greater proportion of their income on housing and utilities, which continue to have the highest rates of inflation. And with the news that the typical annual household bill for gas and electric is to rise in April, this trend looks set to continue.
This is in contrast to those between the age of 50 and 64, who saw their overall spending power reduce by 2.7% compared to last January, but still had an average of £307 per week free to spend.
As part of its ongoing efforts to support customers through the cost of living crisis, Asda has launched a new initiative to lock the prices on hundreds of popular branded and own label products, until 31st May.
Asda’s Chief Commercial Officer, Kris Comerford, said: “The latest Income Tracker data highlights the continued pressure families are facing trying to balance their weekly budget – with spending power down again this month by an average of £22 per week, year-on-year.”
“By locking the prices of hundreds of weekly staples, extending the initiatives on offer in our cafes, and creating nutritious recipes that feed a family of four for a week for £20 using our great Just Essentials range – we’re doing all we can to keep bills as low as possible for our customers.”
Last month, Asda announced its Kids’ £1 meals and over 60’s Winter Warmer £1 café deals would be extended until the end of March. Both offers have been hugely popular with customers and more than 1.1m meals have been served since the launch last July. Asda’s ‘Seven for £20’ recipes can be found here and include recipes such as fish pie and chicken stew with rice.