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UK households witness income growth for eight consecutive months

January 3, 2024 10:55am
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The latest figures from Asda’s Income Tracker show that the amount the average household had to spend on themselves after paying taxes and essential bills in November was up by £15.20 a week, compared to the same period a year earlier.

This marks the eighth consecutive month of improvement and the highest annual growth rate in over two years (since September 2021), with the average disposable income up to £228 in November 2023.

The latest improvement shows that the financial burden facing many families continued to ease in the run up to Christmas, which can be attributed to sustained annual growth in gross income and a sharp slowdown in inflation.

Transport, including fuel, was the main driver of the latest month-on-month slowdown of inflation, with prices falling by 1.5% on the year in November. The food category also saw growth fall into single-digit territory for the first time since June 2022, at 9.2%.

Spending power also continues to grow for many UK households, and it was the highest earning households who recorded the strongest annual gross income growth for a ninth consecutive month.

Discretionary income for these households was £819 per week in November, a rise of 9.4% year-on-year, highlighting the impact of the easing of inflation and the strong wage growth environment.

Despite these improvements, the tracker indicates that lowest earning households are still bearing the brunt of the cost-of-living crisis with a deficit of £70 in disposable income per week – meaning their take home pay is not enough to cover spending on bills and essentials.

Asda continues to support families during the cost-of-living crisis by keeping prices in check and launching new propositions to provide customers with more value each time they shop.

Over 60s dining in Asda cafes before the end of February will be able to take advantage of the winter warmer deal and can get a bowl of soup, a roll and unlimited tea and coffee for just £1 this winter.

The deal, which launched in November 2022, is running alongside the Kids Eat for £1 deal in a bid to support customers who throughout the cost of living. The supermarket has so far served over 200,000 winter warmer meals and 3 million Kids Eat For £1 meals.

You can view the full report here.

About the Income Tracker

Independently compiled by Cebr (Centre for Economics & Business Research), the Asda Income Tracker has become an established barometer of disposable income, indicating how much families have left in their pockets after all taxes and essential bills are paid.

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