All UK regions enjoy disposable income growth for the first time since 2021
The latest figures from Asda’s Income Tracker reveal that for the first time in two years, all UK regions recorded positive annual growth in disposable income in the final quarter of 2023.
After paying bills and essentials, the average UK family had a disposable income of £224 per week in Q4. This was the highest amount since the start of 2022 and was driven by strong wage growth and inflation continuing to ease.
Despite the positive improvements, disposable income remains firmly down on the values witnessed prior to the cost-of-living crisis. Compared to the peak of £246 in Q1 2021, UK-wide discretionary income has fallen by 9.1%.
London continues to have the strongest disposable income with the average household in the capital seeing an increase of 10.1% to £301 per week across Q4. This means that their disposable income is now near to the peak seen in 2021.
The East of England and Scotland also both recorded above UK-wide average disposable income values at £236 and £228 per week respectively.
Wales recorded the weakest increase in disposable income in the quarter, which was mainly driven by weak earnings growth in the region and whilst the North East witnessed the strongest growth at 11.3%, it still has the second lowest income value at £146 per week.
In contrast to London, Northern Ireland’s spending power however significantly lagged behind the UK average at just £103 per week. This can be attributed to weaker earnings growth and the country’s greater exposure to inflationary pressures.
Consequently, disposable income in Northern Ireland remains firmly below its peak before the cost-of-living crisis. This difference is the highest amongst all regions of the UK.
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.
Asda recently became the first supermarket to price match both Aldi and Lidl across a broad range of popular everyday products, further reinforcing its value credentials with consumers.
The supermarket is price matching Aldi and Lidl on 287 comparable grocery products, including a host of household staples, and has reduced prices by an average of 17% - to match whichever discounter has the lowest price on these products.
Over 60s dining in Asda cafes before the end of February will be also 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.
You can view the latest Income Tracker 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.