Londoners’ disposable income exceeds pre-pandemic peak

Asda’s Income Tracker recorded the strongest quarterly growth since Q2 2021
London leads the way with average disposable income topping £350 per week
UK-wide disposable income averaged £237 per week during Q2

London families are now better off than they were before the pandemic, according to the latest Asda Income Tracker.

Average household disposable income in London rose to £351 per week in Q2 – 3.0% up on the pre-pandemic peak of £340 in March 2021, thanks to above average wage growth in the capital.

This represents a significant uplift of £114 per week compared to the amount the average UK family is left with after paying bills and essentials, which stood at £237 per week during the quarter.

Only two other regions, Scotland and East of England, had average household disposable incomes above the UK-wide average during the quarter at £238 and £261 per week, respectively.

Whilst these were the only regions to record values above the UK average, the tracker grew by 13.5% on the year marking the strongest quarterly growth in three years.

This was largely driven by sharp slowdown in inflation in the quarter, with easing financial pressure on UK households and all regions now reporting slowdown in the cost of essentials.

These essentials include food and non-alcoholic drinks, with inflation in June standing at 1.5% in comparison to 17.3% in June 2023, reflecting the easing of the cost-of-living crisis. Meanwhile, energy prices remain in deflationary territory, further easing household cost burdens as the rate of decline continues to diminish since April.

**Sam Miley, Managing Economist and Forecasting Lead at Cebr who produce the Income Tracker on behalf of Asda, said:** *“A second consecutive month of inflation being at target has helped to support household spending power, given that earnings growth is significantly stronger.*

“Though inflation may pick up slightly in the coming months, it is still expected to fall short of income growth for some time. This means that improvements in spending power are set to continue, supporting consumption and the wider economy.”

Asda continues to support communities by keeping prices low and launching new initiatives.

The retailer recently announced that substantial funding of over £1m has been made available via The Asda Foundation through its Investing in Spaces and Places grants, to enable groups across the UK to transform local community spaces.

Applications for the grants are open until Sunday 28th July, but may close earlier if in high demand. Groups can check the criteria and apply through the Asda Foundation website (https://asdafoundation.org).

You can view the full Income Tracker here.