More

    Disposable income drops in most households: Asda

    Photo: iStock

    The vast majority of UK households (80 per cent) were notably worse off in May, compared to the same period last year, as rising living costs continue to outstrip wage growth.

    According to the latest Asda Income Tracker, the decrease in disposable income has been particularly stark for low-earning families, with 40 per cent of UK households falling into negative income territory in May – implying their take home pay does not cover spending on bills and essentials. The average shortfall for these households was £42.50 per week in May.

    In contrast, high-income households enjoyed a 2.1 per cent  rise in disposable income in May year-on-year to an average of £754 per week. This is the second successive month of disposable income growth for these households, driven by strong increases in their gross income.

    The tracker showed that family disposable income as a whole rose by £1.85 per week in May to an average of £207 per week, a 0.9 per cent increase compared to the same period last year.

    However, even with this increase family finances remain weak, as May’s figure of £207 per week was the second lowest since October 2022. The strain on family disposable incomes is the result of elevated and persistent inflation in essential categories such as food and housing.

    It comes as Asda announced that it has frozen the prices of over 500 branded and own-branded products. The price lock, which runs until the end of August, includes cupboard essentials such as cereals, pasta and tea, as well as summer favourites such as salads, burgers and ice cream.

    We’re always looking at ways we can support our customers and communities throughout the year, which is why we’re locking the prices of hundreds of products until the end of August,” Kris Comerford, Asda’s Chief Commercial Officer, said at the time.

    “We know that household budgets are tight at the moment, so we want to be able to offer the best value and give customers the confidence they can shop the products they love throughout summer.”

    Latest

    Pukka expands savoury range with new pie, slice

    Pukka is adding a duo of new recipes which...

    Clearspring launches 30th anniversary organic Okumidori Matcha

    Japanese and organic fine food specialist Clearspring is launching...

    JTI expands ultra-value offering with introduction of Mayfair Gold

    Japan Tobacco International (JTI), is expanding its ultra-value range...

    Unitas adds limited edition Cherry Isotonic to its LSV energy drinks range

    As part of a wider range rebrand, Unitas Wholesale...

    Don't miss

    Pukka expands savoury range with new pie, slice

    Pukka is adding a duo of new recipes which...

    Clearspring launches 30th anniversary organic Okumidori Matcha

    Japanese and organic fine food specialist Clearspring is launching...

    JTI expands ultra-value offering with introduction of Mayfair Gold

    Japan Tobacco International (JTI), is expanding its ultra-value range...

    Unitas adds limited edition Cherry Isotonic to its LSV energy drinks range

    As part of a wider range rebrand, Unitas Wholesale...

    BIRA’s new survey shows shocking levels of retail crime

    A new report from the British Independent Retailers Association...

    BIRA’s new survey shows shocking levels of retail crime

    A new report from the British Independent Retailers Association (BIRA) reveals that a surge in retail crime is negatively impacting independent shops across sectors...

    The UK’s Top of the Shop (-lifting) charts

    With the UK still in the throws of the cost of living crisis, it’s no surprise shoplifting has increased, with the British Retail Consortium...

    ‘Great tasting’ start to apple season

    The sunniest June in more than six decades has delivered great season for British apples, says UK grower body British Apple & Pear Limited...