Disposable income of under-30s falls by more than a fifth

Under 30s in the UK have been hit with a 21.6 per cent drop in disposable income since last year as the country sees a spike in essential spending, states a recent report by supermarket Asda.  

As costs of groceries, rent and transport rose by 12.5 per cent year on year to £774 in July, those within this age bracket were left with £150 a week once taxes and essential bills were deducted. 

This data shown within Asda’s latest Income Tracker found that the average household disposable income fell by £40.21 per week last month, resulting in the second largest decline since the tracker was first published in 2008 at a drop of 16.5 per cent year on year across all age demographics. 

This was the second-largest fall since the Asda Income Tracker was first published in 2008 and means that households were on average £40.21 per week or £160.84 per month worse off compared to July 2021. 

Asda’s Mindset Tracker revealed 87 per cent of customers are worried by increasing levels of inflation as the country witnesses the highest rate in 40 years.  

Asda Income Tracker is a measure of ‘discretionary income’, reflecting the amount remaining after the average UK household has had taxes subtracted from their income and bought essential items such as groceries, electricity, gas, transport costs and mortgage interest payments or rent. The Income Tracker measures the amount left over to be spent on discretionary purchases such as leisure and recreation goods and services.