Asda Income Tracker Notes Increase In Household Financial Pressure

The latest Asda Income Tracker reveals that many UK households are under financial pressure, with rising living costs outpacing wage growth across much of the country.

In September, the average UK household had £254 in weekly discretionary income, up £2.81 year-on-year, marking the first acceleration in growth since December 2024.

However, with inflation remaining stubbornly high at 3.8% - the joint-highest level since January 2024 - the financial burden facing lower-and middle-income families shows little sign of easing.

Key findings include:

• 60% of lower- to middle-income households saw a decline in discretionary income, as essential spending continues to rise faster than post-tax income.

• The lowest-income households recorded a shortfall of £73 per week, leaving many struggling to cover basic costs.

• Seven out of twelve UK regions were worse off than a year ago, with the West Midlands seeing the sharpest drop in weekly discretionary income (down £7.70 to £193).

• London recorded the highest regional spending power at £334 per week, while Northern Ireland had the lowest at £130.

• Annual gross income growth slowed across nearly all UK regions, with manufacturing hubs such as the West Midlands, Yorkshire and the Humber, and the North West particularly affected by US export tariffs.

Reacting to this month’s Income Tracker, Sam Miley, Head of Forecasting and Thought Leadership at Cebr, said: “While inflation has held at nearly twice the Bank of England's target, certain essential spending categories such as food are starting to see a slowdown in price rises, which will be welcomed by consumers.

“The upcoming November Budget has also hinted at further support for household energy bills, which could be an additional cause for optimism heading into the fourth quarter of 2025. That said, with the UK labour market cooling, the risk of a contraction heading into the new year cannot be ignored.”

Asda continues to invest in lowering prices to help shield customers from the worst of inflation, as part of its ongoing commitment to Asda Price.

The retailer recently announced thousands of new price cuts as part of Rollback, delivering unbeatable value alongside its unmatched full-service offer across household favourites, George, cafés, pharmacy, optical, and fuel.

You can view this month’s Income Tracker, here.

Source : Asda

Image : DragonImages / iStock / 1215683452

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