Household disposable incomes fell by 18% in June compared to the same period last year as the cost of living crisis continued to squeeze family budgets, according to the latest Asda Income Tracker. Soaring living costs, up 11% year-on-year in June, meant that families were on average £43.95 a week or £175.80 per month worse off compared to June 2021.
The average household had £200 per week left after paying tax and essential bills last month – a figure that has fallen for eight consecutive months to a figure last seen in December 2017. The cost of living crisis is particularly hard for low-income families with 20% of UK households now having ‘negative disposable income’ – resulting in a shortfall of £60 per week in June between what they earned and what they needed to spend on essentials such as mortgage, rent, utility bills and transport costs.
To help customers in the cost of living crisis, Asda recently launched a new ‘Essential Living Hub’, an online space where customers can access a broad range of hints, tips and hacks which go beyond the weekly food shop, covering how to save energy, budget better, buy and cook smarter, entertain the kids for free and even eat out without paying a penny.
