Data From Asda Suggests Financial Pressures Starting To Ease For Some Families

 Namnews, 26th October 2023

Latest figures from Asda’s Income Tracker reveal that Northern Ireland, Wales and the West Midlands experienced growth in disposable income during September for the first time in two years as financial pressures facing families started to ease.

Disposable income for the average family in Northern Ireland increased by £5 per week to £103, making it the UK’s third strongest growing region in the third quarter. Families in Wales and the West Midlands also saw a year-on-year increase in their disposable income in the quarter, rising from £169 to £179 and £173 to £174 respectively.

Household disposable incomes grew in all UK regions except the South West, driven by a robust job market and growth in earnings throughout the quarter, which is predicted to outstrip inflation in the near future.

Across the UK, the amount households had to spend on themselves, after paying taxes and essential bills, grew by 5.2% during the third quarter to an average of £221 per week, compared to £208 in the previous quarter.

Despite improvements across the UK, the gap between the capital and the rest of the country remains stark. The average household in London saw their household disposable income increase by 7.3% to £292 per week in the three month period.

There was also a noticeable difference between high and low-earning households, with 40% of all UK households having negative disposable income in September, meaning the value of their post-tax income is less than they need to spend on bills and essentials. The shortfall for the lowest-earning families was £75 per week in September, which represents a 25% fall in their disposable income year-on-year.

Asda noted that it continues to support families during the cost-of-living crisis by keeping its prices in check and launching new propositions to provide customers with more value. The supermarket has invested £44m during the last few months to lower prices on over 600 everyday products.