Asda has revealed that family disposable incomes reached an 11 year high in March, after successive lockdowns limited spending opportunities.
According to the Big 4 grocer’s Income Tracker, the figure has increased by 13.1 per cent since last year, when people were first hit by reduced working hours and furlough.
On average, families are around £28 better off per week since March 2020.
London has seen the smallest annual growth of around 8 per cent, while Northern Ireland had the largest at 19 per cent.
Experts attribute the increase to three lockdowns over the past year, where families saved rather than spending money, and annual wage growth of 3.9 per cent.
However, young people have been hit hard by the Covid-19 pandemic, with 86 per cent of 18 to 34 year olds being without savings.
Asda chief financial officer Rob McWilliam noted that “while most households do have that extra disposable income we are seeing somewhat of a “k-shaped” recovery where others are much worse off.”
He added: “It is clear that the financial pressures and implications of reduced working hours and job uncertainty are still being felt by many thousands of families across the UK.”
The news coincides with the Bank of England upgrading its growth forecast to 7.25 per cent, the sharpest increase since the Second World War.