Asda’s monthly Income Tracker has revealed that one in every five UK households (20%) now have a ‘negative disposable income’, an average shortfall of £60 between their earnings and what they need to spend on essentials each month.
The monthly income tracker from the UK’s third largest supermarket group also revealed a record 18% drop in average household disposable income compared to June last year, as the cost of living crisis continues to squeeze family budgets.
Asda’s data showed that soaring inflation and rocketing living costs – up 11% year-on-year in June – meant that families were an average of £43.95 a week worse off (or £175.80 per month), compared to this time last year.
June 2022 was the eighth consecutive month in a row that the UK’s household disposable income had fallen, with the average family having just £200 per week left after paying tax and essential bills last month.
READ MORE: Sainsbury’s, Asda and Morrisons back plans to combat cost-of-living crisis
The Asda Income Tracker, which is a measure of ‘discretionary income’, also revealed that cost of living crisis is particularly hard for low-income families.
Confidence levels among consumers are currently at record lows as they struggle with the disparity between the soaring cost of living and wages which are failing to keep pace with inflation levels.
In response to the crisis, consumers are trading down across the board; switching from traditional supermarkets to discounters and from branded to private label products.
Supermarkets are also supporting customers where they can with new pricing strategies and other initiatives such as Asda’s Essential Living Hub, an online money-saving advice hub which aims to help parents who are struggling to pay for kids summer activities amid the cost-of-living crisis.
Asda has also extended its £1 kids’ café meals offer, with no minimum adult spend, until the end of the year.
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