People aged under 30 have reportedly been hit hardest by the cost-of-living crisis with discretionary income down by 17.5% year-on-year in January, the latest figures from Asda’s Income Tracker have revealed.
According to the dataset, all age groups saw their disposable income drop to an average of £215 per week – after tax and energy bills. However, it was the under-30s who were worst off, with an average discretionary income of £153 per week.
Whilst the average annual gross income grew 5.4% to £954 per week in January, the big 4 grocer suggests that this impact on income for young adults and below can be explained by the increased cost of essentials.
The report said: “Younger people are spending a greater proportion of their income on housing and utilities, which continue to have the highest rates of inflation.”
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This is in contrast to those between the age of 50 and 64, who saw their overall spending power reduce by 2.7% compared to last January, but still had an average of £307 left over in disposable income.
With the news that the annual household bill for gas and electric are to rise in April, this trend looks set to continue.
As part of its ongoing efforts to support customers through the cost of living crisis, Asda has launched a new initiative to lock the prices on hundreds of popular branded and own label products, until 31st May. The retailer is also extending its Kids’ £1 meals and over 60’s Winter Warmer £1 café deals to the end of March.
“The latest Income Tracker data highlights the continued pressure families are facing trying to balance their weekly budget – with spending power down again this month by an average of £22 per week, year-on-year,” Asda’s chief commercial officer, Kris Comerford, said.
He added: “By locking the prices of hundreds of weekly staples, extending the initiatives on offer in our cafes, and creating nutritious recipes that feed a family of four for a week for £20 using our great Just Essentials range – we’re doing all we can to keep bills as low as possible for our customers.”
It comes as Asda is investing a record £141m in giving a 10% pay increase to hourly-paid store colleagues, as well as a bonus payment for staff.
