Asda has discovered that 80% of UK households saw a drop in their disposable income in May, compared to the same period last year, as rising living costs continue to put pressure on family budgets and wage growth.
According to Asda’s latest Income Tracker, the decrease in disposable income has been particularly hard for low-earning families, with 40% of UK households falling into negative income territory in May – meaning their take home pay does not cover spending on bills and essentials.
The average shortfall for these households was £42.50 per week last month.
In contrast, high-income households saw a 2.1% rise in disposable income in May year-on-year to an average of £754 per week.
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This is the second successive month of disposable income growth for these households, driven by strong increases in their gross income.
The tracker from the big 4 grocer also showed that family disposable income as a whole rose by £1.85 per week in May to an average of £207 per week, a 0.9% increase compared to the same period last year.
The supermarket recently announced it had locked the price of over 500 popular branded and own-label lines to give families more control and certainty over their shopping budgets.
