Asda has revealed that cost-of-living struggles are far worse for families living outside of London, as the average weekly income is significantly lower than in the capital.
According to the latest figures from Asda’s latest Income Tracker, the squeeze on household disposable incomes is much worse for families living in certain parts of the UK than others – with households in Northern Ireland living on average weekly disposable income of just £95.
Families in Northern Ireland, the North East and West Midlands struggled the most during Q2, with average weekly disposable incomes of £95, £133 and £163 respectively – well below the UK average of £208 across the quarter to 30 June.
The supermarket chain found that the decrease in disposable income has hit low-earning families the most, with 40% of UK households in negative income territory last month.
This meant that their take home pay did not cover spending on bills and essentials.
In addition to these regions, other areas of the UK that also saw a decline in disposable income during Q2 were the South East (excluding London), East of England and Wales.
In contrast, many families living in London are faring better with rising living costs and have seen disposable incomes rise by 5.8% year-on-year to an average of £272 per week during Q2.
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While family disposable income across the UK rose by £5.74 a week in June to an average of £210 per week – a 2.8% increase compared to the same period last year – rising living costs continue to outstrip wage growth for the majority of households outside of the capital.
Asda claim the regions faring worse than others during the cost-of-living crisis tend to be characterised by a greater concentration of spending on consumption categories that have seen high inflation recently.
A key factor behind this rise is the strong labour market and concentration of high paying jobs in the capital.
Asda’s chief commercial officer, Kris Comerford, said: “We know that families are continuing to feel the pinch financially – especially as they head into the summer holidays – and are looking for help to make their grocery budget stretch further.
“Whenever there is an opportunity to help them make their money go further by lowering prices we will continue to do so.”
Asda continues to support families across the UK, and last week announced it was cutting the prices of more than 200 own-label lines – including a host of fresh fruit and vegetables, frozen meat and fish products, cupboard staples and popular ready meal.
