Rising fuel and food costs mean many UK families have less to spend than this time last year. According to Asda’s monthly income tracker, the average family is £11 a week worse off.
The average disposable income has dropped to a weekly amount of £132, down from £143 in August 2007. Yet the same results also predict that the overall cost of living has soared by 7.4%. These reports show that the there has been an average of £20 a week rise in wages, but this has been outstripped by the additional £31 that consumers need to pay for essential items, such as housing and transport costs.
Douglas McWilliams, chief executive of the centre for economics and businesses research which calculated this figures for Asda, said: “Up and down the country, families continue to come under pressure from inflation running at its highest level for 16 years. This is having a palpable effect on real disposable incomes, as is vividly illustrated by the trend in the Asda income tracker.”