Here’s how much money people earning £11,000, £25,000, and £41,000 have left over each week
Low and middle-income families remained under financial pressure, with 60% of UK households seeing a fourth consecutive monthly fall in spending power, according to Asda’s latest Income Tracker.
The group’s data shows that approximately 20% of all households – typically earning £11,000 a year or less – have a £74 shortfall each week, leaving them unable to cover essential bills.
Another 40% of households struggled as well: those earning about £25,000 a year had only £10 left after essentials, while those on £41,000 had just £90 remaining.
Earnings growth for these households continued to lag behind rising essential costs and higher tax payments, despite October marking the first slowdown in annual inflation since May, as inflation remained well above the Bank of England’s target at 3.6%.
Housing and utilities were again the biggest drivers of inflation, even though the energy price cap slowed gas and electricity rises. Water bills remained elevated, up 26.4% on the year. Food inflation also picked up to 4.9%, with bread and cereals rising 1.2% month-on-month.
The essential basket tracked by Asda’s Income Tracker rose 4.6% year-on-year as a result, with the Tracker showing that households aged 30-49 faced the highest essential costs (£799) and the largest monthly tax bill (£281), making them particularly exposed to rising costs.
Cebr warns that further pressures may emerge as the festive season approaches and the Chancellor prepares to deliver the Budget this week.
“While the outturn inflation data for October supports Cebr’s view that inflationary pressures have peaked, there remain considerable risks to the outlook for the Income Tracker. Worse than expected labour market figures for September illustrate that the UK labour market has been weakened by raised employment costs and weak demand,” said Sam Miley, Head of Forecasting and Thought Leadership at Cebr.
“Prospects for the UK economy are also not helped by the high likelihood of fiscal contraction in the November Budget. With households and business alike nervously waiting to see how much of the fiscal burden will be placed on their shoulders, there could well be risks ahead for the Income Tracker.”
