Household discretionary income falls £9 in June

The average UK household had £167 a week of discretionary income last month, 5.1% lower than a year earlier.

The Asda Income Tracker found that consumer average earnings growth increased “marginally” in June, rising 2.1% in the three months to May. However, there was a “notable” fall in earnings growth in the public sector.

The soar in transport costs drove the fall in discretionary spend, with the cost of getting around now up to 16% higher than a year ago.

Regionally, London, the South East and East of England have topped the rankings again for discretionary spending power. Discretionary spend in London was £283 per week in the second quarter, compared to the UK average of £167.

Northern Ireland continues to suffer from the lowest household spending power, at just £80 per week.

Asda president and chief executive Andy Clarke said: “Nationally, shoppers’ disposable incomes are still down year-on-year. While it’s a relief to see a significant improvement on last month’s record drop, only time will tell whether this is a one-month blip or the beginning of a trend.”

“Across the regions, it’s a mixed picture. While spending power dropped everywhere, the fall in London and the South East was relatively mild.

“That contrasts with a much more dramatic fall in Northern Ireland and the North West where the higher car usage, and dependency on petrol, is leaving a larger hole in household budgets.”

Last month the Asda Income Tracker showed a record fall in family spending power in May, dropping £14 – or 8% - to £165 per week.