United Kindom, October 26, 2024 – The lowest-earning households saw a rise in disposable income for the first time since August 2021, reports Asda’s Income Tracker. Disposable income for these households increased by 4.9% in February 2024. The growth came from rising gross income and a slowdown in core inflation. Despite this, discretionary income for these households remains negative at -£68. Take-home pay still falls short of covering essential bills and expenses.
In contrast, average UK households experienced a £18.56 weekly rise in discretionary income compared to February 2023. This marks eleven consecutive months of growth, with the strongest gains since August 2021. Asda disposable income trends indicate steady recovery from the cost-of-living crisis.
Upcoming policy changes, such as lower National Insurance rates, will further boost household spending power. Pension and National Living Wage increases will also enhance disposable income in the coming months. While discretionary income remains 6.2% below pre-crisis levels, Asda’s Income Tracker shows a gradual recovery since April 2023.
Sam Miley, Managing Economist at Cebr, forecasts a sharp increase in income starting in April 2024. Inflation is expected to drop as household energy bills decline, boosting consumer spending power. Asda continues to support households with community initiatives. The supermarket recently raised hourly wages for store-based colleagues from £11.11 to £12.04. This represents an 8.4% pay increase and a £150 million investment in employee wages, making Asda the highest-paying traditional supermarket.
Asda also confirmed its “Kids Eat for £1” café meal deals will run throughout 2024. This initiative has served over three million meals since its launch in June 2022. The program supports families without hidden costs or minimum adult spend requirements.
Overall, Asda disposable income data reflects a recovery, with more improvements expected soon. Access the full report through Asda’s Income Tracker.
