The latest figures from Asda’s Income Tracker reveal that Northern Ireland, Wales and the West Midlands have experienced growth in disposable income during September for the first time in two years, as financial pressures facing families begin to ease.
Disposable income for the average family in Northern Ireland has increased by £5 per week to £103, making it the UK’s third strongest growing region in Q3. Families in Wales and West Midlands saw a year-on-year increase in their disposable income in Q3, rising from £169 to £179 and £173 to £174 respectively.
Household disposable incomes grew in all UK regions except the South West, driven by a robust job market and growth in earnings throughout the quarter, which is predicted to outstrip inflation in the near future.
Across the UK, the amount households had to spend on themselves, after paying taxes and essential bills, grew by 5.2% during Q3 to an average of £221 per week, compared to £208 in Q2.
Despite improvements across the UK, the gap between the capital and the rest of the country remains stark. The average household in London saw their household disposable income increase by 7.3% to £292 per week in Q3.
There is also a noticeable difference between high and low earning households, with 40% of all UK households having negative disposable income in September, meaning the value of their post-tax income is less than they need to spend on bills and essentials. The shortfall for the lowest earning families was £75 per week in September, which represents a 25% fall in their disposable income year-on-year.
Asda continues to support families during the cost-of-living crisis by keeping prices in check and launching new propositions to provide customers with more value each time they shop.
The supermarket has invested £44m during the last few months to lower prices on over 600 popular products bought by customers each week, including bread, fresh meat, pasta and cupboard staples.
More than five million customers are now using Asda’s popular Rewards app which provides customers with the chance to earn pounds, rather than points, each time they purchase certain products or complete a milestone mission. Customers have earned over £200m in their Cashpots, which they can use to reduce their grocery bills.