Asda research finds households in seven out of 12 UK regions are worse off than a year ago
Many UK households remain under financial pressure, with rising living costs outpacing wage growth across much of the country, new research has indicated.
According to Asda’s latest Income Tracker, in September the average UK household had £254 in weekly discretionary income, up £2.81 year-on-year, marking the first acceleration in growth since December 2024.
However, with inflation remaining stubbornly high at 3.8 per cent – the joint-highest level since January 2024 – the financial burden facing lower-and middle-income families shows little sign of easing, according to Asda.
The research found that some 60 per cent of lower- to middle-income households saw a decline in discretionary income, as essential spending continues to rise faster than post-tax income. The lowest-income households recorded a shortfall of £73 per week, leaving many struggling to cover basic costs.
Seven out of 12 UK regions were worse off than a year ago, with the West Midlands seeing the sharpest drop in weekly discretionary income – down £7.70 to £193.
London recorded the highest regional spending power at £334 per week, while Northern Ireland had the lowest at £130.
Annual gross income growth slowed across nearly all UK regions, with manufacturing hubs such as the West Midlands, Yorkshire and the Humber, and the North West particularly affected by US export tariffs.
Sam Miley, head of forecasting and thought leadership at Cebr, said: “While inflation has held at nearly twice the Bank of England’s target, certain essential spending categories such as food are starting to see a slowdown in price rises, which will be welcomed by consumers.
“The upcoming November Budget has also hinted at further support for household energy bills, which could be an additional cause for optimism heading into the fourth quarter of 2025. That said, with the UK labour market cooling, the risk of a contraction heading into the new year cannot be ignored.”
