The latest figures from retailer Asda’s Income Tracker reveal that financial pressures on UK families eased significantly in April, with disposable income for the average household reaching its highest level since September 2021.
The amount average households were left with last month, after spending on bills and essentials, was £239 per week – £32.52 per week higher than April 2023. The improved financial outlook saw the tracker reach its highest level in well over two years, with household disposable income now only 2.7% below its “pre-crisis peak” of £346 in March 2021.
Asda said a key driver behind the improvement in household spending power was a third consecutive month of significant deflation with annual inflation now standing at 2.3% – the lowest rate of inflation in more than two years.
The Ofgem price cap and deflation in energy prices were a key component in driving the marked slowdown of inflation in April, with deceleration in food and non-alcoholic beverages also contributing.
Additionally, Asda said that lower-income households benefited from the recent uplift in the National Living Wage which took effect last month. Although all households saw an increase in spending power in April compared to the previous year, many family budgets remain under pressure in real terms.
The latest report from Asda’s Income Tracker can be read, in full, here.
