According to Asda’s latest Income Tracker, British households had slightly more money left over after paying the essential bills in May this year compared with May 2025, but the supermarket noted that despite the small increase in spending power, many are still feeling the squeeze as weak wage growth, a soft labour market and rising energy costs impact finances.
The Tracker recorded annual growth of 3.3% in May 2026, slowing by 0.5% from April. The average household had £258 per week left after bills and essentials, which is up by £8.28 from a year ago. However, Asda noted that despite a modest month-on-month uptick, discretionary incomes remain below levels seen at the start of the year.
The spending gap is widening
The income tracker found that around 20% of households have just £12 left per week on average after paying essential bills, while the lowest earning 20% of households face a shortfall of about £73 each week after essential spending, meaning they are unable to fully cover basic costs such as food and household bills.
Higher-income households continue to see growth in the money they have left over, revealed Asda, as essentials such as food account for a smaller proportion of their overall spending and they are “better insulated” from price rises in everyday essentials.
“Discretionary incomes grew by only 0.6% month-on-month and remain below the levels seen in January of this year.”
Reacting to this month’s Income Tracker, Sam Miley, head of forecasting and thought leadership at Cebr, commented: “The Asda Income Tracker continued to show weak momentum in May 2026. While annual growth came in at 3.3%, discretionary incomes grew by only 0.6% month-on-month and remain below the levels seen in January of this year. The balance of risks for the Income Tracker’s outlook remain firmly on the downside.
“The most recent labour market data show labour demand continuing to unravel, putting downward pressure on earnings growth. Meanwhile, elevated inflation is expected to be exacerbated once household energy prices are recalibrated in July. The prospect of interest rate cuts, which could drive stronger economic activity, is thus expected to be delayed at least until next year. These headwinds are likely to drive contractions in discretionary incomes from Q3.”
The supermarket said it is continuing to lower prices on products customers buy most, including beef mince, pork sausages, eggs, baby potatoes and baked beans, to help shoppers money go further.
Delivery service rolled out to 300 more stores
Asda has also announced an expansion of its on-demand delivery service, adding more than 300 of its stores to the Deliveroo platform and bringing the total number of Asda locations offering the Deliveroo rapid delivery service to more than 850.
Shoppers can order through the Deliveroo app until 11pm and the expansion comes as late kick-off times in this summer’s FIFA Men’s World Cup see many matches running past midnight in the UK. Asda said the expansion is part of a strategy to offer value and convenience, giving customers the opportunity to shop “whenever and however” they like.
Barney Burgess, vice president for online grocery at Asda, said: “Our ability to offer customers a broad and ever‑growing range of services is a real strength for Asda, and expanding our partnership with Deliveroo builds on that.
“We’re focused on making shopping as convenient as possible, and by bringing Deliveroo to even more stores, customers can enjoy great Asda products and value delivered to their doorstep.”
