Disposable Income Falls as Cost of Living Continues to Rise in the UK
The latest Asda Income Tracker reveals that family spending power in the UK fell by £1 a week year-on-year in July 2013, as the cost of living continues to outstrip household income. According to the latest figures, the average UK family had £160 of discretionary income available to them in July 2013, unchanged from the previous month and well below its peak of £165, last seen in February 2010.
Slow wage growth and the 1% cap on working age benefits were again key factors behind this year-on-year decline, with average pay excluding bonuses up just 1.1% in the three months to June. The cost of essential items went up almost three times more (2.9%) over the same period than average pay, which was only marginally better than the 0.8% growth – an all time low – seen in the three months to March.
Energy bills continue to burn a hole in household budgets – rising over the past year by 8.2%, the fastest annual increase in home energy since August 2012. However, there is good news for homeowners as the annual growth in mortgage interest payments fell to 2.7% – the lowest since July last year.
