One out of every five households is left with only £12 per week after covering essential expenses, as per the latest research findings. The situation is even more dire for the 20% lowest-earning families, who experience an average weekly shortfall of £73.
The Centre for Economics & Business Research’s data serves as a stark reminder of the ongoing cost of living crisis faced by many individuals daily. The research is based on Asda’s Income Tracker, which tracks the discretionary income of households after paying all taxes and essential bills. On average, households have £258 per week remaining after covering their expenses, indicating a marginal increase compared to the previous year.
These findings come at a challenging time when many workers are struggling to keep up with inflation, a weak labor market, and escalating energy costs impacting their financial stability. Despite a slight improvement in disposable incomes, concerns loom regarding a potential increase in inflation due to the economic repercussions of the Middle East conflict.
Higher-income households continue to witness a growth in their disposable income, benefiting from a smaller proportion of spending on essentials like food and being less affected by price hikes in everyday items.
Sam Miley, the head of forecasting and thought leadership at the Cebr, highlighted the sluggish momentum in the Asda Income Tracker for May 2026. While there was a 3.3% annual growth, discretionary incomes only grew by 0.6% month-on-month, remaining below earlier levels in the year.
Recent data from Worldpanel by Numerator indicated a slight decrease in food price inflation from 3.1% to 3% in the past month, offering some relief to those struggling to make ends meet. However, experts anticipate a potential rise in grocery bills in the near future due to the economic aftermath of the Middle East conflict.
According to Worldpanel, supermarket sales saw a 2.4% increase in the four weeks leading up to mid-June. This period coincided with the hottest May day on record in the UK and a 10-day heatwave, driving a surge in demand for summer essentials. Notably, sales of suncare products more than doubled, while fresh beef burger sales spiked by 40%.