The most recent data from Asda’s Income Tracker indicates a significant alleviation of financial pressure on UK households in April. According to the report, the average household’s disposable income reached its highest level since September 2021, standing at £239 per week after essential expenses—marking a £32.52 increase from April 2023. This positive trend has brought household disposable income to within 2.7% of its pre-crisis peak of £346 in March 2021.
One of the key factors driving this improvement in household spending power is the third consecutive month of significant deflation, with annual inflation now at a low of 2.3%—the lowest rate in over two years. The Ofgem price cap and decreases in energy costs have contributed to the slowing down of inflation in April, along with a decline in food and non-alcoholic beverage prices.
Furthermore, lower-income households have benefited from the recent increase in the National Living Wage, which went into effect last month. While all households have seen an improvement in spending power compared to the previous year, many family budgets are still facing challenges in real terms.
For more detailed information, you can access the full report from Asda’s Income Tracker by clicking the following link: here
Overall, these findings suggest a positive outlook for UK families as financial pressures begin to ease, supported by favorable economic conditions and policy measures.
