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Economy

Family spending power reaches 11-year high

According to Asda’s latest Income Tracker, the average family disposable income increased by 13.1% year-on-year in March

The average family disposable income in the UK has reached an 11-year high, according to Asda’s latest Income Tracker.

Income increased by 13.1% year-on-year in March, representing a weekly income rise of £28 for each household.

London saw the smallest annual growth with a rise of 8%, while disposable incomes in Northern Ireland increased by 19% year-on-year.

Some 40% of consumers polled said they feel more positive about the future compared to just 4% in November 2020, who were surveyed at the same time as the UK’s second wave of coronavirus.

Furthermore, the easing of lockdown restrictions has also had a positive impact from the public’s perspective with 42% revealing they are beginning to “feel normal’ again” for the first time since the pandemic began.

Rob McWilliam, Asda’s chief finance officer, said: “With families benefiting from an extra £28 in their pockets each week and lockdown restrictions easing, we have seen a notable increase in the number of customers feeling positive about the future.

“With a further easing of restrictions next week, almost 60% of those we recently spoke to said they are looking forward to enjoying large get-togethers with friends and family.”

He added: “However, while most households do have that extra disposable income we are seeing somewhat of a ‘k-shaped’ recovery where others are much worse off.

“It is clear that the financial pressures and implications of reduced working hours and job uncertainty are still being felt by many thousands of families across the UK and that means it remains as vital as ever that we offer them great value when they shop with us.”

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