Income tracker reveals falling spending and fears over jobs
Family spending power has fallen again this month and is now Â£7 less than the same month a year ago, according to the latest Asda income tracking survey.
Although gross incomes for November were 2.3% higher than in the same month last year, the cost of essential goods and services rose 3.5% in the period.
According to the Income Tracker, the average UK family was £7 a week worse off in June 2010 compared to a year earlier. This represents the biggest fall in disposable income available to families since the beginning of the year. As a result, the average UK household had £171 a week of discretionary income in May 2010, down from £178 this time last year.June was the sixth consecutive month of decline.
It also found that one in eight people are worried about losing their jobs in the next six months, with 40% prepared to take a pay cut or reduced hours to avoid unemployment.
Charles Davis, the economist at Cebr who compiles the report for Asda, said the cost of living was rising higher than people’s earnings, with transport costs one of the biggest drivers.
Andy Clarke, Asda CEO, said, “Our customers are telling us that not only do they have less money but many are worried about their job security, and can’t see their finances improving for some time.”
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