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News

Spending power of families at 12 month low

The average UK family’s spending power has fallen to a 12-month low after poor wage growth.
In April 2013 a typical family in the UK had £155 per week of discretionary income – down £1 over the same month a year earlier and £10 from when it was highest in February 2010.
ASDA, which tracked the figures, said rising unemployment and poor wage growth are to blame for the lowered spending – as well as heightened expenditure on utilities including gas, which has increased in price by 8.3 per cent year-on-year.
Unemployment has increased by 15,000 over the last year to 2.52 million, pushing the jobless rate to 7.8 per cent – thus reducing the amount of money some families have to spend on discretionary purchases at supermarkets.
ASDA president and chief executive Andy Clarke said: “Whilst our income tracker records a drop in national wage growth, the increase in the personal tax allowance should relieve some pressure although it will take time before we see [the results of this].”

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