One out of every five households is left with only £12 per week after covering essential expenses, according to recent research findings. The situation is even more challenging for the lowest-earning families, who experience an average weekly shortfall of £73.
The Center for Economics & Business Research (CEBR) highlighted these struggles, emphasizing that the ongoing cost of living crisis continues to impact a significant portion of the population. The CEBR uses Asda’s Income Tracker to monitor households’ disposable income after accounting for taxes and essential bills. The latest data shows that, on average, households have £258 per week remaining after meeting their financial obligations, representing a marginal increase of just £8.28 compared to a year ago.
These financial challenges coincide with a period of economic uncertainty, where many workers are facing stagnant wages, a competitive job market, and escalating energy costs. While there has been a slight uptick in disposable income for households, concerns loom over potential inflation resurgence due to the repercussions of the Middle East conflict.
In contrast, higher-income households continue to experience growth in their surplus funds, benefitting from a smaller proportion of spending on necessities like food and greater resilience against price hikes in everyday goods.
According to Sam Miley, the head of forecasting and thought leadership at the CEBR, the Asda Income Tracker data for May 2026 reflects sluggish economic momentum, with modest growth in discretionary incomes. Despite a 3.3% annual growth rate, monthly discretionary income only increased by 0.6% and remains below levels observed earlier in the year.
Additional insights from Worldpanel by Numerator indicate a slight decrease in food price inflation from 3.1% to 3% in the past month, offering some relief to households striving to manage their budgets. However, experts warn of potential future increases in grocery costs due to the economic aftermath of the Middle East conflict.
During the four weeks leading up to mid-June, supermarket sales surged by 2.4%, as reported by Worldpanel. This spike in demand coincided with record-breaking temperatures in the UK, driving heightened sales of summer essentials. Suncare products saw a significant increase, with fresh beef burger sales up by 40%.
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