It's no shock but we're all skint and it's only going to get worse
In case you didn’t already know it, families are getting closer and closer to the mythical ‘breadline’ with most people seriously worse off than they were last year - £728 a year worse off, if statistics are to be believed.
The Asda Income Tracker says that there has been a 7.9 per cent drop in average household discretionary spending, meaning that after the essentials are paid for (mortage/rent, food, energy etc), the average family have just £162 a week left in their pockets - a drop of £14 a week, or the equivalent of a pay cut of almost £1,000 per year for someone on average earnings.
The study has been running for four years and Asda say that the figures are the worst yet, and that 90% of us are saying that things are tougher than they were a year ago.
The income tracker is compiled in partnership with the Centre for Economics and Business Research, and their managing economist, Charles Davis thinks it could get worse. He said: “Rising unemployment has added further pressure to household finances in recent months, compounding the squeeze on spending power caused by high inflation and weak earnings growth. Family spending power has fallen sharply compared with a year ago. With the UK economy in a particularly precarious state at the moment, things could get worse before they get better.”
Here’s a graph. Hope you like it. You can print it out and burn it for heat when you’ve finished looking at it if you like.