# Four fifths of UK households saw disposable income fall in August, says Asda
Author:  Pal Sinha, Barnali 
Author URL: https://financedigest.com/author/pal-sinha-barnali
Published: 2022-09-23
Category: NEWS
Category URL: https://financedigest.com/category/news
Meta Title: 80% of UK Households Hit by Income Decline as Living Costs
Meta Description: Find out how 4 in 5 UK households are feeling the pinch of rising essential living expenses, with disposable income decreasing as wage growth lags behind
URL: https://financedigest.com/four-fifths-of-uk-households-saw-disposable-income-fall-in-august-says-asdahtml

![undefined](https://prod.superblogcdn.com/site_cuid_cm5qst7v3003gwirgwqtxn8i8/images/2022-09-23t080513z1lynxmpei8m080rtroptp4asda-sustainability-1736815161592-compressed.jpg)

LONDON (Reuters) – Four in five UK households saw their disposable income decrease in August compared to the same month last year, as rising living costs continue to outstrip wage growth, UK supermarket group Asda said on Friday.

Confidence levels among Britain’s consumers are at record lows as they struggle with the accelerating cost of living. Wages are failing to keep pace with inflation that was 9.9% in August.

The Asda Income Tracker showed that despite annual wage growth of 5.5% in the three months to the end of July, 80% of UK households were worse off in real terms in August due to an 11.8% [increase in spending](https://www.financedigest.com/should-we-be-more-cautious-about-contactless-1-in-4-young-adults-with-contactless-cards-say-theyve-increased-their-spending.html "Should we be more cautious about contactless? 1 in 4 young adults with contactless cards say they’ve increased their spending") on essentials such as rent, mortgage payments, fuel, groceries, and transport costs.

The tracker showed [average household disposable income fell by 32.32 pounds](https://www.financedigest.com/average-annual-uk-food-bill-set-to-rise-454-pounds-as-inflation-soars.html "Average annual UK food bill set to rise 454 pounds as inflation soars") ($36.14) a week in August.

Low-income households continue to be disproportionately affected by the [cost-of-living crisis](https://www.financedigest.com/british-shoppers-defy-cost-of-living-crisis-at-christmas.html "British shoppers defy cost-of-living crisis at Christmas"), the data showed.

These families, who account for 20% of UK households, had “negative disposable income” in August, [resulting in a shortfall of 60 pounds per week between what they earned](https://www.financedigest.com/astrazeneca-lifts-2022-earnings-outlook-as-cancer-drugs-boost-results.html "AstraZeneca lifts 2022 earnings outlook as cancer drugs boost results") and what they needed to spend on essentials.

Separately on Friday, market research firm GfK said British [consumer confidence](https://www.financedigest.com/weary-wall-street-cheers-improved-consumer-confidence.html "Weary Wall Street cheers improved consumer confidence") slid this month to its lowest level since records began in the mid-1970s, with scant sign of any boost from Prime Minister Liz Truss’s announcement of additional support for households.

($1 = 0.8944 pounds)

(Reporting by James Davey; editing by William James)


---
This blog is powered by Superblog. Visit https://superblog.ai to know more.
---