The latest monthly Asda income tracker indicates that UK households are continuing to experience financial strain, with living costs increasing more rapidly than wages in many parts of the country.
The average household had £254 ($335.85) in weekly discretionary income during September 2025 - a modest year-on-year rise of £2.81 and the first increase in growth since December 2024.
But inflation remains elevated at 3.8% — matching the highest level recorded since January 2024 — leaving lower and middle-income families still grappling with tight budgets.
The tracker shows that 60% of households in lower- to-middle-income brackets have seen their disposable income fall as essential expenses continue to grow faster than post-tax earnings.
Among the lowest-income households, a weekly deficit of £73 was recorded, highlighting the continued struggle to meet basic living costs.
Regional disparities also persist. Seven out of 12 regions were found to be worse off compared with a year earlier, with the West Midlands experiencing the steepest fall in weekly discretionary income, down £7.70 to £193.
London households reported the highest discretionary spending power at £334 per week, while Northern Ireland remained the lowest at £130.
Annual income growth has slowed across almost all parts of the UK, particularly in manufacturing areas such as the West Midlands, Yorkshire and the Humber, and the North West, all which have been affected by US export tariffs.
Sam Miley, managing economist and forecasting lead at Cebr, which produces the income tracker on behalf of Asda, stated: “While inflation has held at nearly twice the Bank of England's target, certain essential spending categories such as food are starting to see a slowdown in price rises, which will be welcomed by consumers.
“The upcoming November Budget has also hinted at further support for household energy bills, which could be an additional cause for optimism heading into the fourth quarter of 2025. That said, with the UK labour market cooling, the risk of a contraction heading into the new year cannot be ignored.”
Asda recently offered significant price cuts across product categories to support customers amid ongoing inflationary pressures.
The retailer reduced prices on 956 products, with an average decrease of 6%. Some items experienced reductions greater than 30%.
Among the key items affected are pantry staples such as pasta, cooking sauces, tea and coffee.
