Families have never had it so tough

Families are £14 a week worse off than they were a year ago, having been hit by the “biggest squeeze on record,” a leading retailer said.
By The Newsroom
Published 1st Oct 2011, 07:00 BST

The average UK family has been left with £162 of weekly disposable income – a 7.9 per cent drop compared with the same period in 2010.

Asda’s Income Tracker for August found last month’s tumble was the biggest decline since its records began in January 2007.

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Inflation increasing by more than wage growth, worsening labour market conditions and gas and electricity price hikes have all piled the pressure on households, the report said.

“It’s clear from this record drop in disposable income that British families have never had it so tough,” Asda chief executive Andy Clarke said. “Our customers are feeling the pinch – they’re clear they want more help to help make ends meet.”

The research also highlighted figures indicating soaring petrol prices had played a significant role. The cost of unleaded petrol shot up by 16.5 per cent over the year to August, while diesel prices rose 17.4 per cent.

The supermarket giant said that it had cut petrol prices this week by up to 2p per litre, placing a national price cap across its stations of 130.7p per litre for unleaded and 135.7p for diesel.

Related topics:ASDAInflation