One out of every five households is left with only £12 per week after covering essential expenses, according to recent research findings. The financial situation is even more dire for the lowest-earning 20% of families, who experience an average weekly shortfall of £73.
The Centre for Economics & Business Research’s study underscores the ongoing struggle many individuals face due to the persistent cost of living crisis. The research, based on Asda’s Income Tracker data, reveals that the average household has £258 remaining per week after settling taxes and essential bills, representing a marginal increase of just £8.28 compared to a year ago.
With many workers’ wages barely keeping up with inflation and challenges in the labor market, rising energy costs are further impacting household finances. Despite a slight improvement in disposable income, concerns loom as inflation, currently at 2.8%, may rise again due to the economic repercussions of the Middle East conflict.
While higher-income households see an increase in disposable income, individuals with lower earnings continue to face financial constraints as essential expenses form a larger part of their budget. Sam Miley, Cebr’s head of forecasting and thought leadership, noted the sluggish growth in discretionary incomes, with only a 0.6% monthly increase in May 2026.
Recent data from Worldpanel by Numerator indicates a slight decrease in food price inflation from 3.1% to 3% in the past month, offering some relief to those struggling to manage their finances. However, experts predict a potential rise in grocery bills in the near future due to the economic aftermath of the Middle East conflict.
Supermarket sales surged by 2.4% in the four weeks leading to mid-June, driven by record-breaking temperatures in the UK and a prolonged heatwave, which boosted demand for summer essentials. Suncare products witnessed a significant increase in sales, while fresh beef burger sales rose by 40%.