Asda: Families In Three UK Regions Better Off Than Before The Pandemic

The latest figures from Asda’s Income Tracker reveal that households in Scotland and East Midlands are now better off than they were before the Covid pandemic.

Families in Scotland have seen the amount they are left with each week after paying bills and spending on essentials increase by £10 since the pandemic, to £257 per week.

Disposable income in the region increased by 14.7% on the year in Q3 2024 and now exceeds the peak amount of £247 recorded more than three years ago in Q1 2021.

Households in the East Midlands witnessed their own increase, with their disposable income also now exceeding a peak of £212 per week in Q1 2021 at £217 in Q3 2024.

Improvements in the regions have largely been driven by inflation continuing to fall and more robust job markets when compared to the rest of the UK.

London had been the only other part of the UK up until now where disposable incomes had surpassed its own pre-pandemic peak recorded over three years ago.

Households in the capital continue to benefit most from improving conditions and once again have more money left in the pot than any other UK region after paying their bills, with £323 per week on average.

During Q3, all UK regions enjoyed double digit growth in disposable income, the UK-wide figure grew by 12.7% on the year, to an average of £248.

This growth has primarily been driven by a stronger than expected fall in inflation, which hit a low of more than three years in September at 1.7%.

Notable declines in the transport sector, in particular airfares and price of fuel, were the main drivers of this fall, which takes inflation below the Bank of England’s 2.0% target.

Despite all UK regions benefiting from falling inflation, there’s still notable disparities between regions when it comes to the amount of disposable income households have left over.

Northern Ireland continues to record the lowest disposable income value at £129 per week, a stark £194 discrepancy when compared to the average per week in the capital. 

Reacting to this month’s Income Tracker, Sam Miley, Managing Economist and Forecasting Lead at Cebr, said: “The stronger-than-expected fall in inflation in September has helped to support spending power growth, taking three regions’ spending power above their respective pre-crisis peaks.

“Further improvement in the Income Tracker is expected for the rest of this year and into next, with income growth outweighing inflation. Announcements at the upcoming Budget could affect this trajectory. One likely change is a hike to fuel duty, which would partially reverse the recent deflation experienced in the transport category and put downward pressure on household spending power, all else equal.”

Asda continues to invest in new initiatives to support customers, colleagues and communities. The retailer recently announced that its Cashpot for Schools initiative, fronted by Joe Wicks, has hit the landmark figure of £3.5 million raised for primary schools across the UK.

The industry-first campaign sees Asda donate 0.5% of the value of its customers’ shopping to a primary school of their choice every time they shop using Asda Rewards - with £7.5 million up for grabs in total.

You can view the full Income Tracker, here.

Source : Asda

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