Losing income for the fourth month in a row as one set by five brits cannot cover essential costs ahead of the Reeves budget
Incomes have fallen for the fourth month in a row, with new data revealing that one in five UK households can no longer afford their essential expenses – Piling pressure on Chancellor Rachel as she considers her budget days away.
ASDA’s latest income statement, compiled by the Center for Economic and Business Research (CEBR), shows that low-income families – and 60% of all UK households – income growth is failing to keep pace with rising taxes and essential costs.
Households on the lowest incomes, earning an average of £11,000 a year, ended October with a deficit of 74 weeks every week, worse than the previous year. Those in the lowest bracket had $10 left after the milestone, a year-over-year decline of 17%. Middle income families (£41,000 average) are left with £90 – a marginal fall of 1%.
In contrast, the richest 20% ended the week with an income of £ 909, up 2% last year, showing the division of growth in household strength such as inflation and tax changes.
The tracker shows the essential costs of rose 4.6% year on year, driven by food, housing and services – Categories account for a large share of low imports among low income families. Young families face the biggest cuts: Those under 30 spend 69% of their income on essentials, mainly due to rising rental costs.
This warning comes as unemployment hits 5%, labor market conditions are weak and returns to stimulus measures are expected to boost the currency’s $20.
Sam Miley, head of forecasting at Cebr, said the outlook remained weak despite rising inflation.
“The worst of September’s labor market data reflects weak demand and employment costs,” he said. “The prospects for the UK economy are not helped by the high probability of a decent income in the November budget.”
Monthly income lost and in October, fell by 1.01 from 1
Household income grew by 3.6%, slightly slower than last month. Those aged 30-49 recorded the highest average income at £1,384 a week, followed by those 50-64 at $1,264.
Economists have warned that low-income earners face further pain over the Christmas period as the cost of living remains elevated, while any tax hike risks Wednesday’s budget being threatened.
