View more on these topics

Britons have 3.2% less disposible income, says ASDA

The average household in middle Britain had 3.2% less disposable income in January than in the same time last year.

The finding comes from a new income tracker report launched by ASDA, which takes into account income, tax and basic costs like food and shelter to measure the average UK household’s disposable income.

The report reveals that despite earnings before tax increasing by £22 a week last year, the average family was £5 a week worse off.

The supermarket chain attributes this to the increase in tax and essentials like food, housing and transport, now costing £27 a week more.

The report found that the cost of living has risen by 4.9% while earnings growth have begun to fall. Transport costs have also risen, increasing by 6.4%, including a 19% rise in petrol.

Andy Bond, ASDA chief executive officer, says: “Our 15 million customers expect us to make the cost of living more affordable for them. I believe this gives us the right to talk about the issues that affect how much money people have to spend.”

He adds: “The latest figures indicate that 2008 is going to be a tough year for customers and confirms what we’ve known for some time, that household budgets are being stretched to the limit.

“A combination of factors is pushing up the cost of living for millions of families, making it more important than ever for retailers like ourselves to keep prices as low as possible. Only that way will we keep a lid on inflation.”

Recommended

Weighty matters

Vanessa Blount, director of sales and marketing at eConveyancer, lost a whopping 3lbs last week as part of her training for the London Marathon.

Weekly Update

Rate highlights:Residential3 year fixed rate @ 5.35%Early Repayment Charge: 4% year 1, 3% year 2, 3% year 3.Lender Arrangement Fee: £3,995 (can be added to the loan)A good value fixed rates available for loans between £500k-1m and up to 75% LTVBTLEarly Repayment Charge: 6% for 3 yearsLender Arrangement Fee: 2%A low fixed rate to protect […]

Rate hikes add to first-timers’ woes

Nationwide has ramped up the rates on its 75% and 90% LTV deals by 0.2%.This is a further blow for first-time buyers following the withdrawal of all 125% LTV products from the market.Nationwide’s two-year fixed rate 90% LTV deal has been increased from 6.25% to 6.45% with no reservation fee.Its two-year 95% LTV fixed rate […]

Lenders doubt 100% market

Experts doubt the future of 100% mortgages following the recent exodus from the sector.Both Norrie Henderson, director of lending – Scotland at Bank of Ireland Mortgages and Simon Cocker, head of business development for the Dunfermline, said that if more lenders withdrew this could lead to the market disappearing completely. Both Bank of Ireland and […]

Pensions - thumbnail

Preparing for the changes to the pensions market

As more and more providers start to reveal their stance on the charge cap and removal of commission and active member discount pricing, we thought it would be worthwhile to look at what these are, and the steps businesses should be taking to prepare for this.

Newsletter

News and expert analysis straight to your inbox

Sign up