Family finances get a boost in spending power

But only by £12 a year...

Vicky Shaw
Press Association
Thursday 28 July 2016 13:16 EDT
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Those employed in health and social work had the lowest average bonus of close to zero
Those employed in health and social work had the lowest average bonus of close to zero (iStock)

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The average UK household had a weekly disposable income of £201 a week in June, an average of £12 more than in June 2015, according to data from supermarket Asda.

The increase marks the 20th month in a row of double-digit growth in spending power, with total average discretionary income remaining at a record level since the income tracker started in 2008.

Households' spending power is the amount of cash they have left over to spend on outgoings such as holidays, sport, toys, cinema trips, eating out and savings, after expenses such as food, clothing, household bills, transport and school costs.

The continued momentum of the labour market and the falling cost of food and drink helped to ease pressure on purse strings, the report said.

In addition, larger household expenses such as mortgage interest payments also provided some respite for UK families.

The Centre for Economics and Business Research (Cebr), which compiles the report, said the gains households have made in spending power in recent years should help them to navigate the economic uncertainty following the referendum vote to leave the EU.

Sam Alderson, an economist at Cebr, said: "We continue to see a picture of broad increases in discretionary incomes across the country.

"In the uncertain economic environment the UK now faces, the gains in spending power seen in recent years cannot be understated. Whilst consumers have understandably lost some confidence in recent weeks, improved finances should provide some support in navigating the uncertain outlook."

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