Young people in the UK have experienced a “huge drop” in their disposable income by more than a fifth in the past year, figures compiled by the Asda supermarket group show.
A sharp increase in spending on essentials such as rent, groceries, transport costs and utility bills in July resulted in disposable incomes for the under-30s falling by 21.6 per cent compared to the same month last year, according to the latest Asda Income Tracker.
Essential spending among the under-30s rose by 12.5 per cent year-on-year in July to £774 per week, leaving individuals and families in this demographic with an extra £150 per week after paying taxes and essential bills.
The survey found that nearly 90 per cent of Asda customers are worried about rising energy prices and 87 per cent are concerned about rising inflation, which is forecast to reach a 50-year high of slightly more than 18 per cent in January.
Data analytics company Kantar said grocery price inflation reached 11.6 per cent this month.
Household disposable income for all demographics fell by 16.5 per cent year-on-year in July as soaring living costs continued to eat into family budgets.
This was the second-largest fall since the Income Tracker was first published in 2008 meaning households were on average slightly more than £160 per month worse off compared to July 2021.
The supermarket chain has also recently launched an online ‘Essential Living Hub’, where customers are able to see a large range of hints and tips on how to save energy and budget better.
Asda has also speeded up the launch of its new ‘Just Essentials’ budget-friendly value range.
A number of food retailers across the UK and Europe are looking at ways to help customers as they brace themselves for a difficult winter ahead.
Budget chain Iceland Foods said this month it would allow shoppers to pay for their food in instalments and French supermarket group Carrefour said on Monday that it was freezing prices on 100 everyday products from tinned sardines to rice and dishwashing liquid.
