The Newshound

Families left with just £260 a week as essential costs OUTPACE wages for first time in six months

From the Newshound archive · first published 21 September 2026 · last updated 22 September 2026.

Lower-income households face a £75 weekly shortfall against earnings, with transport, housing and energy the heaviest drains as inflation hits a five-month high of 3.1%.
Lower-income households face a £75 weekly shortfall against earnings, with transport, housing and energy the heaviest drains as inflation hits a five-month high of 3.1%.

Lower-income households are now running a £75-a-week deficit, with essential costs consuming more than they bring in, according to Asda's latest Income Tracker. Essential costs rose 3.9% in August, fractionally beating income growth of 3.8%, pushing spending power to its weakest level since March. Inflation has since climbed to a five-month high of 3.1%, and the Bank of England has signalled interest rates could rise further.

Transport, housing and energy costs are absorbing an ever-greater share of earnings, squeezing the money families have left over.

Economist Pushpin Singh of Cebr warned that 'inflation remains the primary risk to household spending power' with rates potentially rising again.

MoreLBCHousehold spending power hits six-month low – supermarketRetail SectorHousehold spending power hits six-month low, Asda finds - Retail SectorLondon Business NewsUK household spending power hits six-month low as essential costs outpace wages - London Business Newsbrentwoodweeklynews.co.ukHousehold spending power hits six-month low – supermarket - brentwoodweeklynews.co.uk
Read today's full feed at The Newshound →