Future Retirement Success
  • Politics
  • Business
  • Investing
  • Stocks
  • Politics
  • Business
  • Investing
  • Stocks

Future Retirement Success

Business

Household disposable income across the whole of the UK at highest in two years

by January 23, 2024
January 23, 2024
Household disposable income across the whole of the UK at highest in two years

The discretionary spending power of households across all parts of Britain has increased for the first time in two years.

Wage growth and easing inflation left families with more money to spend on treats in the final quarter of 2023, according to the latest Asda Income Tracker.

After paying bills and essentials, the average UK household had a disposable income of £224 per week in the fourth quarter, the highest since the start of 2022.

The tracker, independently compiled by the Centre for Economics and Business Research, found that London continued to have the strongest disposable income, with the average household in the capital seeing an increase of 10.1 per cent to £301 per week across the quarter. Wales recorded the weakest increase in disposable income, at 4.6 per cent to £178, mainly because of weak earnings growth.

Despite the overall improvements, disposable income is down from before the pandemic. Compared with the peak of £246 in the first quarter of 2021, UK-wide discretionary income has fallen by 9.1 per cent.

However, a leading forecaster has predicted that household income is likely to improve further this year as interest rate cuts are expected to lead to a fall in borrowing costs.

The EY Item Club, which is closely followed because it uses the Treasury’s model of the economy, said the inflation rate was expected to average about 2.4 per cent this year, lower than the 2.8 per cent it previously predicted in its autumn forecast.

The positive forecast for inflation is anticipated to lead to a “significant” reduction in the bank rate for 2024. It is now predicting rates to fall from 5.25 per cent currently to 4 per cent over the year ahead, with the first cut coming as soon as May.

The EY Item Club said the year ahead was set to see a “turning point” for Britain’s stagnating economy thanks to falling inflation, interest rate cuts and tax reductions. It has upgraded its outlook for UK growth in 2024, to 0.9 per cent from the 0.7 per cent it previously pencilled in last October.

Growth is expected to step up again in 2025, with an expected increase in gross domestic product of 1.8 per cent compared with the 1.7 per cent previously predicted.

Read more:
Household disposable income across the whole of the UK at highest in two years

0
FacebookTwitterGoogle +Pinterest
previous post
Morning Glory: Name the veep now
next post
Lower government provides Hunt room in spring budget for tax cuts

You may also like

Proposed development of Las Vegas-style Sphere in east...

January 9, 2024

Alternative investment platform TheCarCrowd target global expansion after...

May 13, 2024

UK house prices rise 4% as buyers rush...

April 1, 2025

JCB postpones 500-job hiring spree as chancellor’s tax...

January 13, 2025

Frasers blocks Boohoo name change to Debenhams amid...

March 29, 2025

House prices fall for fourth month in a...

August 7, 2023

Remaining Vigilant and Committed to Combating the Spread...

July 4, 2024

Digital health platform Awell secures $5m investment to...

September 19, 2023

Sadiq Khan Unveils Plan to Create 150,000 High-Quality...

April 3, 2024

Harriet raises £1.2m to transform HR with AI

December 7, 2023

    Get free access to all of the retirement secrets and income strategies from our experts! or Join The Exclusive Subscription Today And Get the Premium Articles Acess for Free

    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Recent Posts

    • Trump Accounts Won’t Replace Social Security or Help Americans Build Significant Wealth

      August 4, 2025
    • How Special Interests Keep Bad Laws on the Books: The Case of the Jones Act

      August 4, 2025
    • Four Cymru partners with Wales Tech Week to showcase Welsh innovation on the global stage

      August 4, 2025
    • Rachel Reeves urged to apply VAT to private healthcare in bid to fund NHS

      August 4, 2025
    • Trump accuses Senate Democrats of using nominee confirmations as leverage for funding deals

      August 4, 2025
    • UK high street banks lose £100bn in savings as customers chase better rates online

      August 4, 2025

    Categories

    • Business (8,658)
    • Investing (2,170)
    • Politics (16,293)
    • Stocks (3,228)
    • About us
    • Privacy Policy
    • Terms & Conditions

    Disclaimer: futureretirementsuccess.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2025 futureretirementsuccess.com | All Rights Reserved