Household spending power takes another hit

Many families are still struggling to make their money stretch, despite a recent fall in inflation.

According to Asda’s latest income tracker, six in ten (60%) of UK households saw their spending power fall again in October. 

This was the fourth month in a row that families have become worse off.

Low and middle earners the hardest hit

Around 20% of UK households - who typically earn around £11,000 or less - now face a £74 shortfall every week.

And another 40% of households are only just making ends meet.

Figures showed that households earning £25,000 have just £10 left after paying for essentials.

Meanwhile, those earning £41,000 have only £90 remaining.

People in their 30s and 40s are struggling

Households aged 30 to 49 are also under pressure, with their essential costs adding up to £799 a month.

That’s higher than any other age group.

Similarly, they’re paying more in tax, with their monthly tax bill averaging at £281.

As a result, Asda believes this group are “particularly exposed to rising costs”.

Inflation still above target

Inflation actually fell to 3.6% in October.

That’s down from 3.8% in September and the first time in seven months that inflation has fallen.

But that’s still well above the Bank of England’s target of 2%.

And while the fall was fuelled partly by a slowdown in energy price rises, food prices actually went up by 4.9% in the year to October.

So it’s clear to see why shoppers aren’t feeling the benefit of falling inflation that’s hopefully peaked.

What can I do if I'm struggling?

If keeping up with day-to-day-expenses is getting harder, there are practical steps you can take.

Look at your spending

Make sure you know how much money you have coming in and where it’s going.

With this information, you can then prioritise your spending and see where savings could be made.

Check out our guide to how to create a budget to get started, and give our budget planner a try - it’s free and easy to use.

Find out what benefits you could claim

You might be entitled to financial support from the government to help you with your living costs.

Use our benefits calculator to see what you could be eligible to receive. 

Deal with problem debts

If you’re struggling with debt, contact us for confidential, practical and impartial debt advice.