Discretionary spending power has shrunk across three-quarters of the UK, according to the Asda Income Tracker.
In June, the average UK household’s discretionary income shrunk by 47p year on year to £198 per week.
Total household income was, on average, £766 per week. After essential spending of £443 and taxes amounting to £125 that left £198 for discretionary spending.
Consumers in Northern Ireland and Wales were the worst-affected, with family spending power down £4.60 and £5.90 per week respectively.
The North East was the only region where households were significantly better off, with the average family £4 richer than at the same point last year.
Overall, June was the third consecutive month of year-on-year decline.
In a boost to consumer spending power, inflation unexpectedly fell in June. However, it is likely to rise once more in the coming months as the depreciation of sterling following Brexit begins to bite.
Despite the vast majority (78%) of British consumers believing that the cost of living would rise, 46% felt neutral about the current UK economy. Just over one third (35%) felt positive about the economy while only 18.5% felt negative.