From the TUC

Families £8 a week worse off

27 Jan 2011, by in Economics

The Asda Income Tracker shows that consumers’ discretionary income in December was £8 a week lower than in the previous December. This is the worst annual fall since Asda and the Centre for Economics and Business Research began producing these figures in March 2008.

Discretionary income – “spending power” in the report – is the income families have after paying taxes and “living costs” (food, clothing, housing costs, bills, transport, communication costs, health, children’s schooling, house maintenance and repair). The average UK household’s £172 a week is £8 – 4.5 per cent – lower than at the end of 2009.

Discretionary income was lower than it had been 12 months earlier in every month of 2010, underlining the fact that low household incomes characterise the under-powered economic recovery. This is unlikely to improve in the near future; as Charles Davis, economist at CEBR commented:

The VAT increase in January 2011 will keep inflation elevated this year, while public sector cuts will start in earnest. As such wage growth will remain modest. This is likely to result in lower levels of disposable income in real terms for families in 2011 compared to 2010.

2 Responses to Families £8 a week worse off

  1. Rosita Stefanyszyn
    Jan 28th 2011, 10:17 am

    As you are aware, things are getting worse out here for the people and the worst is yet to come. What the Labour party MUST put over is that they are concerned for ALL in the poorest, to the “squeezed middle” of the population.
    It is they who are being hit the hardest and proportionally paying far more to reduce the deficit out of their incomes.
    Would Cameron of Osborne and the rest of the super rich even notice a eight pound weekly reduction in their income!? Hardly life changing for them.
    Our Labour MPs MUST appear on chat/radio and television shows etc to talk directly, in easly understood language – not statistics – and get the point over that Labour is for ” protecting fairly, the welfare and quality of life for the said poor and squeezed middle”. Our past records show this.
    This would reach the parts of the population that switch off at the mere mention of politics especially are they all feel betrayed and abandoned with all he lies coming from the Tory lead government, they includ the

  2. Rosita Stefanyszyn
    Jan 28th 2011, 10:25 am

    As you are aware, things are getting worse out here for the people and the worst is yet to come. What the Labour party MUST put over is that they are concerned for ALL in the poorest, to the “squeezed middle” of the population.
    It is they who are being hit the hardest and proportionally paying far more to reduce the deficit out of their incomes.
    Would Cameron and Osborne and the rest of the super rich even notice a eight pound weekly reduction in their income!? Hardly life changing for them.
    Our Labour MPs MUST appear on chat/radio and television shows etc to talk directly, in easly understood language – not statistics – and get the point over that Labour is for ” protecting fairly, the welfare and quality of life for the said poor and squeezed middle”. Our past records show this.
    This would reach the parts of the population that switch off at the mere mention of politics especially as they all feel betrayed and abandoned with all the lies coming from thisTory lead government. (Unfortunately, all parties are being thought of in this way)
    Labour has to build trust again, projecting a supportive and caring image. People effected feel really scared and need something to believe in.
    We can do it!