Asda’s latest Income Tracker report revealed that most UK households saw an improvement in their disposable income the last month. According to the supermarket’s figures, the average household had £261 per week to spend after living costs, with the tracker noting a £4.24 per week year-on-year rise in January 2026.

Despite the positive trend, Asda‘s research found that millions of Brits still appear to be worse off than before the cost-of-living crisis.

Asda reported that those under 30 had less to spend on non-essential items in January 2026 than in the same period last year.

The retailer added that young people are £20 worse off than before the cost-of-living crisis, with an average disposable income of £175 per week, down from £195 per week at the peak in March 2021.

The figures are the same for those aged between 30 and 49.

According to the report, the cause of young people’s decline in disposable income is the rising rent costs they have faced in recent years. Asda said that individuals are allocating around 70% of their gross income to essentials, leading them to face the highest average weekly tax bill.

It also found that those in the lowest 20% of earners also remain worse off, with a shortfall of £71 between what they earned last month and what they spend on essentials, including food and utilities.

Speaking on the findings, Sam Miley, head of forecasting and thought leadership at Cebr, said: “The Asda Income Tracker looks to have started 2026 in a similar fashion to how it ended 2025.

“Nominal discretionary incomes have seen modest year-on-year growth, driven primarily by slowing inflation, as gross income growth has continued to slow.

“Considerable scarring remains from the double-digit inflation of the cost-of-living crisis, particularly for those on the lower end of the income distribution, for whom purchasing power is yet to fully recover.”

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