Household disposable income falls by 18% in June

The average household was £175.80 worse off in June this year than they were in the same month in 2021, according to the Centre for Economics and Business Research (Cebr)

June’s fall in disposable income marks the eighth consecutive month of decline and leaves the average household with £200 left to spend after taxes and essential bills

The research also revealed a record drop in average household disposable income of £43.95 a week in June – equivalent to £175.80 per month with household disposable income falls for the eighth consecutive month.

20% of UK households had ‘negative disposable income’ of £60 per week in June. Disposable incomes fell by 18% in June compared to the same period last year as the cost of living crisis continued to squeeze family budgets.

Soaring living costs, up 11% year-on-year in June, meant that families were on average £43.95 a week or £175.80 per month worse off compared to June 2021.

The average household had £200 per week left after paying tax and essential bills last month.

The cost of living crisis is particularly hard for low-income families with 20% of UK households now having ‘negative disposable income’ – resulting in a shortfall of £60 per week in June between what they earned and what they needed to spend on essentials such as mortgage, rent, utility bills and transport costs.

	Household income (weekly average)	Y-o-Y% change	Essential spending (weekly average)	Y-o-Y% change	Household discretionary income (weekly average)	Y-o-Y% change
June 2022	£890	2.9%	£537	11%	£200	-18%