Lowest Earning Households Face £71 Weekly Shortfall as Energy Costs Soar

The UK's lowest-earning households saw their spending power decline in the past year, while other income groups experienced growth. According to Asda's Income Tracker, the lowest-earning fifth now face a £71 weekly shortfall due to rising energy and essential costs.

As of July 2026, UK inflation rose to 2.9%, driven largely by higher household energy bills, which increased sharply to 4.6%. This has put increasing pressure on those least able to absorb the cost rises.

The gap between the highest- and lowest-earning households widened by £30 a week over the past year. Under-30s were hardest hit by essential costs, accounting for 68.2% of their gross income, exacerbated by higher housing costs and lower early-career earnings.

Ongoing economic pressure is unlikely to ease in the immediate term, with the Ofgem energy price cap set to reset again in October. However, some relief may be provided by the recently announced removal of VAT on energy bills.