UK's Lowest-Earning Households Suffer £71 Weekly Shortfall Amid Rising Energy Costs

The lowest-earning households in the UK are bearing the brunt of rising energy costs. Asda's Income Tracker found that these households saw their spending power fall over the past year, with a £71 weekly shortfall in July.

This group has an average income of around £11,000 and spends a greater proportion of their earnings on essentials. Essential costs rose 3.6 per cent in July, up from 3.1 per cent in June, marking their first acceleration since March.

The gap in disposable income between the highest- and lowest-earning households widened by £30 a week compared with the previous year. UK inflation increased to 2.9 per cent in July from 2.6 per cent in June, with household energy bills among the main drivers of the rise.