Super market chain Asda, in their regular assessment of household spending power, have estimated that the average UK household had £173 of discretionary income in July 2014. This comes close to the all-time high of £174 in January 2010.
Discretionary income is measured after tax and spending on essential items such as food and transport. It reflects the money that families have to spend on optional expenses such as holidays.
Mark Garnier MP said “The Asda survey is encouraging news and puts a different view on issues such as the cost of living. However, it does highlight that the picture is complex and difficult to understand. Sorting out Labour's chronic mismanagement of public finances and the economy was never going to an overnight, or even single Parliament, task. The legacy of gordon Brown's overburden of households through debt will take a generation to resolve in itself. But whilst we both acknowledge and take seriously the fact that inflation has risen faster than wages, this survey shows that the underlying picture may not be as bad as being portrayed. At the very least, it broadens the debate and challenges the perceived wisdom. As with all surveys, i will be contacting Asda to understand more about how they reach their conclusions."