Brits now have £175.76 less disposable income than they did last year, according to MoneySuperMarket's latest Household Money Index (HMI). The research shows that while spending on household bills and everyday outgoings has decreased, take-home incomes dropped even further, leaving people with less money overall each month.
The average reported monthly post-tax income is now £2,203, down from £2,558.58 in October 2025, a fall of £355.58. Meanwhile, an average of 67% of income now goes toward household bills and daily outgoings, 2% more than last year.
Regional breakdown of disposable income
Metro has revealed how much disposable cash Brits have to play with each month depending on where they live, exposing a stark regional divide. Notably, places with the highest costs are not always where people have less money to spare.
In Belfast, the average monthly income after tax is £2,203.25, with £1,400.49 going to essential spending, leaving £802.76 disposable income. This means people in Belfast use 64% of their income on essentials, the lowest proportion in the survey.
Londoners bring in an average post-tax monthly income of £2,602.50, with £1,703.60 going toward essentials, leaving £898.90 in disposable cash. This means about 65% of local earnings are tied up in bills and essentials, making London the second-lowest city overall for the proportion of income spent on necessities, despite being one of the most expensive cities in the UK to live.
Norwich feels the squeeze the most, with the lowest amount of disposable income of any city measured by MoneySuperMarket. With an average monthly income of £1,888.33 after tax and £1,459.90 (77%) going to essentials, residents are left with £428.43 disposable income.
Rising costs and expert advice
Household costs in the past quarter are starting to creep up again. Monthly outgoings increased by £23.31 between July and October, from £1,454.54 to £1,477.85, while reported monthly income after tax rose by just £2.50 in the same period. That means the average person had £20.81 less left over after bills and outgoings than they had three months ago.
Energy spending has increased by 2% since the summer, water bills by 3% and vehicle fuel by almost 12%. Groceries have fallen from £187.90 to £180.20 (a 4% decrease) compared with October 2025.
Kara Gammell, personal finance expert at MoneySuperMarket, said: 'Compared with a year ago, people report spending less on a range of household bills and everyday costs. But reported incomes have fallen even faster, leaving the average person with around £175.76 less each month after those costs have been covered.'
'The regional picture tells a similar story. The places with the highest household costs aren't always the places where people feel the greatest squeeze. What matters is not just what people spend, but how much income they have left afterwards.'
Her advice is to 'regularly review your outgoings, understand what you're paying for and compare your options to create some much-needed room in your monthly budget.'
