Families across northern England have about £60 less to spend each week after covering essential costs compared with households in southern regions, according to new figures from Asda's latest Income Tracker.
The latest data shows households across the North East, North West and Yorkshire and the Humber had an average of £202 a week left after essential spending during the three months to June 2026.
By comparison, households in the East of England, South East, London and South West had an average of £262 a week remaining after paying bills and other essential costs, resulting in a gap of £60.
London leads, North East lags
London households recorded the highest level of discretionary income, with an average of £337 a week left after essential spending. The East of England ranked second at £285 while also recording the strongest income growth.
Higher earnings, stronger job opportunities and steady income growth helped households in these regions have more money left over, although rising housing costs are putting increasing pressure on budgets in the capital.
In contrast, households in the North East had just £165 a week remaining after essential spending – less than half the amount available to households in London. Yorkshire and the Humber households had an average of £212 left over each week.
Labour market challenges
The report highlights ongoing labour market challenges in both regions, with unemployment rates of 5.7% in the North East and 5.8% in Yorkshire and the Humber, reflecting longer-term economic shifts away from traditional industries.
The findings come as the Government increases its focus on devolution and regional economic growth, with greater emphasis on boosting investment and opportunities across the UK.
Despite inflation easing to 2.6% in June, helped by lower energy prices, renewed inflationary pressures could continue to squeeze household budgets in the months ahead.
Expert reaction
Reacting to this month's Income Tracker, Sam Miley, head of forecasting and thought leadership at Cebr, said: “Q2 2026 saw annual growth in the UK-wide Asda Income Tracker pick up to its highest rate in a year, with the pass-through of inflationary pressures from the war in Iran more muted than many anticipated. However, UK-wide progress hides significant regional disparities. Discretionary incomes in London are estimated to be over double those in the North East.”
“Looking ahead, significant headwinds remain for the Income Tracker. A resumption of hostilities in the Middle East, as well as recalibrated energy bills, will add new inflationary pressures throughout the second half of the year. For lower-income households, for whom a higher proportion of their essential spend goes on energy bills, these pressures will be felt far more acutely. We therefore would expect existing regional inequalities to be exacerbated over the rest of the year.”
Asda said it remains committed to helping families across the UK and is consistently recognised for having the lowest prices among the traditional supermarkets in independent surveys carried out by Which? and The Grocer.
