'Spending power boost' for households

The average amount of disposable income families have to spend per week has risen by £16 in the last 12 months, according to new research.

Asda's Income Tracker shows that in February UK households had £184 a week on average left over, after all the essentials were covered.

The figure is 9.2 per cent greater than during February 2014.

It is the 17th consecutive month in which people have had more money in their pockets than the year before.

There has not been such a prolonged period of growth since 2009, when policymakers at the Bank of England cut the base rate of interest.

Falling fuel, food, and gas and electricity prices are the main reasons for the increase in spending power, the report says.

Petrol was around 16 per cent cheaper in February than it was in the same month last year, while food and drinks other than alcohol fell 3.3 per cent in price, on average.

Gas and electricity cost 2.4 per cent less in February compared to a year ago.

Copyright Press Association 2015