Under pressure families are £13 a week worse off than they were a year ago, as deteriorating employment conditions and high inflation continue to erode their spending power, according to a report.
Asda's latest Income Tracker found UK families typically had £164 a week left of income in October after paying regular bills such as food, clothing and housing costs, 7.1% less than a year ago.
The disposable income figure for October is £2 a week higher than £162 seen the previous month.
But despite the slight month-on-month increase, Charles Davis, managing economist of the Centre for Economics and Business Research (Cebr) which compiles the report, said: "Worsening employment conditions, alongside the persistently elevated rate of inflation, are continuing to erode household real incomes and family spending power."
He said that although inflation is expected to fall further after already dropping off slightly, weaknesses in the labour market will continue.
He warned: "UK households will remain under pressure for some time."
Official figures released earlier this month showed that youth unemployment has topped one million.
The Asda report said spiralling utility bills were one of the main factors putting pressure on families in October, as gas prices rose by 24.1% over the year and electricity went up by 14.9%.
Andy Clarke, Asda president and CEO, said creating jobs had to be the main priority for getting Britain back on track.
He said the cost of basics was also on the list of customers' concerns, adding: "That said, I welcome the fact that disposable income shows a slight improvement from last month."
