Which demographic group in the UK faces declining spending power?

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Accepted Answer

The lowest-earning 40 per cent of the UK population faces declining spending power
Data for 2025 from supermarket Asda and the Centre for Economics and Business Research shows that the lowest-earning 40 per cent in the UK had less spending power in 2025 than they did in 2021. This indicates a decline in purchasing ability for that group over the four-year period.
The group identified in the 2025 spending-power data
The demographic group singled out is the lowest-earning 40 per cent of the UK population. The measure is framed as “spending power,” comparing outcomes between 2021 and 2025.
The decline is measured against 2021 levels
The finding is specific to the period from 2021 to 2025, with the 2025 figure lower than the 2021 baseline. The contrast is drawn even as average real disposable income is described as rising in the UK.
The figures are tied to Asda and the Centre for Economics and Business Research
The spending-power comparison comes from a dataset produced by supermarket Asda together with the Centre for Economics and Business Research. The reported result focuses on the lowest-earning 40 per cent rather than the whole population.
The comparison is about purchasing ability, not average income
While the data notes that average real disposable income was rising, the lowest-earning 40 per cent still ended up with less spending power than before. The demographic group answer therefore centres on the bottom 40 per cent, not the overall average.

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Which demographic group in the UK faces declining spending power?

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