High gas and electricity bills put more pressure on family budgets last month, according to Asda's latest Income Tracker.
The supermarket chain revealed the average UK household had £160 of disposable income to spend per week in December 2011, down by 7.2 per cent year on year.
It pointed out the costs of lighting and heating the home have continued to rise, with electricity prices rising by 14.1 per cent and gas prices up by 19.8 per cent on the corresponding month of 2010.
Commenting on the results, managing economist at the Centre for Economics and Business Research Charles Davis said weak prospects in the employment market will increasingly put strain on household budgets.
"Unfortunately, it is expected to be some time before consumers start to see significant gains to real incomes," he added.
Despite the negative outlook, consumers can at least look forward to cheaper utility bills in the future, with all of the Big Six providers recently announcing price cuts.
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