New research explains how much money the average person has left over after paying for essentials. People across the UK are now earning more, spending less on bills, and have more disposable income compared to last year. According to the latest Household Money Index report from MoneySuperMarket, the average person has £684.70 of disposable income left over each month in September 2024. This is £60.70 more than the previous year.
The report, based on 10,000 UK survey respondents tracking 31 bills and outgoings quarterly, shows a decrease in spending on 20 of the measured bills. However, there has been a dramatic increase in spending on non-essential products and services. Spending on home repairs rose by 40%, subscription services such as TV and music streaming increased by 41%, and gym memberships have seen a significant jump.
The average daily expenditure on bills and outgoings over the past year is £49.06. The study reveals regional variations, with Southampton identified as the place in the UK where disposable income stretches the furthest. People in Liverpool spend the most on bills, while London and Manchester remain the most expensive places to live. Despite higher spending in London, residents end up with similar disposable income as those in Manchester.
Peter Duffy, CEO of MONY Group, the parent company of MoneySuperMarket, notes the rise in disposable income. People are spending more on home improvements, subscriptions, and gym memberships. The index also highlights the success of MoneySuperMarket’s SuperSaveClub, with over 500,000 members saving £122 million since last year.
The report provides valuable insights into UK spending habits, highlighting how people are improving their financial resilience while seeking savings where possible. With increased disposable income, individuals are prioritising spending on leisure, reflecting a growing trend towards personal and lifestyle investments.