The average UK family was £7 a week worse off in June 2010 compared with last year, while a nationwide poll revealed that just 34% of people currently feel secure in their job.
The latest Asda income tracker revealed that June saw the biggest fall in disposable income available to families since the beginning year. As a result, the average UK household had £171 a week of discretionary income - down from £178 in 2009.

The tracker, which reflect a sixth consecutive month of decline in family spending power, was supported by a nationwide survey, which revealed that one in eight people are concerned about losing their jobs.

Almost 40% of people are prepared to take a pay cut to avoid unemployment, while just 34% of people feel secure in their existing role. Despite this month's positive data, which revealed a 0.1% drop in unemployment for the three months to May 2010, the rate is expected to edge up over the medium term in the face of public sector job shedding.

The cost of living has also continued to rise at an elevated pace, with inflation levels at 3.2% in June - above the Bank of England's target for the sixth month in a row.

According to Asda, the main factors putting downward pressure on family spending power in June, included transport, which saw the largest year-on-year increase, up 8.9%, utility bills, which edged up for the third month in a row and mortgage interest repayments, which were up 4.6% annually.

Cebr economist Charles Davis commented: "The bottom line is that real family spending power has continued to fall and the outlook continues to look tough for households".

Asda ceo Andy Clarke added: "Our customers are telling us that not only do they have less money, but many are worried about their job security, and can't see their finances improving for some time." As a result, Mr Clarke explained that Asda planned to help "lessen the blow" and keep prices down.