Households were £10 a week better off last month than they were in July 2015, according to Asda’s latest Income Tracker.

The average UK household had £202 of discretionary income per week in July 2016, following a 5.4% rise in spending power, it claimed.

The figures mark the 21st consecutive month of a double-digit rise in spending power in the survey, although growth in spending power slowed to its lowest rate since October 2014.

The survey also reveals the extent of the earnings divide, with highest-earning households taking home 10 times more than lowest income households in July 2016 in gross income.

The gross income of the highest-earning households has grown by 2.3% since July 2015 - nearly eight times more than the lowest households.

“On one hand, it’s encouraging to see that spending power has on average increased by 5.4% since last year, while on the other the data demonstrates the significant gap between households when it comes to discretionary income,” said an Asda spokeswoman.

“Falling food and drink prices (-2.6%) provided a welcome relief to families’ wallets across the board, and with wage growth remaining above inflation levels for the time being, households are likely to make the most of this again next month.”