Families have £12 a week more disposable income in their pockets than this time last year, according to the latest Asda income tracker.
With unemployment falling to its lowest level in 11 years, average discretionary income reached £201 a week, said the supermarket.
The weekly increase works out at 6.2% on average, compared with the same period last year, and is the 20th consecutive month of double-digit growth in spending power, according to Asda.
However, while discretionary income rose overall, the rate of growth in spending power slowed slightly, falling below 7% for the first time in two months.
“Whilst the latest data shows a slight slowing in spending power growth, we continue to see a picture of broad increases in discretionary incomes across the country,” said economist Sam Alderson.
“In the uncertain economic environment the UK now faces, the gains in spending power seen in recent years cannot be understated. Whilst consumers have understandably lost some confidence in recent weeks, improved finances should provide some support in navigating the uncertain outlook.”
An Asda spokeswoman said: “While a rise in consumer price inflation and transport costs influenced the overall growth in consumer spending power, families across the UK continued to enjoy some buoyancy in their bank balances last month thanks to a continued fall in essential items and steady levels of wage growth. Building on this, record levels of unemployment throughout Britain should boost confidence, and it’s pleasing to see that this particular trend has led to upward swings in income growth across the regions and the home nations, as evidenced by the changes seen in the labour markets of the North East of England and Wales. It remains to be seen how recent events will affect disposable income in the coming months.”