Cheaper energy bills are partly responsible for families across the UK being around £3 better off each week, according to new research from the Asda income tracker.
The survey revealed that the average household weekly budget has risen by nearly two per cent since April last year, partly as a result of energy companies lowering their prices in recent months and helping families free up more funds.
People in London have seen the smallest increase, with just £1 extra per week, while residents in the south-west have enjoyed an average of £5 extra.
Andy Bond, Asda president and chief executive officer, said: "With weak growth in average earnings and falling house prices, it's vitally important that retailers work hard to rebuild consumer confidence as quickly as possible."
He added that with job insecurity still rife throughout the UK, there remains considerable progress to be made.
All the UK's major energy companies have lowered their prices in recent weeks, but they have been criticised for introducing only small reductions months after the end of winter.
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