Poor have gotten poorer and rich have gotten richer over last 18 months, data shows

It comes as Keir Starmer attempts to tackle the cost of living crisis

The amount of money households have left over after bills and essential spending, known as discretionary income, has fallen by 2.1 per cent since July 2024.

This comes as per data from Retail Economics.

However, they also say that the richest households have actually seen a 10.3 per cent increase in discretionary income.

It comes as Keir Starmer attempts to tackle the cost of living crisis, something he has repeatedly mentioned throughout his Christmas and New Year speeches.

For the bottom 40 per cent of households, incomes remain below 2019 levels.

Nicholas Found, from Retail Economics, said: “The cost of living crisis is far from over for many households, with the least affluent feeling it the most.

“The reality is that lower-income families are still grappling with the legacy of surging prices, with finances playing catch up as the cost of everyday products is significantly higher than it was four years ago.”