Rising living costs have stripped out any increases in pay, and the average family is £9 a week worse off than in 2007.

The average wage has increased by £22 a week during the past 12 months but this additional income has not improved the standard of living for the majority of Brits. Indeed they are more likely to need to seek debt advice as the typical family now has 6.5% less money to spare, averaging at £131 per week.

This research, by supermarket group Asda, shows wages have increased by 3.2%, but the cost of living has increased by 6.8% for items such as food, utility bills and petrol prices.

Chief executive of the group said: “Our latest report shows clear evidence of the squeeze on real disposable incomes.”