Families are finding themselves an average of £7 a week worse off than a year ago as hikes in the cost of living eat into income, new figures have indicated.

Households pulled in about £17 a week more before tax during February than they did a year earlier, but the increase was more than outweighed by a £24 jump in the weekly cost of essentials such as food, transport and fuel.

Research carried out for Asda found that as a result people had an average of just £133 a week left to spend on leisure and entertainment after meeting their essential outgoings.

That figure is 5.2% or £7 a week less than they had in February last year, according to the research by the Centre for Economics and Business Research.

The fall in disposable income was driven by a 6.2% jump in transport costs, especially petrol - which soared by 20.3% - during the past year.

Families' incomes face further pressure from a 5.6% year-on-year rise in the price of food and non-alcoholic drinks as well as a 3.5% rise in energy bills, with five of the UK's six major gas and electricity providers hiking their prices during the month.

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