Disposable income up 8 percent in June

LONDON (Reuters) - The average family was 12 pounds a week better off in June compared with the same month last year, as big interest rate cuts continue to boost disposable incomes, a survey showed on Tuesday.

The Asda monthly income tracker showed the average household had 164 pounds a week of discretionary income last month, 7.8 percent higher than a year earlier, when spending power was being hit by rapidly rising prices.

Asda chief executive Andy Bond said that, with unemployment rising, consumers might be reluctant to spend the extra money.

"Many families still face reduced household wealth and high debt levels, so although the increase in spending power is welcome, most people will probably end up saving it or using it to pay off debt," he said.

The Asda income tracker is compiled by the Centre for Economics and Business Research. Asda, the country's second-biggest supermarket chain, is owned by Wal-Mart Stores, the world's largest retailer.

(Reporting by Mark Potter; Editing by Dan Lalor)