Lowest earning households in Northern Ireland left with under £53 a week after covering basic needs

The latest Household Expenditure Tracker released by the Consumer Council this week (29 May) reveals a stark picture of growing financial vulnerability for Northern Ireland’s lowest earning households.

Covering the period from October to December 2024 (Q4), the report shows that the poorest households are now left with less than £53 in discretionary income per week after paying for essentials like food, rent, energy and transport.

According to the quarterly report, Northern Ireland’s lowest income quartile (Quartile 1) has experienced an 18% drop in discretionary income since early 2021.

Despite a modest quarterly increase of £1.35 in discretionary income – rising from £51.45 to £52.80 – these households remain disproportionately affected by the cost-of-living crisis.

Anne-Marie Murphy, Director of Strategy & Emerging Markets at the Consumer Council, said:

“Between October and December 2024, while our lowest earning households saw a small rise in discretionary income of £1.35 per week, these households have less than £53 on average after spending on basics.

“Food costs continue to represent the highest proportion of basic spending for these families. At 23% of their basic spending, it now stands at the highest level since the Consumer Council has monitored these figures.

“This combined with limited discretionary income means that our most vulnerable households have the least ability to absorb even a small rise in food costs.”

Rising Food Costs Worsen Inequality

The Tracker reveals that households in the lowest quartile now spend 48% of their weekly budget on food, rent, energy, and transport – the highest share among all income groups. In contrast, the highest earning households (Quartile 4) enjoy over 13 times more discretionary income, highlighting a widening gap in financial resilience across income groups.

The latest data also indicates:

• Northern Ireland’s lowest earning households have 6% less income before tax than the UK average.

• Average post-tax weekly income for Quartile 1 rose slightly by 1.1%, from £281.22 to £284.23.

• Despite this, essentials spending also increased by 0.7%, from £229.77 to £231.43 per week.

While higher earning households in Quartiles 3 and 4 have nearly regained their pre-2021 spending power, the financial situation for Quartile 2 remains pressured, with a 29% decline in discretionary income since Q1 2021.

Urgent Support and Advice Available

In response to the findings, the Consumer Council is urging consumers to make use of the free tools and resources available on its website.

“To help consumers, the Consumer Council offers a variety of support and advice, including interactive tools to compare energy costs and advice on how to reduce your bills and make your money go further at www.consumercouncil.org.uk,” Ms Murphy added.

The tools include an Energy Price Comparison Tool, Home Heating Oil Tracker, and a Cost-of-Living Hub offering practical guidance on budgeting, energy savings, and fuel price comparisons.

About the Tracker

The Northern Ireland Household Expenditure Tracker, developed in partnership with Grant Thornton LLP, is a quarterly publication that monitors household income and expenditure across four income quartiles. It forms part of the Consumer Council’s wider research into consumer experiences across sectors including energy, transport, water, postal services, and food affordability.

You can view the full report here: Q4 2024 Northern Ireland Household Expenditure Tracker | Consumer Council