Lowest-earning NI households left with just £53 a week after essential bills
Northern Ireland’s lowest-earning households are being left with an average of just £53.17 a week after taxes and basic household spending, new research has revealed.
The latest Northern Ireland Household Expenditure Tracker from the Consumer Council shows some improvement in household finances at the beginning of 2026 — but spending power remains dramatically below where it was five years ago.
For the lowest-income quarter of households, discretionary income has fallen by 35.1% in real terms since the first quarter of 2021, dropping from an inflation-adjusted £81.36 to £53.17 per week.
And despite being further up the income scale, households in the second-lowest income group have suffered an even steeper decline, with their discretionary income down 45.6% over the same period.
Small recovery — but households remain worse off
The figures cover January to March 2026 and measure discretionary income — broadly, the money households have remaining after taxes and basic spending.
The Consumer Council said discretionary income increased across all four income groups during the quarter.
However, once earlier figures are adjusted to Q1 2026 prices, none of the four groups has recovered to the spending power it had at the beginning of 2021, before the major cost-of-living pressures of recent years.
Lowest-earning households, with an average gross household income of £15,622, saw discretionary income fall from £81.36 a week in Q1 2021 to £53.17 in Q1 2026.
Households in the second quartile, with an average gross income of £31,277, experienced the largest percentage deterioration. Their discretionary income dropped from £198.49 to £107.99 a week — a fall of 45.6%.
Higher-income households have also been affected.
Discretionary income among the third quartile fell 22.8%, from £410.91 to £317.12 per week, while the highest-earning quarter experienced a 22% reduction, from £933.76 to £728.48.
More than half of lowest earners’ budgets going on essentials
The pressure becomes particularly clear when looking at where the lowest-income households are spending their money.
According to the Consumer Council, 54% of their household budget is being spent on everyday essentials including food, housing, electricity, phone and internet services, transport, gas and other fuels.
Food and non-alcoholic drinks alone account for 24.4% of basic spending — almost £1 in every £4.
Housing, electricity, gas and other fuels account for another 10%, while communications, including internet, phone and postal services, make up 10.7%.
Transport represents 8.9%.
Philippa McKeown-Brown, Acting Director of Strategy and Emerging Markets at the Consumer Council, said:
“This latest Northern Ireland Household Expenditure Tracker looks back at what happened to consumers’ finances in the three-month period covering January to March this year.
“What’s concerning is that lowest-earning households are shown to spend over half (54%) of their household budget on the everyday essentials of food, housing, electricity, phone, internet, transport, gas and other fuels. The rising costs in these categories have reduced discretionary income, meaning that many households are ill-equipped to deal with further price increases.”
How lowest-earning households spend their money
The Consumer Council’s figures also provide a detailed breakdown of basic spending among Northern Ireland’s lowest-earning households.
The proportion spent across each category is:
Food and non-alcoholic beverages — 24.4%
Alcoholic beverages, tobacco and narcotics — 11.1%
Communication, including internet, phone and postal services — 10.7%
Housing, electricity, gas and other fuels — 10.0%
Transport — 8.9%
Other expenditure items, including mortgage costs — 6.5%
Clothing and footwear — 5.9%
Miscellaneous goods and services — 5.8%
Recreation and culture — 5.0%
Furniture and household equipment — 4.4%
Health — 4.3%
Hotels, cafés and restaurants — 3.0%
Education — 0.2%
Food and non-alcoholic drinks therefore represent by far the largest single category, accounting for almost £1 in every £4 of basic spending among the lowest-income households.
Around 192,000 households in lowest-income group
The figures potentially affect a significant section of Northern Ireland.
The Consumer Council defines the lowest-earning quartile as the bottom 25% of households by income.
Based on the 768,810 households recorded in the 2021 Census, the Consumer Council estimates that each income quartile represents approximately 192,202 Northern Ireland households.
Its definition of discretionary income is gross household income, minus taxes and basic spending.
Basic spending is calculated using a basket of goods and services including food, housing, clothing, health, transport and education. Certain recreational spending, restaurants and hotels, holidays and other leisure expenditure are excluded.
That distinction is important: the £53.17 figure is not simply money left after rent or energy bills. It represents the average amount remaining after the wider range of expenditure classified as basic household spending.
Where the money is going
The breakdown for Northern Ireland’s lowest-earning households shows food and non-alcoholic beverages taking the biggest share of basic spending at 24.4%.
Alcoholic beverages, tobacco and narcotics account for 11.1%, followed by communications at 10.7%, housing and household energy at 10%, and transport at 8.9%.
Other expenditure items, including mortgage costs, account for 6.5%; clothing and footwear 5.9%; miscellaneous goods and services 5.8%; recreation and culture 5%; furniture and household equipment 4.4%; health 4.3%; hotels, cafés and restaurants 3%; and education 0.2%.
While the latest quarterly movement offers some evidence that household finances have begun to improve, the five-year comparison shows the scale of the ground that has yet to be recovered.
For lower-income families in particular, having an average of around £53 left each week after taxes and basic expenditure means there is limited financial room to absorb an unexpected bill or another significant increase in everyday prices.
The Consumer Council is encouraging households struggling with costs to access its practical information and support covering food, home energy, communications, fuel and transport.
Consumers can visit: www.consumercouncil.org.uk
Those without internet access, or who need additional help checking energy tariffs, can contact the Consumer Council free on 0800 121 6022 or email contact@consumercouncil.org.uk.
