HOUSEHOLDS in Northern Ireland are £23 a week better off than they were at the start of the pandemic, new data shows.
Asda’s latest income tracker says families now have £143 a week of spare income at their disposal, once all priority bills have been paid.
The average family disposable income in Northern Ireland soared by 18.7 per cent year-on-year in March - the fastest growth of any UK region and the highest in 11 years.
But despite the hike, Northern Ireland still remains by far the lowest-performing region in terms of spending power, and is more than £100 below the UK average of £246 of spare cash each week.
Sam Miley, an economist at CEBR, said: “Households in Northern Ireland have benefitted more than most in the past year as the unique circumstances provided by the pandemic, and associated policy measures have boosted discretionary incomes.
“The uplift to Universal Credit has been a key factor, particularly for those at the lower end of the income scale, while the combination of the region’s relatively low unemployment rate and the furlough scheme have provided further sources of resilience.
“But despite this general positivity, the headline figure does mask some diverging fortunes, with a not insignificant portion of households having struggled amidst pandemic-induced income losses.”
Northern Ireland households tend to see a larger proportion of their income stemming from social security benefits. Many families have gained from the uplift in Universal Credit, and this will continue to pay dividend given the recent extension to the benefit payment.
The region’s reliance on the public sector, which amounts to just over a quarter of the total workforce, is a further factor impacting on spending power growth, particularly when coupled with the benefit of stronger public sector pay growth.
Across the UK as a whole, Asda’s Income Tracker highlights how a rise in spending power coincides with a sense of increased optimism, with 40 per cent of consumers saying they now feel more positive about the future, compared to just 4 per cent last November as the second wave and further lockdown loomed.
Asda NI's senior corporate affairs manager Joe McDonald said: “Limited spending over the lockdown, together with this £28 a week rise in discretionary income, is very positive news for families here and will hopefully help to drive a bounce back as restrictions ease in the weeks ahead and the move to recovery gets under way.
“But is clear that the financial pressures and implications of reduced working hours and job uncertainty are still being felt by many families.”
