Business

£41.73 - that’s all Northern Ireland’s lowest-earning households have each week after paying essential bills

NI Consumer Council’s latest Household Expenditure Tracker reveals where our money goes

More people eating out meant less were cooking at home - and smaller baskets in the supermarkets
The lowest-earning families in Northern Ireland are spending just £5.22 a week on eating out, according to the NI Consumer Council
By Gary McDonald

The north’s lowest-earning households are left with a meagre £41.73 a week on average after paying all their essential bills.

That’s 7% less than other UK regions, and is a fall of more than 35% since the first quarter of 2021.

And more than half of people’s pay packets (52%) go on food, rent/mortgage, energy, and transport before then even think of luxury items.

That’s according to the NI Consumer Council’s latest Household Expenditure Tracker, covering the January to March quarter.

It says the ability of households in Northern Ireland to absorb unexpected bills or price rises differs sharply depending on household income.

For while the lowest earning households must get by on less than £42 a week, the highest earning households have on average almost 16 times more discretionary income.

The north's lowest-earning households are left with a meagre £41.73 a week on average after paying all their essential bills
Graph showing where households in the north are spending their money each week (Gary)

It said the lowest-earning families bring in £268.63 a week (up from £263.46 the previous quarter), but their total spending is £226.90.

Of this, 22.1% (or £50.15) goes on food and non-alcoholic beverages, 17.2% (or £39.03) on housing, water, electricity, gas and other fuels; and 12.2% (or £27.68) on transport.

Other spending includes £14.52 on clothing, £13.39 on internet/communication, £12.48 on booze and ciggies, and just £5.22 on eating out.

Anne-Marie Murphy, director of strategy & emerging markets at the Consumer Council, said: “The lowest earning households have seen a small rise in discretionary income over the last quarter - up from £36.65 to £41.73 - but this is a decrease of over a third since the beginning of the cost of living crisis.

The north's lowest-earning households are left with a meagre £41.73 a week on average after paying all their essential bills
Income after tax in Northern Ireland compared to the rest of the UK (Gary)

“Despite a small decrease in energy costs, food continues to form a disproportionate share of the lowest earning households’ spending, compared to higher earning households. Food costs represent 22% of their weekly essential spending compared to 16% for the highest earning households.

“This expanded Household Expenditure Tracker considers all Northern Ireland households and shows that half of them have on average less than £93 a week after all essential bills are paid.

“It is concerning how little money many families have left to cover unexpected bills or price rises.”

She added: “This latest research also shows that nearly two in five (39%) of local consumers feel that their personal finances have had a negative impact on their mental health.

“To help consumers, we offer 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.”