Northern Ireland's lowest-earning households are facing increasing financial strain, with their discretionary income averaging less than £53 per week after essential spending, according to the latest Household Expenditure Tracker from the Consumer Council.

The report, covering Quarter 4 2024 (October to December), reveals an 18% drop in spending power for these households since early 2021.

The Household Expenditure Tracker, which monitors income and expenditure across four income groups in Northern Ireland, found that households in the lowest income bracket (Quartile 1) are disproportionately affected by rising costs. Those in Quartile 2 are also under significant pressure, with their discretionary income still down by 29%. In contrast, higher-income households in Quartiles 3 and 4 have nearly recovered their pre-2021 spending power.

During Quarter 4 2024, the lowest-earning households allocated 48% of their total basic spending to food, rent, energy, and transport each week. Their income before tax was 6% lower than the UK average. While these households saw a slight 3% rise in discretionary income over the last quarter, from £51.45 to £52.80 per week, and a 1% rise in income after tax to £284.23, their overall financial vulnerability remains high. The report highlights a stark disparity in the ability of households to absorb unexpected bills or price rises, with the highest-earning households in Northern Ireland possessing, on average, over 13 times more discretionary income each week compared to the lowest earners.

Anne-Marie Murphy, Director of Strategy & Emerging Markets at the Consumer Council, commented on the findings: "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."

She added: "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."

The full Q4 2024 Northern Ireland Household Expenditure Tracker can be viewed on the Consumer Council's website.