Northern Ireland households remain the worst off in the UK for discretionary income, with average spending power at just £137 per week, according to Asda's quarterly Income Tracker. The brief relief seen earlier this year has faded as higher oil prices once again bite into budgets.

The Income Tracker for Northern Ireland rose by 4.3% year-on-year in Q3 2026, markedly below the 6.5% annual rise recorded in Q2. Discretionary income edged up by only 33p per week over the quarter and stays the lowest of any UK nation or region at £137.

Earlier in the year, falling oil prices had eased pressure on family finances, helping deliver the strongest annual growth since Q1 2025. That trend has reversed sharply. Liquid fuel prices surged by 104.9% in the year to September, a significant hit in Northern Ireland where most homes rely on heating oil and are outside the protection of the Ofgem energy price cap.

Even so, Northern Ireland's gross income grew by 3.8% year-on-year in Q3, close to the UK-wide 3.9%. It was also the only part of the UK to see an annual increase in payrolled employment to September, up 0.9%.

Despite these positives, spending power remains weakest in Northern Ireland. At £137 per week in Q3, discretionary income was £34.15 below the North East of England, the next poorest region, and around £125 under the UK average of £262. While households were £5.59 a week better off than a year ago, the slowdown in annual growth from 6.5% in Q2 to 4.3% in Q3 underscores renewed financial strain. Across the UK, household budgets are also feeling the squeeze from rising fuel and energy costs. Income Tracker growth eased for a third consecutive month in September to 2.4% year-on-year, the softest pace since March 2026. Essential spending climbed by 4.3% against gross income growth of 3.8%.

UK inflation picked up from 3.1% in August to 3.5% in September, driven chiefly by transport. Motor fuel prices were 29.8% higher than a year earlier, while housing and utilities inflation rose to 5.3%.

Lower-income households are under the greatest pressure. For the poorest 20% of households, essential costs now exceed gross income, leaving a weekly deficit of £76. Those in the second-lowest income band have just £11 a week left after essentials, and middle-income households are only 58p a week better off than a year earlier.

Sam Miley, Head of Forecasting and Thought Leadership at Cebr, said: "Pressure on household finances looks set to persist. A higher energy price cap and dearer fuel will keep essential costs rising at an elevated rate, while cautious hiring by employers limits any offsetting boost to incomes. Rising core inflation also suggests that higher energy costs are increasingly feeding through to prices across the wider economy."

Rachel Eyre, Chief Customer and Digital Officer at Asda, said: "Every pound saved on the weekly shop matters when budgets are stretched. With household bills continuing to put pressure on family finances and customers already planning ahead for Christmas, we're focused on helping them make their money go further. That's why we've cut the price of 1,000 products and are holding those prices until after Christmas, helping customers get great value every time they shop with us."

Asda says it remains focused on helping families manage costs and continues to be recognised by Which? as the UK's lowest-priced traditional supermarket.