Purchasing Power of Northern Ireland families remains lowest of UK Regions at £135 per week

However, purchasing power in Northern Ireland remains the lowest out of all UK regions, at £135 per week.

NI has historically exhibited one of the highest incidences of low-paid, low-productivity jobs in the UK, with the economy more heavily reliant on slower-growing industries such as agriculture and public administration.

Despite this, gross income growth in Northern Ireland was above the UK average in Q4, largely driven by public sector pay increases. Gross income averaged £905 per week in Q4, up by £9.87 per week compared to Q3.

Latest figures from Asda’s Regional Income Tracker reveal that Northern Ireland continues to be the region with the lowest spending power.

While discretionary income rose to £135 per week in Q4 2025 (compared to £129 per week y-o-y) Northern Ireland remains well below the UK average of £257, and £27 per week below the North East, which is the second worst performing region at £161 per week.

On a UK-wide level, the growth in the Income Tracker slowed sharply in December with the gap in spending power more apparent than ever.

Six in ten households now feel their weekly pay packet doesn’t stretch as far as it did a year ago.

The lowest quintile of families is suffering the most, with spending power falling by 5% y-o-y, resulting in a £73 shortfall, making it even harder to make ends meet.

Even middle-earning households, earning on average £33,000 per year and representing 40% of all UK households, are now also worse off after modest growth in November.

Spending power for households earning around £25,000 a year has since fallen by 7.1% compared with the same period last year, leaving them with just £12 a week to spend after essential costs.

The pessimistic outlook for households in 2026 reflects weakening earnings growth alongside a pause in disinflation, with annual inflation rising to 3.4% in December.

Housing and utilities remained the largest contributor at 4.9%, while food and non-alcoholic beverages rose to 4.5%, driven by bread and cereals, and transport costs, mainly airfares, pushed transport inflation to 4.0%.

Reacting to this month’s Income Tracker and its implications for Northern Ireland, Sam Miley, Head of Forecasting and Thought Leadership at Cebr, said: “The Income Tracker for Northern Ireland faced considerable headwinds over the course of 2025, following a period of stagnation in the latter half of 2024.

"Strong earnings growth, particularly from the public sector, which makes up a large proportion of Northern Irish employment, was accompanied by low inflation to bring discretionary incomes in Northern Ireland closer to pre-cost-of-living crisis peaks.

"However, in the second half of 2025, stronger inflationary pressures and weakening labour market conditions have prompted growth in the Income Tracker to stagnate.

“Northern Ireland remains the worst performing region on the Income Tracker in the UK, though it has seen more robust annual growth across Q4 2025 than many UK regions.

"Discretionary incomes are also still considerably below levels seen in 2021, before the cost-of-living crisis. Looking ahead, the outlook for the Income Tracker in Northern Ireland is uncertain, as an expected easing of price pressures competes with a weakened employment outlook.

"Low employment growth puts downward pressure on wages, which could limit discretionary income growth even as essential spending growth moderates.”

Michael McFadden, Senior Director for Asda in Northern Ireland added: "Income Tracker continues to provide a very honest insight into consumer spending here.

"The figures speak for themselves and as a retailer we know this means ongoing challenges for many local families who are concerned about their finances and the need to make them stretch as far as possible.

“We’ve introduced new measures to support our customers and will continue to do everything possible to offer maximum value to those who shop with us.”