New figures show the average family in Northern Ireland now has £93.50 in disposable income per month.
Asda's latest Income Tracker report from June 2022 shows that the average family here has this amount at its disposal per month once all taxes, essential items, and bills have been paid.
It's £45 per week less than the same period a year ago, and £110 below the UK average of £204 in discretionary spending power.
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Northern Ireland is the UK's worst performing region with the spending power of families here dropping below £100 for the first time since 2017.
These record falls in household spending power are being driven by income growth falling well short of spiralling inflation. Northern Ireland is also disproportionately affected by having a high share of public sector workers, where wage growth has lagged in recent months, as well as a larger share of social security claimants, meaning the withdrawal of the Universal Credit uplift has had a significant impact.
The Asda Income Tracker measures the amount the average household has left over each month to spend on discretionary purchases such as leisure and recreation goods and services.
Cllr Nichola Bradley said a lack of disposable income is something they're seeing daily from service users of the Community Food Bank in North Belfast. For the most part, she said, local people don't have the luxury of having any disposable income and are struggling to make ends meet.
She said: "Families on low incomes are no longer trying to get from week to week but from day to day. There are parents going without meals just to insure their children have enough to eat.
"The cost off living has got completely out of control. Energy, food and petrol prices are at an all time high. At this time of year people also have the additional financial burden of school uniforms and supplies.
"People are having to go to food banks just to make ends meet. These organisations do fantastic work and are to be commended but they shouldn’t be necessary. Autumn and winter are fast approaching and some people simply won't be able to heat their homes.
"The government needs to step up and tackle this problem head on. The Department for Communities and local councils have done what they can to try and lessen the burden on families but more needs to be done.
"Westminister needs to get its act together and we need a functioning Executive. Gone are the days when families budgeted to give their children treats from time to time. Now they are just hoping that they can keep enough food in the cupboard and the lights on."
Information Manager at Advice NI, Matt Cole, said they've seen an increase in the number of calls to their helpline in recent months as the cost of living crisis deepens.
He said anyone struggling financially should make sure they're getting all benefits they're entitled to, and contact them if they need any help managing debt.
Matt said: "The biggest indicator of how people are struggling to make ends meet is the number of people contacting us about the cost of living payments.
"We're getting a couple hundred calls some days relating to that, so that tells you it's something people are concerned about, to make sure that's something they're able to get.
"The cost of living payment is fairly limited, it's available to people on means tested benefits, disability benefits, and pensioners. There is supposed to be money coming to everybody to help with the cost of living, but we don't know when that's going to happen because there's no Executive."
Matt said Advice NI are able to offer advice relating to money and debt. He said as we go deeper into the cost of living crisis with more price hikes coming in future months, especially relating to energy bills, people need to make sure they're getting all the help they can.
"People can get in touch with us to make sure they're getting all benefits they're entitled to," he added.
"If you can't meet a bill, talk to your supplier about it. Don't get into the situation where you put it off.
"It's building that financial capability so people who may not be in financial crisis now, can get on top of their finances so they can be covered when prices go up again later in the year. It's about trying to be ahead of the game."
Asda's Income Tracker report is independently compiled by Cebr. Commenting on the latest report and the longer-term outlook for Northern Ireland, Sam Miley, Senior Economist at Cebr said: “The latest Income Tracker report shows stark results for Northern Ireland, with the average household in the country witnessing discretionary income of just £93.50 per week in Q2.
"The impact of the cost-of-living crisis is clear, with rising prices eating into incomes and reducing families’ ability to spend. Indeed, Q2 marked the first time in five years that Northern Irish households have had less than £100 per week to spend on non-essential items.
"The worst could be yet to come, as an even more severe inflationary spike, driven by food and transport prices, is forecasted for Q4. This would put further downward pressure on spending power.”
For free advice on money and debt you can contact Advice NI on 08009154604.
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