“Money is on my mind everyday”: Nearly half of Northern Irish consumers cutting back on essentials to make ends meet

Nearly half of Northern Irish consumers are cutting back on essentials to make ends meet, new Which? research finds, as the consumer champion calls on essential businesses to do more to support people through the cost of living crisis.

More than six in ten (63%) said their household had made at least one adjustment to cover essential spending in the last month – up from nearly half (46%) in 2021 and nearly four in 10 (39%) in 2020.

Consumers in Northern Ireland were more likely than elsewhere in the UK to report that their household had made an adjustment – such as cutting back, dipping into savings, borrowing from friends and family, taking out credit or selling belongings. The biggest difference was in cutting back on essentials – 44 per cent in Northern Ireland compared to 39 per cent in Scotland and 38 per cent in Wales.

Only a quarter of Northern Irish consumers (24%) were cutting back on essentials in 2021 and one in five (20%) in 2020.

Which?’s research also found that some household types are being hit harder than others by the cost of living crisis. Nearly eight in 10 (77%) parents in Northern Ireland surveyed had to make at least one of these adjustments, compared to half (49%) of pensioners.

A 37-year-old woman said: “I worry a lot about money – being able to afford a social life, electricity and gas. It’s a depressing time. Money is on my mind everyday”.

A 53-year-old man said: “I lose sleep worrying about the cost increases of absolutely everything at the moment. I try to think about what we can cut out or sell in order to bring in more money so my children won’t notice we are struggling”.

More than nine in 10 consumers said they were worried about energy prices (92%), while concerns around food and housing costs have increased sharply compared to the previous year.

The proportion of people worried about food prices increased by 11 percentage points to almost nine in 10 (89%) in December 2022, compared to eight in 10 (79%) in 2021 and six in 10 (62%) in 2020.

Concern about fuel prices was already very high in Northern Ireland last year (at 84%) but increased by four percentage points to 88 per cent this year. This is a significantly higher proportion than in any of the other nations of the UK. Consumers in Northern Ireland also expressed more intense feelings of worry, with over half (54%) saying they are ‘very’ worried about fuel prices, compared to four in 10 (40%) in each of the other nations.

Which?’s research shows how justified these concerns about price rises are. The consumer champion estimates that if Northern Irish consumers tried to maintain the same spending habits they would need to spend an additional £42.15 per week – or about £2,190 a year – on food, energy and fuel in December 2022 compared with December 2021. That would mean 35 per cent of household expenditure would now be spent on just these essential goods. This is an increase of 5 percentage points compared to the previous year.

One in six (18%) consumers in Northern Ireland said their household is finding it quite or very difficult to manage financially. Families with children are more likely to be struggling – only a third (33%) of working-age parents surveyed in Northern Ireland said that they are living comfortably or doing alright, compared to half (49%) of non-parents of working age and two-thirds (63%) of pensioners.

These financial pressures are causing widespread emotional harm among Northern Irish consumers. Nearly half (49%) of consumers in Northern Ireland said concerns around the cost of living have left them feeling anxious and a quarter (25%) said they were struggling to sleep due to worries about the cost of living.

Financial pressures are also leading consumers in Northern Ireland to engage in behaviours that could be potentially harmful to their physical health. Three quarters (76%) of consumers in Northern Ireland said they had been putting the heating on less due to energy price rises, compared to just under half (48%) last year.

Nearly a fifth (18%) had been eating fewer cooked meals to save on energy costs, while more than one in ten (13%) had skipped meals due to rising food costs, 8 per cent had prioritised providing meals for other family members and 3 per cent had used a food bank. Parents were much more likely to have prioritised meals for other family members – with two in 10 (21%) of those surveyed doing so.

One 59-year-old woman said: “I am unable to buy enough oil to keep my home heated and feed myself. I use as little electricity as possible, for instance, I don’t use my lights, only boil the kettle with enough water for one cup. When it gets too cold and dark I go to bed, it’s warmer.”

A 71-year-old man: “I am cutting back on everything I can, which means sometimes I have to skip meals or stay in bed to save on heating”.

With the UK heading into recession, mortgages and rent costs rising and the energy price guarantee becoming less generous from April, Northern Irish consumers will only face further financial pressures in 2023.

Which? recently launched a campaign calling on essential businesses – energy firms, broadband providers and supermarkets – to do more to help consumers struggling to make ends meet. For example, supermarkets must ensure that budget line items are widely available, make pricing and offers more transparent and provide targeted promotions to support people who are struggling most with access to affordable food.

Rocio Concha, Which? Director of Policy and Advocacy, said: 

“It’s hugely concerning that people in Northern Ireland are losing sleep, skipping meals and sitting in the cold due to high prices.

“As the cost of living crisis puts huge pressure on household finances, we are calling on businesses in essential sectors like food, energy and broadband providers to do more to help customers get a good deal and avoid unnecessary or unfair costs and charges.”

ENDS

Notes to editors

Which? cost of living campaign

The consumer champion has launched a campaign calling on businesses in essential sectors – supermarkets, telecoms and energy – to do more to help their customers through the cost of living crisis. More information on the campaign is available here.

Research

Yonder, on behalf of Which? conducted a survey of more than 1,000 consumers in Northern Ireland from 25th November – 6th December 2022, with quotas and response weighting used to obtain a nationally representative sample for Northern Ireland according to its known adult age and gender profiles (based on ONS population estimates for 2021).

To estimate the impact of price rises on household spending, Which? analysed the 2019/2020 (pre-pandemic) wave of the ONS’ Living Cost and Food Survey to calculate the proportion spent by households in Northern Ireland on different expenditure categories (e.g. food, fuel and energy). Price indices from the ONS are used to calculate the price increases for specific goods and services. For a full methodology see: https://consumerinsight.which.co.uk/articles/lived-inflation-methodology

Figure 1: More than six in ten consumers in Northern Ireland said their household had made at least one adjustment to cover essential spending in the last month

Source: Yonder, on behalf of Which?, surveyed 1,007 consumers in Northern Ireland from 25th November-6th December 2022 – data are weighted to be nationally representative of the adult population of Northern Ireland by age and gender (effective base 882).

Figure 2: Concerns about price rises continue to grow

Source: Yonder, on behalf of Which?, surveyed at least 1,000 consumers in Northern Ireland in November-December each year – data are weighted to be nationally representative of the adult population of Northern Ireland. Figures for sample subgroups (renters and mortgage holders) are unweighted.

Figure 3: Food, energy and fuels make up an increasing share of household expenditure

Source: Calculated using spending data taken from ONS Living Costs and Food Survey 2019/2020 wave (i.e. pre-pandemic wave) and inflation figures from the ONS. December 2021 and December 2022 are estimated expenditure proportions.

Figure 4: Parents surveyed were more likely to say they are struggling financially

Source: Yonder, on behalf of Which?, surveyed 1,007 consumers in Northern Ireland from 25th November-6th December 2022 – data are weighted to be nationally representative of the adult population of Northern Ireland by age and gender (effective base 882). Base sizes for household types are as follows: working age with kids (377), working age no kids (488), pensioners (131).

Figure 5: A quarter of consumers in Northern Ireland have had trouble sleeping due to thoughts about the rising cost of living

Source: Yonder, on behalf of Which?, surveyed 1,007 consumers in Northern Ireland from 25th November-6th December 2022 – data are weighted to be nationally representative of the adult population of Northern Ireland by age and gender (effective base 882).

Figure 6: Consumers in Northern Ireland are engaging in cost saving behaviours, which in some cases could be harmful to their physical health

Source: Yonder, on behalf of Which? surveyed 1,007 consumers in Northern Ireland from 25th November-6th December 2022 – data are weighted to be nationally representative of the adult population of Northern Ireland by age and gender (effective base 882).

About Which?

Which? is the UK’s consumer champion, here to make life simpler, fairer and safer for everyone. Our research gets to the heart of consumer issues, our advice is impartial, and our rigorous product tests lead to expert recommendations. We’re the independent consumer voice that influences politicians and lawmakers, investigates, holds businesses to account and makes change happen. As an organisation we’re not for profit and all for making consumers more powerful.

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