Nearly half of Northern Irish consumers are cutting back on essentials to make ends meet, new figures reveal.
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.
The research was carried out by consumer champion Which? and comes amid calls on essential businesses to do more to support people through the cost of living crisis.
Read more: Belfast cost of living support group highlights struggles across the city
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% in Northern Ireland compared to 39% in Scotland and 38% 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.
One local 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”.
Elsewhere, a 53-year-old NI 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.
Over half (54%) of consumers in Northern Ireland say 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% of household expenditure would now be spent on just these essential goods. This is an increase of 5% 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% had prioritised providing meals for other family members and 3% 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.
With the UK heading into recession, mortgages and rent costs rising and the energy price guarantee becoming less generous from April, Which? has warned that Northern Irish consumers will only face further financial pressures in 2023.
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.”
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