The Northern Ireland Poverty and Income Inequality Report 2021-22 has been published.

The publication, entitled ‘Report on Poverty and Income Inequality in Northern Ireland (2021/22)’, was published today by the Department for Communities.

The Poverty and Income Inequality Report will be produced annually by the Department for Communities and provides statistics on income, income inequality and poverty.

This publication brings together information previously published in the NI Poverty Bulletin and the NI Households Below Average Income report. It provides estimates of the proportion and number of people, children, working-age adults and pensioners living in poverty, as well as other statistics related to household income and income inequality.

The publication uses data from the Family Resources Survey, which is based on an annual sample of approximately 2,000 households. Due to disruptions caused by Covid-19, only 700 households were surveyed in 2020/2021, with the number resuming to 1,700 in 2021/2022. Therefore, only figures relating to the entire population have been published for 2020 /21 years, and full reporting is renewed for 2021/22.

The main findings of the report are set out below. No year-to-year changes presented in the report are statistically significant. Care should be taken when interpreting annual fluctuations, as long-term trends often provide a clearer picture.

All population – poverty (before housing costs):

• According to estimates, in 2021/2022, 16% of people (approximately 300,000 people) lived in conditions of relative poverty; compared to 17% in 2020/21. The percentage of people living in absolute poverty in 2021/2022 was 13% (approximately 249,000 people); compared to 12% in 2020/21.

• Over the past decade, relative poverty has shown an overall downward trend, falling from a peak of 22% in 2014/15. Over the same period, absolute poverty fell by 10 percentage points from a peak of 23% in 2011/12.

Children – poverty (before housing costs):

• The long-term trend shows that children have a higher risk of living in poverty than other population groups (all individuals, working-age adults and pensioners).

• The percentage of children living in relative poverty in 2021/2022 was 18%; compared to 22% in 2019/20. Children living in absolute poverty fell from 17% to 15% over the same period.

Working-age adults – Poverty (before housing costs):

• In 2021/2022, the proportion of working-age adults in relative poverty was 14%; same as in 2019/20. The absolute poverty rate for working age adults has changed from 11% in 2019/20 to 12% in 2021/22.

• The risk of being in relative poverty is much higher for households where no one works (53%); compared to households where at least one adult works (8%). However, because there are more working households overall, it is estimated that more than half (53%) of all working-age adults living in poverty live in working households.

Pensioners – Poverty (after housing costs):

• In 2021/2022, the proportion of pensioners living in relative poverty was 16%; compared to 13% in 2019/20. During the same period, the absolute poverty of pensioners increased from 10% to 12%.

• Over the past decade, the proportion of pensioners in relative poverty has ranged from a high of 16% (in 2013/14 and 2021/22) to a low of 10% in 2018/19. Over the same period, absolute poverty has shown a downward trend from a peak of 17% in 2013/14.

Food poverty

• In 2021/2022, the majority of people lived in food insecure households (96%), and 4% (approximately 74,000 people) in households were considered food insecure.

Income (before housing costs):

• In 2021/22, the median household income in NI was £555 a week or £28,939 a year, up 1% on the previous year.

• In 2021/2022, households in the top 20% of the income distribution had a weekly income 3.4 times higher than households in the bottom 20% of incomes.

• The majority of household income in NI comes from wages (72%) and government support (16%). This varies significantly by income level, with households in the bottom income quintile receiving 35% of their income from wages and 54% from government support.