Economic hardship higher in Northern Ireland than UK overall, reveals report

Economic hardship is more prevalent in Northern Ireland than the rest of the UK, according to a new report from Carnegie UK based on a survey of 919 people in NI and 7106 UK-wide. 

Carnegie’s paper shows that people in Northern Ireland remain less likely than the UK average to be able to afford things like unexpected bills, socialising outside of their home once a month, and a week’s annual holiday away from home. The research also shows that while trust in politicians and political institutions has increased in Northern Ireland, it remains lower than the UK average.

Carnegie UK is a public policy foundation based in Scotland. Their chief executive has urged policymakers in Northern Ireland to focus on tackling inequalities and systematically improving people’s lives.  Their report demands bolder and more joined-up action from all levels of government to improve the wellbeing of the people.

Sarah Davidson, chief executive of Carnegie UK, said: “Our research shows that a lot of people in Northern Ireland face lives that are too difficult. While the pattern is similar to the rest of the UK we see greater hardship in Northern Ireland, especially among people on lower incomes and among disabled people.

“The restoration of the Executive in 2024 and last year’s General Election seem to have increased trust in politics and government in Northern Ireland, albeit from a low base. However, it is a big concern that our Index for Northern Ireland still shows that democratic wellbeing is substantially lower than the UK average.

“All tiers of government that have an influence over public policy in Northern Ireland must work together to improve the lives of local people. The launch of the Doing What Matters Most framework alongside the Executive’s Programme for Government suggested an appetite to take the hard decisions required. However our data underlines  the case for policymakers to take bolder, longer-term action to tackle inequalities and make sure the economy delivers for everyone.” 

Carnegie’s Life in the UK Index (based on a 26-question survey of 7106 people including 919 in Northern Ireland) looks at the social, economic, environmental and democratic aspects of life in the UK. The headline index score for Northern Ireland – designed to measure the collective wellbeing of people in the jurisdiction – is 62 out of a possible 100, the same as the UK average. Now in its third year, the index shows no improvement to wellbeing in Northern Ireland between 2023 and 2025 in common with the rest of the UK.

Low trust in the Executive has dropped from 66% in 2023 to 46% in 2025, with similar changes recorded for trust in Assembly members. However most people in Northern Ireland feel they can neither influence decisions affecting their local area or the UK. 

Ann Watt, director of Pivotal – Northern Ireland’s independent public policy think tank, said: “This annual report from Carnegie UK gives important insights into life in Northern Ireland across four areas – social, economic, environmental and democratic. Most concerning is the finding that a higher proportion of households in NI struggle to cover basic costs than in the rest of the UK, with those with disabilities being more badly affected. 

“There has been an increase in trust in the NI Executive and Assembly over the last few years, probably reflecting the fact that the institutions have been back up and running in recent times. Nevertheless trust in government remains low here, and it is an ongoing challenge for Northern Ireland’s politicians to demonstrate leadership that benefits people day to day. The restored Executive and new Programme for Government are welcome, but they must lead to improvements that the public can see and feel.”