This report provides a comprehensive overview of poverty in Northern Ireland in 2025, highlighting where further investigation and policy action are needed. Despite some improvements in reducing overall poverty over the past 15 years, progress has largely stalled, particularly in addressing child poverty. The report adopts the relative poverty measure after housing costs to analyze the situation and relies on three-year financial averages to account for small sample sizes in Northern Ireland household surveys.
Household income plays a critical role in shaping life chances, and persistent low pay combined with inadequate social security continues to drive high levels of poverty and food insecurity. By 2024, 1 in 5 households in Northern Ireland experienced food insecurity, including 130,000 children. The impacts of poverty disproportionately affect children, carers, women, disabled individuals, and people from global majority backgrounds, with additional challenges for those in the private rental sector. Income inequality has resulted in poorer health outcomes, educational disadvantages, and long-term effects on life chances. Comparisons with Scotland show that deliberate policy interventions, such as the Scottish Child Payment, can meaningfully reduce child poverty.
Overall poverty in Northern Ireland currently affects around 330,000 people (17% of the population), with 200,000 in deep poverty and 120,000 in very deep poverty. Persistent poverty affects 1 in 10 residents, and child poverty remains particularly concerning, rising to 14% after housing costs. Disabled individuals face significantly higher poverty rates (37% vs. 13% for non-disabled adults), and carers, especially those providing over 35 hours of care per week, are at heightened risk.
In-work poverty is a major driver of hardship, with employment not guaranteeing financial security due to low wages, insecure contracts, and insufficient hours. Priority sectors experiencing high levels of in-work poverty include hospitality, health and social care, retail, and the arts. For example, 83% of hospitality workers earn low pay, with nearly half of young workers affected.
The report models three policy scenarios to address poverty: introducing a Northern Ireland Child Payment, raising wages to the recommended living wage, and implementing both measures together. Results indicate that a targeted child payment would have the most immediate impact, potentially reducing child poverty to 20% and benefiting around 150,000 children in 100,000 households. Raising wages alone would have a more modest effect.
The report concludes with clear recommendations for the Executive, including setting poverty reduction targets, urgently implementing a child payment, and addressing structural challenges in labor and housing markets. Improving job quality, raising wages, and strengthening social security are critical for long-term solutions, while a targeted child payment offers an immediate measure to protect children and support low-income families as broader reforms take effect.
