Northern Ireland could 'face extreme poverty surge'

Niesr has used economic modelling to estimate how rising prices will have an impact on different parts of the UK

Northern Ireland could be facing a surge in the number of households in extreme poverty due to rising inflation, the National Institute of Economic and Social Research (NIESR) suggests.

It has used economic modelling to estimate how rising prices will have an impact on different parts of the UK.

It suggests all regions will see extreme poverty increase by more than 10% in the coming year.

In NI the increase is estimated at 67%.

This would bring the total number of destitute households to about 25,000.

NIESR's economic model uses data such as employment rates and wages to estimate the impact of different scenarios on the UK regions.

• Rising living costs 'crippling people in NI'

Its latest regional outlook said the combined effect of higher prices and higher National Insurance contributions, which begin in April, will push many households into destitution.

"Our headline projection is a 30% rise in destitution because of the differential impact of inflation upon the poor; however, there are large regional variations, with Northern Ireland projected to have more than twice the average increase," it said.

It added that poorer households are facing a "double jeopardy" from the current bout of inflation.

It said: "Prices are not only rising mostly in areas where low-income households spend a disproportionately high amount of their income (fuel and food), but that these are also essential items.

"As a result, such households cannot absorb these rising prices by spending less on them without suffering significant social and or health-related consequences."