Northern Ireland suffers from persistently lower Gross Disposable Household Income (GDHI) compared to its counterparts. Office for National Statistics (ONS) data reveals a concerning decline in GDHI, particularly in Belfast City Council, indicating an imminent drop into the lowest 15% bracket. This calls for a critical evaluation of energy policies, urging a strategic reinforcement to address the escalating economic challenges.
This publication unwraps the complicated terms of UK disposable incomes, spotlighting Northern Ireland's unique economic challenges. With six out of eleven Northern Irish Councils ranking in the bottom 22%, the stark 19% disparity in disposable income compared to the UK average demands urgent attention. The data underscores a critical need for a strategic reassessment of energy policies to effectively address the escalating economic strain and pave the way for a more equitable future.
Figure 1: Relative GDHI per head as indices, UK = 100, 12 UK regions, NUTS 1.
4. It is also clear that there has been a huge GDHI improvement in London, which is driving the overall income equality gap. This should come as no surprise given our other report on inequality worldwide.3 Note also, in contrast to NI, GDHI in Scotland has improve dconsiderably since 1997.
5. Three cities, and therefore about 35% of the NI population, have lower GDHI per head than the 8 other Councils in NI.
Figure 2: Relative GDHI per head as indices (UK = 100), 11 NI regions (NUTS 3, Councilareas
6. The most startling observation is the rapid decline in Belfast, which now has the third lowest GDHI per head in NI: a notable decline since 1997 when it had the highest GDHI per head. On this basis, there would be justifiable grounds for policies that target these three areas, and potentially those cities, in particular.
7. The decline in GDHI per head in these three areas, (Belfast, Derry and Newry) can becompared to GDHI per head elsewhere in the UK. Figure 3 below presents the 30 worstregions for GDHI per head, of the 179 areas reported by ONS.
Figure 3: Relative GDHI per head as indices (UK = 100), 30 worst UK regions (NUTS 3)
8. On this basis, the decline in Belfast appears greater than any other UK region.
9. With disposable incomes between 19% (NI average) and 27% (Derry City and Strabane) lower than the UK average, it is easy to understand that energy policy, and implementation of that policy, should be significantly stronger in comparison.
10. In our view therefore, this evidence justifies a significant re-think by policy makers (eg Department for the Economy), policy implementers (eg Utility Regulator), and other
stakeholders (eg energy retailers such as Power NI and SSE Airtricity in particular) in line with the respective duties of those organisations.
11. The Utility Regulator (UR) should be particularly motived (and justified) to tackle this, for example see UR’s duty as specified at paragraph 12(3) of the Energy (Northern Ireland) Order 2003. Similarly, energy retailers should be under increased scrutiny to comply with existing obligations, for example see SSE’s licence conditions as specified at condition 31 (electricity supply licence) and condition 2.11 (gas supply licence).
12. On these grounds, two related questions arise:
a. Has the UR recently received from each supplier an up-to-date Code of Practice?
b. If so, can each supplier, within a reasonable timeframe, provide the UR with a report outlining its actions over the previous 5 years, alongside a copy of a register of its customers that fall under the provisions of the relevant licence conditions?
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