New data: Workers in Northern Ireland are missing out on company benefits

Analysis of new data from the Department for Work and Pensions (DWP) has revealed a widening geographic inequality around company share schemes offered in Northern Ireland, compared to the rest of the UK.

Equity management platform Vestd has found that only 1% of households in Northern Ireland have investments in the form of company share schemes.

This is in comparison to 5% of households in London, and 7% in Inner London. Further inequality has been found in the North East and the West Midlands, also with only 1% of households being invested in a company share scheme.

In 2023, there were 121,900 SMEs reported in Northern Ireland, the fewest of all UK regions. Pictured is Ifty Nasir, founder and CEO of Vestd. Credit Vestd

Google searches for ‘employee share scheme’ in Northern Ireland have risen by 23% in the last year alone, however, this demand is yet to be matched by SMEs in the country according to the data.

In 2023, there were 121,900 SMEs reported in Northern Ireland, the fewest of all UK regions.

And while 79% of FTSE 100 listed businesses have a scheme in place, less than 1% of UK SMEs currently offer one; meaning more work needs to be done to widen access to all more equally.

The 2024 data published by the DWP also shows that the gender disparity, in terms of access to share schemes, has doubled since last year.

Vestd’s analysis of the 2023 data showed that men were twice as likely than women to have access to a scheme. This gender equity inequality has now increased, so men are now four times as likely to receive a company share scheme benefit.

Commenting on the data, Ifty Nasir, founder and CEO of Vestd, said: “With the enormous power that sharing equity can have, it’s concerning to see a rise in ‘equity inequality’.

“Employee share schemes provide great opportunities for employers in Northern Ireland to create life-changing wealth for the people that power their growth - they also help to accelerate growth and increase productivity.

“For every 100,000 companies that have a scheme in place, we can add £1 billion to the UK economy - so we all see the benefits of more widespread adoption.”