Gap between rich and poor widens

The gap between rich and poor in Irish society has widened significantly, according to a Central Statistics Office survey of …

The gap between rich and poor in Irish society has widened significantly, according to a Central Statistics Office survey of household incomes.

The report, published yesterday, found that the average disposable income of households grossing in excess of €1,339.22 a week increased by over 61 per cent over the five-year period 1994/1995-1999/2000.

This compared to an increase of just 37 per cent for households grossing less than €214.46.

Moreover, the report cites major differences in spending trends between rich and poor families.

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Some 29 per cent of spending in low-income households went on food, compared to only 16 per cent in high-income households.

In contrast, spending on transport, services and miscellaneous expenses accounted for up to half of total expenditure in high-income households, compared to just 30 per cent in low-income ones.

The figures are derived from a CSO Household Budget Survey conducted between June 1999 and July 2000 in 7,644 households.

Compared to a similar survey five years earlier, they record a widening gap between high-income and low-income families.

In particular, the ratio between the average weekly disposable income of households in the lowest income bracket (€106.23) against that in the highest bracket (€1,428.71) was approximately 13:1 in 1999/2000. In 1994/1995, the corresponding ratio was 11:1.

Highlighting a general improvement in the economy, the survey estimated average weekly expenditure in 1999/2000 at €577.72, a 46 per cent increase on five years earlier.

Urban households spent more per week (€612.53) than rural, non-farm households (€510.18). Geographically, Dublin households spent most of all (€684.06), while households in the south-east spent least (€488.62).

The increase in spending is matched by an increase in average gross weekly household income - up by 53 per cent on five years earlier to €666.72. Much of the increase was accounted for by total direct income (mainly wages), which increased by 61 per cent to €585.41. In contrast, State transfer payments rose by just 11 per cent to €81.32.

The survey also found that the concentration of pensioners in low-income households increased from 30 per cent to 38 per cent.

In another indicator of social change, households with a mortgage spent over 2½ times more in 1999/2000 than those renting from local authorities.

As for what people spent their money on, the survey showed 96 per cent of families had a television set in 1999/2000, compared to 88 per cent five years earlier and 61 per cent in 1987.

Almost 90 per cent of households in the most recent survey had a fixed telephone compared to 76 per cent in 1994/95; 85 per cent had a video player compared to 61 per cent; and 29 per cent had a home computer compared to 16 per cent.

The 1999/2000 survey was the first to record a figure for mobile phone ownership, estimating it at 44 per cent of households.

Joe Humphreys

Joe Humphreys

Joe Humphreys is an Assistant News Editor at The Irish Times and writer of the Unthinkable philosophy column