Household incomes down over 6%

Almost a quarter of all households were in arrears on at least one bill or loan last year, according to the annual survey on …

Almost a quarter of all households were in arrears on at least one bill or loan last year, according to the annual survey on income and living standards by the Central Statistics Office.

Gross and disposable household incomes fell in 2009 but poverty levels remained stable, the survey shows. Children and lone parent households are the groups most vulnerable to poverty.

The gross household income last year was €56,522, down 6.7 per cent. Disposable income was almost €46,000, down 6.3 per cent.

Falling overall incomes helped stabilised the numbers at risk of poverty. Some 14.1 per cent of the population were at risk of poverty last year, compared to 14.4 per cent in 2008. The decline is not considered statistically significant.

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The at risk of poverty rate for children was also unchanged, at 18.6 per cent, as was the worst affected group, lone parent households, where 35.5 per cent were at risk of poverty.

Just over 24 per cent of households were in arrears with mortgage payments, utility bills or other loans or bills; this compares to just 10 per cent in 2008. Among those at risk at poverty, the proportion of people in arrears rises to one-third, up from 20 per cent in 2008.

The CSO also measures deprivation, or the inability of people to afford basic goods. The survey shows the deprivation rate rose to 17.3 per cent last year, up from 13.8 per cent in 2008.

Compared to other members of the EU, Ireland’s poverty rate is slightly below average according to the CSO. In 2008, the at risk of poverty rate in the EU was 16.5 per cent; the equivalent rate for Ireland was 15.5 per cent. This ranked us 13th in the 27-member EU. Latvia recorded the highest rate while the Czech Republic had the lowest.

Paul Cullen

Paul Cullen

Paul Cullen is a former heath editor of The Irish Times.