Inflation sees almost 900,000 people experience ‘enforced deprivation’

Almost 900,000 people in Ireland experienced some form of “enforced deprivation” last year as surging energy and food costs eroded living standards, according to the Central Statistics Office (CSO).

The agency’s latest Survey of Income and Living Conditions also indicated that while the nominal income of most households rose last year, incomes in real terms or when adjusted for inflation fell by nearly 2 per cent.

The report found that the proportion of people deprived of certain basic goods and services rose from 16.6 per cent in 2022 to 17.3 per cent in 2023. The figure equates to approximately 882,000 people.

“Enforced deprivation” is where a household experiences two or more of 11 deprivation items, such as “unable to afford to keep the home adequately warm” or “unable to afford a roast once a week”.

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The groups most at risk were identified as those who were unable to work due to long-standing health problems (44.7 per cent); those living in single-adult households with children under 18 (41.4 per cent); those who were unemployed (37.8 per cent) and those living in rented or rent-free accommodation (36.5 per cent).

The percentage of people who went without heating at some time during the last 12 months through lack of money went rose from 8.2 per cent in 2022 to 10.8 per cent in 2023.

The survey indicated that the median (or middle point) nominal household disposable income was €55,149 in 2023, an increase of €3,005 or 5.8 per cent on the previous year.

However when this was adjusted for inflation, the real median household income fell by 1.9 per cent or €958 on the previous year to €50,162, reflecting the impact of higher prices.

Households composed of one adult aged 65 or over had the lowest median household disposable income at €19,753, compared with €79,167 for households composed of three or more adults and no children.

The survey also noted that home ownership was highly correlated with higher household income.

The nominal median household disposable income for owner-occupied households was €63,036, an increase of €2,083 (+3.4 per cent) from the previous year, while the corresponding figure for rented and rent-free households increased by 7.6 per cent to €43,433.

The survey found that those classified as being “at risk of poverty” or earning less than 60 per cent of the median income fell last year from 12.5 per cent to 10.6 per cent as a result of the Government’s cost-of-living measures.

If the measures are excluded from income, the at-risk-of-poverty rate would have been 13 per cent, higher than in 2022, the CSO said.

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