The average household spends more than £455 (€578) a week, up more than 46 per cent on five years ago, according to the latest survey data from the Central Statistics Office (CSO). The household budget survey found that the gap between high income and low income households had widened, with more pensioners than families with children among the poorest in the State.
The five-yearly survey also found that households now spend proportionately less on food, fuel/lighting and clothing/footwear than five years ago but more on household durable goods, transport and services.
According to CSO director Mr Gerry O'Hanlon, increasing employment over recent years has come through very clearly in the figures. Pensioners, who rely on fixed incomes and have not gained from better employment prospects, now make up the bulk of the poorest households. Almost 38 per cent of pensioners are now in the poorest 20 per cent of households, from 30 per cent five years ago.
On average, households spend 87.5 per cent more on durable goods than five years ago and 67 per cent more on transport, as household income went up by 53 per cent to £525 per week. The wealthiest 10 per cent of households had a gross weekly income of £1,054, while the least well-off had an income of only £104. On annual basis, all 120,000 households in the top 10 per cent earn more than £52,000 and the average is £75,000, according to Mr O'Hanlon. However, he pointed out that it was important to take household size into account. The poorest households were those with fewest people.
Most households spend far more on household durable goods, or what used to be called luxury goods, such as microwaves, home computers and videos and a smaller proportion on food. Over the past five years, the proportion of income spent on food fell from 22.7 per cent to 20.4 per cent, while the proportion spent on services increased from 24.4 per cent to 25.7 per cent. Low income households spent more on food, at 29 per cent, compared with 16 per cent in the highest income households. Spending on transport and services made up about half of all spending for the highest income households, compared with 30 per cent for those on the lowest incomes.
There were also differences between rural and urban households. Urban households spent £483 a week while rural non-farm households spent the least, with a weekly average of £402. The average gross weekly household income in 1999/2000 was £525, 53 per cent higher than five years earlier. According to Mr O'Hanlon, wage income - with many unemployed people finding work - was the main component. Total direct income increased by 61 per cent to £461, while State transfer payments increased by 11 per cent to £64. Taking inflation into account, real incomes grew 35 per cent. Disposable income for the top 20 per cent of households rose by over 61 per cent, compared with 37 per cent in the bottom 20 per cent. The field work for the survey was done from mid-1999 to mid-2000. The results will be incorporated into the consumer price index in January.
