Lone parents, households with children, single working-age adults and renters are the groups most likely to have an income that does not meet their basic expenditure needs

December 20, 2024

Social Inclusion and Equality
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A new study published as part of a research programme between the ESRI and the Department of Social Protection examines how households’ income compares to an independently determined benchmark of the minimum needed to meet essential expenditures in Ireland.

The benchmark is the Minimum Essential Standard of Living (MESL) established by the Vincentian MESL Research Centre at SVP. 

Key findings include:

  • In 2022, households in Ireland, on average, needed 45% of their disposable weekly income, after housing costs, to cover basic expenditure needs.
  • Significant disparities exist across different tenures and household types: owner-occupiers require between 38% and 42% of their income, those in private rented accommodation need 56%, and those in receipt of rent subsidies need 84% to meet basic needs.
  • Overall, the majority of people live in households that meet their expenditure needs. 11% of people do not live in households that meet their expenditure needs, with children, renters, lone parents, and single working-age adults being the most affected groups.
  • A significant proportion of individuals living below their expenditure needs are also identified as being in income poverty (i.e., having a household income less than 60% of the median income). The study finds that 72% of these individuals are at-risk-of-poverty, 35% experience material deprivation, and 23% live in consistent poverty in 2022.
  • People living below their expenditure needs also face significantly more financial challenges than those living above. In 2022, 41% of people living below their expenditure needs had difficulty making ends meet and 21% have been in arrears compared to 14% and 10% respectively for those above their expenditure needs.

The Department of Social Protection said: 

“The report was produced under the Department’s research partnership with the ESRI. It shows that while consistent poverty levels are at a historic low and fell for all groups measured by the CSO’s latest Survey of Income and Living Conditions, a minority of people are living in households where their expenditure needs are not met. Budget 2025 delivered the largest social welfare package in the history of the State including a cost of living package that will provide additional support for households.”

Bertrand Maître, co-author of the report said:

“Although most people live in households that meet their expenditure needs, a higher proportion of children, tenants, lone parents, and single working-age adults do not. The study highlights the issue of housing and the need for adequate housing support for many tenants.”