The response of low-income households to the cost-of-living crisis in Ireland

The rise in inflation in recent years triggered a cost-of-living crisis, in which households’ ability to afford basic necessities declined. The cost-of-living crisis disproportionately affected lower income households, with the proportion in material deprivation (i.e. unable to afford basic necessities) rising by a fifth. This study examines how these households responded to this economic pressure and the challenges they faced in accessing government benefits and available support services during the cost-of-living crisis.

In the absence of detailed longitudinal data, the study employed a cross-sectional survey with techniques from behavioural science to improve recall and limit biases in responses. A nationally representative sample of 1,615 financial decision-makers from low- (i.e. below ~85 per cent of the median) income households undertook the study between May and June 2024. Most were recruited from the online panels of market research companies and completed the study online, but a subset was recruited in-person in low-income areas.

Participants reported on changes they made in their day-to-day spending, borrowing and saving due to the cost-of-living crisis, described as the period following the Russian invasion of Ukraine in 2022. They also reported on their use of government benefits and support services during the cost-of-living crisis, with a focus on administrative burdens (i.e. the time, effort, and frustration involved and their potential role as barriers to using supports).