Although disposable income has dipped slightly compared with three months ago, the finances of Irish households are in a better state than at any point over the past four years, according to a new survey.
The Irish League of Credit Unions (ILCU) income-tracking survey suggests 52 per cent of those who took part believed their income level had either remained the same or improved over the past 12 months, compared with just over a third who answered in the positive this time last year.
Based on results of the quarterly “What’s Left” survey, 483,000 people have nothing left at the end of the month once all bills are paid, a decrease of 1,000 since August. This is down 35,000 year on year. A further 1.7 million people said they had €100 or less left at the end of the month, up 137,000 on the August figure.
Utilities cost increase
However the survey records an increase in the cost of monthly household utilities, with transport costs, groceries, gas, mobile phone and internet bills all climbing over the past three months.
The November tracker suggests the average monthly disposable income for all adults, once essential bills have been paid, decreased by €12 from €183 to €171 over the past three months. Working adults saw their disposable income fall from €220 to €208 over the same period.
Higher bills mean that while income levels are increasing so too are the numbers saying they can’t afford to pay their bills on time every month. According to the survey, 37 per cent of people are putting off paying essential bills on time each month, up from 31 per cent in August.
The vast majority of the group struggling to pay all their bills on time have to make sacrifices in other areas to pay essential bills. Health insurance, food and a second car are the most likely of what the ILCU describe as essential bills to suffer. Of non-essential items, holidays, nights out and clothing and footwear are the most sacrificed items among those struggling to get by.
Highest level
The latest data puts the amounts being saved by Irish consumers at their highest level since the tracker surveys began in 2011, with those who were able to save putting aside an average of €232 a month. Year on year, the number of adults who said they were in a position to save climbed to 42 per cent from 38 per cent.
Just 36 per cent of those surveyed said they would benefit from the budget, while 44 per cent said it would have no impact on their family finances.
