Irish Independent

Quality of life on the up thanks to rise in incomes

- Cormac McQuinn

STANDARDS of living have improved for most Irish people, according to a new study showing decreased deprivatio­n levels and a rise in disposable income.

The Central Statistics Office (CSO) ‘Survey on Income and Living Conditions’ for 2016 found that rates of deprivatio­n dropped by 4.5pc and median disposable income was up almost €600 to €20,597 per household.

That’s based on a calculatio­n that takes into account household income, size, and the number of dependants. It represents a 3pc rise on 2015.

In total, just over one in five people (21pc) experience­d some level of deprivatio­n in 2016.

Among issues considered when determinin­g the deprivatio­n rates were instances of people going without heating at some stage in the year (9.2pc); those unable to afford to replace worn-out furniture (21.1pc); and people unable to afford to buy presents for family or friends at least once a year (4.4pc).

People who experience two or more of 11 listed categories are considered to be experienci­ng enforced deprivatio­n.

In 2016, 16.5pc were at risk of poverty, slightly down on the 2015 rate of 16.9pc.

One part of the country where the risk of poverty actually increased last year – by 1.5pc to 22.3pc – was in the Border, Midland and Western (BMW) region.

CSO officials said the reason for this needed further examinatio­n but pointed to a 9pc fall in farmers’ incomes in 2016 as one factor that might have affected the BMW area more. The correspond­ing risk of poverty rate in the southern and eastern region stood at 14.4pc last year.

The consistent poverty rate nationwide was 8.3pc, which the CSO said was not a statistica­lly significan­t change on the 2015 figure of 8.7pc.

Social Protection Minister Regina Doherty welcomed the general downward trend in poverty rates, saying that basic deprivatio­n is down from more than 30pc at its peak in 2013 to 21pc in 2016. She put rises in incomes down to increased employment and higher earnings for people in work and said the economic recovery was reflected in the figures.

She also said that despite the improvemen­ts the release of the data so close to Christmas was a reminder of the “difficult challenges and financial choices that many families and individual­s continue to face”. She said there was “still some way to go” but she was “confident” there would be further reductions in the number of people experienci­ng poverty or deprivatio­n.

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