Irish Times, 05/10/2002

Gap between rich and poor widens
The gap between rich and poor in Irish society has widened significantly, according to a Central Statistics Office survey of household incomes.

The report, published yesterday, found that the average disposable income of households grossing in excess of €1,339.22 a week increased by over 61 per cent over the five-year period 1994/1995-1999/2000.

This compared to an increase of just 37 per cent for households grossing less than €214.46.

Moreover, the report cites major differences in spending trends between rich and poor families.

Some 29 per cent of spending in low-income households went on food, compared to only 16 per cent in high-income households.

In contrast, spending on transport, services and miscellaneous expenses accounted for up to half of total expenditure in high-income households, compared to just 30 per cent in low-income ones.

The figures are derived from a CSO Household Budget Survey conducted between June 1999 and July 2000 in 7,644 households.

Compared to a similar survey five years earlier, they record a widening gap between high-income and low-income families.

In particular, the ratio between the average weekly disposable income of households in the lowest income bracket (€106.23) against that in the highest bracket (€1,428.71) was approximately 13:1 in 1999/2000. In 1994/1995, the corresponding ratio was 11:1.

Highlighting a general improvement in the economy, the survey estimated average weekly expenditure in 1999/2000 at €577.72, a 46 per cent increase on five years earlier.

Urban households spent more per week (€612.53) than rural, non-farm households (€510.18). Geographically, Dublin households spent most of all (€684.06), while households in the south-east spent least (€488.62).

The increase in spending is matched by an increase in average gross weekly household income - up by 53 per cent on five years earlier to €666.72. Much of the increase was accounted for by total direct income (mainly wages), which increased by 61 per cent to €585.41. In contrast, State transfer payments rose by just 11 per cent to €81.32.

The survey also found that the concentration of pensioners in low-income households increased from 30 per cent to 38 per cent.

In another indicator of social change, households with a mortgage spent over 2½ times more in 1999/2000 than those renting from local authorities.

As for what people spent their money on, the survey showed 96 per cent of families had a television set in 1999/2000, compared to 88 per cent five years earlier and 61 per cent in 1987.

Almost 90 per cent of households in the most recent survey had a fixed telephone compared to 76 per cent in 1994/95; 85 per cent had a video player compared to 61 per cent; and 29 per cent had a home computer compared to 16 per cent.

The 1999/2000 survey was the first to record a figure for mobile phone ownership, estimating it at 44 per cent of households.