Revealed: the number of people who wouldn't cope if they got a sudden bill for €1,000

Irish Independent

23-05-2025

The findings in a recent survey have prompted a leading economist to support calls for another cost-of-living package in this year's budget.
Researchers asked people if they could cope financially if they were faced with an emergency costing €1,000.
One in seven (14pc) consumers say they would be unable to cope with such a financial emergency, a special question asked as part of the Credit Union Consumer Sentiment Survey for May shows.
Independent economist Austin Hughes, who analyses the survey, said the results suggest a continuing strain on household finances from the cost-of-living crisis. He said household spending power has declined and the findings support calls for another cost-of-living package in this year's budget.
'From a policy perspective, these survey findings run counter to the widely heard argument that lower inflation and rising aggregate incomes mean further fiscal supports are no longer required,' he said.
The Government has ruled out an across-the-board package to support households in October's budget, but hinted at measures targeted at the most vulnerable. Central Statistics Office figures show grocery prices are up an estimated 36pc in the last four years.
'While inflation has eased over the past year, it has started to pick up again in recent months and, far more importantly, consumer prices have not ­retraced any of the sharp increases of recent years,' Mr Hughes said.
'In these circumstances, it is not ­entirely surprising that significant numbers of Irish consumers say they would struggle to cope with a financial emergency at present.'
The Credit Union survey, in partnership with Core Research, shows ­financial circumstances and conditions continue to vary markedly across Irish households.
Responses show a third of consumers would be able to call on savings to deal with an unexpected financial emergency. One in five would resort to using their income to fund the outlay.
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Mr Hughes said survey findings indicate just over half of Irish consumers could be regarded as financially 'comfortable' at present.
About one-in-four consumers might be seen as 'clinging on'' financially. He said around one in five could be ­described as 'coping' in the current circumstances.
However, this share who are coping has declined as consumer circumstances diverge.
'The trend in recent years is for a small increase in the numbers clinging on. There is a slight increase in the comfortable, and a drop in the number of those who are coping,' Mr Hughes said.
He said this raised a question about whether middle-income people have been squeezed too much. The economist said the evidence at home and abroad is that economic and social fracture is damaging and destabilising.