Oireachtas Joint and Select Committees

Wednesday, 23 March 2022

Committee on Budgetary Oversight

Pre-Stability Programme Update Scrutiny (Resumed): Central Bank of Ireland

Dr. Mark Cassidy:

We produced analysis recently so it is right up to date. It shows that those who are being hit disproportionately are lower income groups, people in rural compared with urban area and older people compared with younger people. That primarily reflects the different shares of people's weekly expenditure that goes on energy products. I will outline the figures I have for income groups.

The average amount of a person's income spent on energy in the economy is 8%. The amount spent is 10% for the people with the lowest 20% of incomes and it is 6% for the highest 20% of incomes. That is a significant share of the disposable income of lower income groups. We think the average household energy bill this year could be €1,200 to €1,300 higher compared with two years ago. Older people and people in rural areas spend a higher proportion on energy. I do not have the breakdown for rural and urban areas, but the amount that lower income groups spend on their grocery bills is higher too. I can confirm what the Deputy is saying.

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