Minimum cost of living ‘up almost 20% since 2020'

Irish Times

4 hours ago

A very basic
cost of living
has jumped by almost 20 per cent since 2020, with the spike leaving many struggling to make ends meet, according to research published on Tuesday morning.
The annual
Minimal Essential Standard of Living
(MESL) study compiled by the Vincentian Research Centre at the
Society of Saint Vincent de Paul
(SVP) measures what people need for a basic standard of living and highlights a 1.8 per cent jump in prices last year, with a climb of 18.8 per cent since 2020.
It looked at the average weekly cost of goods and services such as food, clothes and energy for a socially acceptable minimum standard of living.
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Cost-of-living rise outstrips social welfare increases, report finds
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The report highlights how the weekly cost of a child over 12 is higher than any other age group at €158, with social welfare meeting just 64 per cent of that. The cost of the needs of a primary school-age child is €98, while the needs of a preschool-age child cost €72 per week.
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The costs for infants are 15 per cent lower than an inflation-adjusted estimate, with prices falling as parents swapped higher-cost items such as nappies and infant formula with own-brand options
Costs for a preschool-aged child are 31 per cent higher than estimates, as the higher cost of pain relief medication, cold treatments and clothes are among the factors driving costs up.
Costs for primary schoolchildren were 2.1 per cent higher than estimates suggested, with increased allowances for activities, birthdays and Christmas forcing prices higher, while the school and book rental schemes significantly reduced potential education costs.
For second-level age children, costs were put at 4.8 per cent higher than inflation-adjusted estimates, with social pressures facing teenagers as well as the need to replace children's clothing frequently, due to the rate at which they grow, highlighted by parents.
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Food costs decreased for this age group compared to last year, while the extension of the Free Schoolbooks Scheme to post-primary schools has contributed to a significant reduction in the 2025 education cost for a second-level child.
The MESL needs for a one-parent household with a primary and second-level child cost €555 per week, and when dependent on social welfare supports, income only meets 82 per cent of this household's minimum needs.
While employment generally improves household income, the adequacy of the National Minimum Wage continues to be a concern.
'The analysis demonstrates the crucial role of in-work supports, affordable childcare and affordable housing in enabling income adequacy for households in employment,' the report says.
The cost of the minimum baskets for an urban single adult in minimum wage full-time employment has risen by 5.6 per cent due to higher rents and an increase in energy and food costs.