Households are short of money to cover daily costs


Survey carried out by the Central Statistical Bureau (CSB) show that 87% of households in 2011 (85% in 2010) found it difficult to cover everyday expenses: 25% of all households answered that they cover daily costs with a great difficulty (23% in 2010), 33% admitted that they cover the payments with difficulty (32% in 2010), whereas 30% indicated that daily expenses are some difficulty for them (same number in 2010). 11% of the households indicated that it is rather easy for them to pay the daily costs (13% in 2010), and only 2% of the households were able to say that it is easy or very easy for them to cover everyday expenses (same number in 2010).

The hardest situation is faced by the households consisting of couple with three and more children as well as households composed by one adult with children1.

Answers to the questions on difficulties to cover daily costs in 2011
(in per cent)

Within the framework of the survey households were asked to indicate the smallest amount of net monthly income that in their opinion would be necessary to cover the daily costs. With an aim to compare the data among various households, the income sums were recalculated by the equivalent consumer2, considering the number of household members and household structure.

Household disposable income3 ratio to lowest net income necessary to cover daily costs, 2011
(LVL, per equivalent consumer monthly)

The lowest sums necessary to make ends meet were indicated by households consisting of one person aged 65 and over (LVL 282 per equivalent consumer monthly) as well as by couples with three and more children (LVL 360 per equivalent consumer monthly).

With an aim to acquire information on financial situation in households, the CSB conducted a survey on Community Statistics on Income and Living Conditions 2011 (EU-SILC) and surveyed 6.6 thousand households. Such kind of survey is carried out in all Member States of the European Union.


Prepared by the Income and Living Conditions Statistics Section
Viktors Veretjanovs
Tel. 67366609

Methodological explanations

1 Child – a person aged less than 18.

2 Income per equivalent consumer is calculated by diving household income to equivalent household size, formed basing on the modified OECD equivalence scale (1.0, 0.5, 0.3) - this scale gives a weight of 1.0 to the first adult, 0.5 to any other household member aged 14 years and over and 0.3 to each child aged less than 14 years.

3 Disposable income is cash income from labour; employee income in kind received by using company car for private needs estimated in cash; income or losses received from self-employment; received pensions and benefits; regular material assistance from other households; profit from interests of deposits, dividends, shares; income received by children aged under 16; income from property rental; receipts from tax adjustments from the State Revenue Service (SRS) due to overpaid income tax (for business activities, eligible costs – education, medical treatment etc. From this total amount of income the following are deducted: real estate tax, amount of money regularly given to other households, amount paid to the SRS due to unpaid or insufficiently paid income tax.