One household member would need EUR 431 per month to cover daily costs

19.03.2014

Data of the Survey on Income and Living Conditions, conducted by the Central Statistical Bureau in 2013 show that despite the fact that household monthly disposable income1 is gradually increasing, this growth cannot cover the daily costs indicated by households.

In 2012 the amount needed for households to cover their daily costs comprised EUR 399 (LVL 280) per one household member, while such income was only EUR 320 (LVL 225). In 2013 households considered that they needed EUR 431 (LVL 303) for their daily costs. It is an increase of EUR 32 (LVL 23) or 8% as compared to the previous year. Data on income in 2013 will be compiled in a similar survey that has already been launched in March and will last until the end of June.

The insufficient income level is also outlined by the answers provided by households to the question regarding their ability to cover the daily costs. The survey data show an increase in the share of households that experience great difficulty in covering their daily expenditure.

Answers to question on difficulty to cover daily costs in 2012 and 2013 (in per cent)

 

2012

2013

With great difficulty

22.8

27.0

With difficulty

30.5

29.6

With some difficulty

31.5

28.6

Fairly easy

12.1

11.4

Easy

2.7

3.0

Very easy

0.4

0.4

The hardest situation is faced by households consisting of a couple with three and more children under 18, by households composed of one adult with children, and by single pensioner households.

Answers to question on difficulty to cover daily costs in 2013

(in per cent)

Data source: Central Statistical Bureau of Latvia

CSB data show that single pensioner households experience worsening of the financial situation more severely than other groups.  In 2013 there was a rapid growth in the number of households of single persons aged 65 and over, which experienced great difficulty in covering daily costs. If in 2012 this answer was provided by 28.1% of such households, in 2013 - already by 36.5%. A similar trend (though less distinct) was also observed in households of one adult with children. If in 2012, 31.2 % of such households admitted facing great difficulty covering daily costs, in 2013 this answer was given already by 34.1%

Data on household disposable income and sufficiency have been obtained from CSB Income and Living Conditions Survey 2013 (EU-SILC – EU Statistics on Income and Living Conditions). Within the framework of this survey 6.3 thousand households and 12 thousand respondents aged 16 and over were interviewed.

 

More information:
Viktors Veretjanovs
Social Statistics Department
Income and Living Conditions Statistics Section
Tel. +371 67366609

 

Methodological explanations

Disposable income - 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 (for business activities, eligible costs – education, medical treatment etc.).