Population claims that the amount needed to pay for usual necessary expenses of one household member accounts for at least EUR 483 monthly

17.03.2016

In the survey EU Statistics on Income and Living Conditions conducted in 2015 by the Central Statistical Bureau (CSB) Latvian population indicated that one household member needs at least EUR 483 monthly. Last year to pay for usual necessary expenses of one household member households needed EUR 31 or 6.7 % more financial means than in 2014.

Nevertheless during the last years household disposable income have grown sharply, the amount still is too small to make ends meet. In 2014, Latvian population pointed out that one household member needs at least EU 452 monthly, while disposable income per household member were by 14 % lower and reached only EUR 387 monthly. Data on income in 2015 will be compiled in a similar survey this year.

The survey data show that, in 2015 population assessment of ability to make and meet (i.e., pay for usual necessary expenses) has improved. The share of households paying for usual necessary expenses with great difficulty has reduced from 27.0 % in 2013 to 16.9 % in 2015. Last year, 17.1 % of households have admitted that pay for usual daily expenses fairly easily (5.7 percentage points more than in 2013).

Answers to the question on ability to pay for usual necessary expenses, 2013 –2015 (per cent)

Answer

2013

2014

2015

With great difficulty

27.0

20.1

16.9

With difficulty

29.6

30.4

28.2

With some difficulty

28.6

32.2

32.6

Fairly easily

11.4

13.4

17.1

Easily

3.0

3.6

4.6

Very easily

0.4

0.2

0.5

The greatest difficulty to pay for usual necessary expenses was faced by single old persons (aged over 65), households consisting of one adult with children, as well as by couples with three and more children.

Answers to the questions on difficulties to pay for usual necessary expenses, 2015 (per cent)


  

Compared to 2014, in 2015 notably higher number of couples with children mentioned that pay for usual necessary expenses easily or very easily. In 2015, 9.4 % of households, in which couple has one child, indicated that pay for usual necessary expenses easily or very easily, while in 2014 the share of such households constituted 5.5 %. Payment for usual necessary expenses was made easily or very easily by 10.2% of households consisting of couples with two children (in 2014 – 4.4 %), and by 9.8 % of households, in which there are couples with three and more children (in 2014 – 2.6 %).

Answers to the question on ability to pay for usual necessary expenses by quintile group,
2013–2015 (per cent)

In 2015, poorest households (1st quintile group) indicated that, they would need EUR 339 per household member monthly to pay for usual necessary expenses. 68.3 % of these households paid for usual necessary expenses with difficulty or great difficulty, and only 1.4 % – easily or very easily. In richest households (5th quintile group) the amount needed to pay for usual necessary expenses was notably higher – EUR 718 per household member monthly. Only 16.8 % of the richest households pointed out that pay for usual necessary expenses with difficulty or great difficulty, whereas 15.3 % – easily or very easily. Remarkably that, the amount needed to pay for usual necessary expenses in the poorest households rose by 6.6 % during the year, while in the richest households – by 9.1 %.

Compared to 2014, in 2015 the sharpest drop (of 7.8 percentage points) in the share of households paying for usual necessary expenses with difficulty or great difficulty was recorded in 4th quintile group. In 3rd quintile group the share of such households declined by 6.4 percentage points, while in 1st (i.e., poorest) quintile group only by 4.8 percentage points.

Population opinion on the amount needed to pay for usual necessary expenses and statistics on household disposable income were obtained within the survey EU Statistics on Income and Living Conditions (EU-SILC) of 2015 conducted by the CSB. The survey covered 6.1 thousand households and 11.7 thousand respondents aged over 16. Data on household disposable income in 2015 will be obtained within the framework of the EU-SILC survey of 2016.

Methodological explanations

Household – several persons living in one dwelling and sharing expenditures or one person having separate housekeeping. CSB data show that, in 2014 in one household on average there were 2.4 persons.

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, pensions and benefits received, 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 for tax adjustments from the State Revenue Service (for business activities, eligible costs – education, medical treatment etc.).

Quintile group – one fifth (20%) of the number of surveyed households grouped in increasing sequence according to disposable income per one household member. The lowest (first or bottom) quintile group includes one fifth of the households with the lowest income, while the highest (fifth or top) – one fifth of the households with the highest income.

 

Media requests:
Beate Danusēviča, Kristīne Romanovska
Information and Communication Section
media [at] csb [dot] gov [dot] lv
Tel.: + 371 67366924, + 371 67366621, + 371 27880666
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More information on data:
Viktors Veretjanovs
Income and Living Conditions Statistics Section
E-mail: Viktors [dot] Veretjanovs [at] csb [dot] gov [dot] lv
Tel.: + 371 67366609