Low-income families faced losing up to 30% of earnings without lockdown supports, CSO says

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Covid-19 income supports such as the pandemic unemployment payment played a significant role in supporting households, new analysis from the CSO shows.

Image: Shutterstock/FotoDuets Image: Shutterstock/FotoDuets LOW-INCOME HOUSEHOLDS would have lost between 18% and 30% of their earnings during the first lockdown in 2020 were it not for new financial supports, figures suggest.

The CSO study looked at the debt sustainability of Irish households in the first three quarters of 2020, which includes the first lockdown and the eventual reopening of society. That is compared to drops of between 7% and 18% for those in the top half of the income distribution bracket. In the third quarter, as people began to return to work, the median income would have fallen by 5.7% were it not for the income supports, the analysis found.A slight increase in quarter two of 2020 brought the median debt-to-income ratio to 60.9% of gross income.

#Open journalism No news is bad news Support The Journal Your contributions will help us continue to deliver the stories that are important to youBut without pandemic income supports, the report said the ratio would have ballooned to 552.3%.

 

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