Household income to fall by €7k over 4 years

THE average Irish household’s income will fall by €7,000 over the next four years as a result of austerity measures, according to the Government’s economic think-tank which has warned that the eurozone is on the brink of another recession.

The Economic and Social Research Institute has estimated that the disposable income of the average family will fall by 8% over the next four years due to tax increases and higher service charges. It follows a 10% reduction in disposable income between 2008 and 2010.

In its latest quarterly economic commentary, the ESRI predicts that annual household income will fall by €1,850 each year up to 2014 and by €1,450 in 2015.