Low-income earners forced into financially risky behaviours during cost of living crisis

The study shows that the most deprived households in Ireland — and particularly those with children — would 'especially benefit from assistance beyond recent temporary measures'.

Households on low incomes were only able to cope with the cost of living crisis by making “high-risk” changes to their finances, such as taking on additional loans, according to new research.

A report by the Economic and Social Research Institute (ESRI) says low-income households typically resorted to financially risky behaviours in order to counteract the effects of the crisis — including taking on additional loans, going into arrears on the loans or commitments they already had, and using their savings to keep their heads above water.