Survey on Income and Living Conditions (SILC) 2025

Cost-of-living Measures 2024

In 2024, the Government continued its implementation of a suite of cost-of-living measures aimed at helping households meet higher costs of living. The annual average rate of inflation in 2024 was +1.7%. The largest price increases were recorded for Restaurants & Hotels at 3.7%. For further information see Consumer Price Index December 2024.

In this chapter, at risk of poverty rates in SILC 2025 (calendar year 2024) are calculated ‘excluding cost-of-living measures’ (what at risk of poverty rates would have been if cost-of-living measures were not implemented in 2024). ‘Excluding cost-of-living measures’ calculates the at risk of poverty rate (using the standard at risk of poverty threshold of €19,060). Household and equivalised income are presented both ‘including cost-of-living measures’ and ‘excluding cost-of-living measures’ (what income would have been if cost-of-living measures had not been implemented in 2024).

The cost-of-living measures that were considered when calculating poverty rates ‘excluding cost-of-living measures’ are listed below.

Budget 2024 contained cost-of-living measures that were paid to individuals and households during 2024. Budget cost-of-living measures that were paid/implemented in 2024 included:

• Two universal €150 energy credits applied to domestic electricity customer accounts in January 2024 and in March 2024. 
• Cost of living bonus double payment in January 2024.

Budget 2025 contained additional cost-of-living measures that were paid to individuals and households during the latter part of 2024. Budget cost-of-living measures that were paid/implemented in 2024 included:

• a double monthly payment for Child Benefit for each child in November 2024;
• a €300 lump sum Fuel Allowance payment to all households that were in receipt of the Fuel Allowance;
• a €200 cost-of-living lump sum payment for pensioners and people in receipt of the Living Alone Allowance;
• a €400 cost-of-living lump sum payment to recipients of the Working Family Payment;
• a €400 cost-of-living lump sum payment for people getting the Carer's Support Grant;
• a €400 cost-of-living lump sum for people in receipt of Disability Allowance, Invalidity Pension or Blind Pension;
• a €100 cost-of-living lump sum payment for people with a qualified child;
• a universal €125 energy credit applied to domestic electricity customer accounts in November 2024.

The income reference period of SILC in year T is the calendar year T-1, therefore SILC 2025 at risk of poverty rates were calculated using January to December 2024 income. The electricity credits that households received in 2024 are treated as income in the SILC survey.

Cost-of-Living measures associated with a reduction in the risk of poverty

The SILC 2025 national at risk of poverty rate was 12.6%, up from 11.7% in SILC 2024. Excluding cost-of-living measures, the at risk of poverty rate (using the standard at risk of poverty threshold of €19,060) would have been 14.9%. Excluding cost-of-living measures, the at risk of poverty rate for SILC 2024 was 14.1% (using the 2024 standard at risk of poverty threshold of €17,998).

The SILC 2025 consistent poverty rate was 4.7%. Without cost-of-living measures, the rate would have been 5.4%. The consistent poverty rate is based upon both the at risk of poverty rate and enforced deprivation rate. In this analysis the impact of cost-of-living measures on consistent poverty accounts for just the impact the measures had on the at risk of poverty rate, as we are unable to estimate the impact the cost-of-living measures had on the enforced deprivation rate. See figure 6.1 and table 6.1.

Cost-of-Living measures have the greatest impact on persons aged 65 and over

The national at risk of poverty rate went up by just under one percentage point from 11.7% in SILC 2024 to 12.6% in SILC 2025. Analysis by age group shows a decrease in the poverty rate for the 50-64 age group, from 11.4% in SILC 2024 to 10.5% in SILC 2025. Otherwise, there has been an increase in poverty rates for all other age groups. See figure 6.2 and table 5.1 in Poverty Chapter.

Analysis of the impact of the cost-of-living measures on reducing the at risk of poverty rates by age group shows that the largest impact was for people aged 65 years and older. Cost-of-living measures reduced the at risk of poverty rate for people in this age group in SILC 2025 from 20.7% to 14.8%. This 5.9 percentage point difference for this age group in SILC 2025 was less of an impact than the 7.8 and 8.6 percentage points in SILC 2024 and SILC 2023 respectively.

Cost-of-living measures had the least impact on reducing the poverty rates of those aged 18 to 34. Excluding cost-of-living measures, the at risk of poverty rate for people aged 18 to 34 would have been 10.0%. Including cost-of-living measures, their poverty rate was 9.3%. See figure 6.2 and table 6.1.

In households with children, Cost-of-Living measures were most impactful for single adult homes

Analysis by household composition on the impact of the cost-of-living measures in reducing poverty rates shows the largest impact was reducing the at risk of poverty rate in single-adult households composed of one adult aged 65 years and over. In 2025, 30.3% of people living in these households were at risk of poverty. Excluding cost-of-living measures, their 2025 at risk of poverty rate would have been 40.9%.

For households with children, the largest impact in reducing at risk of poverty rates was for single-adult households with at least one child under 18 years. In SILC 2025, the at risk of poverty rate for this group was 17.1%, excluding cost-of-living measures the rate would have been 25.6%. By comparison, 13.6% of people living in two adult households with one to three children were at risk of poverty in 2025. Without cost-of-living measures the rate would have had been just over one percentage point higher at 14.9%. See figure 6.3 and table 6.1.

Cost-of-Living measures led to a 4.1 percentage point reduction in the at risk of poverty rate for persons living in rented accommodation

Analysis of the impact of the cost-of living measures on reducing the at risk of poverty rates by tenure status shows that, in percentage point terms, the largest impact was for people living in rented accommodation. In 2025, under one in four (24.2%) people living in rented accommodation were at risk of poverty. Without cost-of-living measures, 28.3% of people living in rented accommodation would have been at risk of poverty. For people living in owner-occupied accommodation, 7.4% were at risk of poverty in 2025. Without cost-of-living measures, the at risk of poverty rate for this group would have been 9.0%. See table 6.1.

Analysis of the impact of the cost-of living measures on the at risk of poverty rates by Principal Economic Status shows that, in percentage point terms, the largest impact was for those unable to work due to long-standing health problems. In 2025, 28.4% of these individuals were at risk of poverty. Without cost-of-living measures the at risk of poverty rate would have been 7.9 percentage points higher, and 36.3% of those unable to work due to long-standing health problems would have been at risk of poverty. Cost-of-living measures had the least impact on the at risk of poverty rate for those who were employed and those who were students or pupils. See figure 6.4 and table 6.1.

Cost-of-Living measures accounted for 1.4% of household disposable income

Mean household disposable income in SILC 2025 was estimated to be €71,680. If mean cost-of-living measures of €1,015 are excluded, household disposable income would have been €70,665. The cost-of-living measures accounted for 1.4% of household disposable income. The mean household disposable income in SILC 2024 was €67,864, and without the average cost-of-living measures of €924 (1.4%), household disposable income would have been €66,921. See table 6.2 and figure 6.5

Analysing the cost-of-living measures by household composition, it appears that single adult households aged 65 and over, and single adult households with children aged under 18, received the greatest amount of cost-of-living supports as a proportion of their income in both SILC 2024 and 2025. In SILC 2025, cost-of-living measures accounted for 4.0% of mean household disposable income for single adult households aged 65 and over, while they accounted for 3.3% of mean household disposable income for single adult households with children aged under 18. Cost-of-living measures accounted for the smallest proportion of mean household disposable income for households with 2 adults both aged under 65 (0.8%), and 3 or more adult households (1.0%). See table 6.2 and figure 6.6

Analysis by age group shows that for people aged 65 and over, the cost-of-living measures as a proportion of their equivalised disposable income were 2.0% and 2.4% in SILC 2024 and 2025 respectively. As a significant number of people aged 65 and over were relatively close to the standard at risk of poverty threshold (€19,060), the cost-of-living measures had a significant impact on reducing the at risk of poverty rate for this age group in SILC 2025.

Those aged 18 to 34 years received the lowest proportion of their equivalised disposable income from cost-of-living measures (1.0%) in SILC 2025. See table 6.2 and figure 6.7

Cost-of-living measures accounted for 3.9% of equivalised disposable income for those unable to work due to long-standing health problems in SILC 2025. Those who reported their Principal Economic Status as unemployed, retired or fulfilling domestic tasks had cost-of-living measures account for approximately 2% of their equivalised disposable income, while it accounted for 0.9% and 1.1% for those classified as employed or students and pupils. See table 6.2 and figure 6.8

When looking across the equivalised income distribution, it appears that individuals on the lower end of the income distribution received more from cost-of-living measures as a proportion of their equivalised income. Cost-of-living supports received by individuals in the first quintile accounted for 3.9% of their equivalised disposable income in SILC 2025. This percentage falls the further up the income distribution one goes. For example, supports received by those in the fifth income quintile represented 0.5% of mean equivalised income. See table 6.2 and figure 6.9

Looking at the mean equivalised value of cost-of-living measures by equivalised disposable income quintiles, figure 6.10 shows that those in the first quintile received the highest average cost-of-living measures with an average equivalised payment of €668 in SILC 2025 (income reference year 2024). The further up the equivalised income distribution, the lower the value of the equivalised cost-of-living measures received, with individuals receiving an average equivalised payment of €364 in the fifth quintile. Comparing the cost-of-living measures in SILC 2024 and SILC 2025, it appears that the measures paid in calendar year 2024 (SILC 2025) were more progressively distributed across the income distribution, when compared to payments made during 2023 (SILC 2024). See table 6.2 and figure 6.10.

At Risk of Poverty Rate Anchored at a Moment in Time

For a given year, the ‘at risk of poverty rate anchored at a moment in time’ is the share of the population whose income in a given year is below the at risk of poverty threshold calculated in the standard way for a previous base year and then adjusted for inflation. The purpose of this indicator is to get some indication of the changes in ‘absolute poverty’ over time. The deflator is derived from the monthly Consumer Price Index (CPI) and takes into account the rolling nature of the income data collected by SILC.

In SILC 2020 the at risk of poverty rate was 12.8%. Adjusting the 2020 at risk of poverty threshold for inflation and using the adjusted 2020 threshold value to recalculate poverty rates in subsequent years shows a decrease in the 2021 at risk of poverty rate (8.5%), a further decrease in 2022 to 8.0%, an increase in 2023 to 9.1%, a drop in 2024 to 8.8%, and a further fall to 8.0% in 2025. The increase in this year on year anchored at risk of poverty rate corresponds with the introduction of cost-of-living measures in SILC 2023. See figure 6.11 and table 6.3.

The SILC 2025 at risk of poverty rate was 12.6%, up from 11.7% in 2024. If the 2025 at risk of poverty rate was calculated using the inflation adjusted 2024 threshold, then the at risk of poverty rate in 2025 would have been 10.3%. In other words, the 2025 at risk of poverty rate anchored in 2024 was 10.3%, slightly lower than the 2024 rate of 10.6% and was 2.3 percentage points lower when compared to the actual 2025 at risk of poverty rate of 12.6%. See table 6.3.