Income assessment and financial problems; households

This table shows households’ assessment of their income position and the extent to which they are subject to financial constraints. It covers the extent to which households can live up to disposable income, the difficulty they have in paying monthly housing expenses and in repaying loans and repaying items purchased on instalments. The table also contains information on the ability to pay for certain common goods and services, such as clothes or annual leave, and the existence of arrears. A revision of income statistics has led to a downward revision of the number of low-income households. An important adjustment is the revision of the economic rental value. In the study European Union-Statistics on Income and Living Conditions (EU-SILC), the source of data on subjective income assessment, the new methodology is applied from 2016 onwards. This led to a downward revision of the number of low-income households in 2016. In addition, the composition of this group has changed: the adjustment resulted in a smaller share of owner-occupied households among low-income households. Compared to tenants, homeowners say they can get around the income better and they experience less often financial constraints. Households with low income on the basis of revised income data are therefore more likely to report late payments and experience more financial tight than households at risk of poverty according to the old methodology. The derivation method of household’s main source of income has been adjusted as of 2018. For 2018, own enterprise income was always identified as the main source on the basis of a priority rule. If another source of income, e.g. wage, includes a substantial amount and if this amount is higher than the income from own enterprise, wages and no longer income from own enterprise is the household’s main source of income according to the new methodology. The new derivation rule means that the number of households with income from own enterprises as the main source of income is almost halved. Data available from: 2005. Status of the figures: The figures in this table are final until 2020. The 2021 figures are provisional. Changes as of 24 February 2022: 2020 and 2021 figures added The categories "Source: social benefits benefit: other“and”Source: income from own enterprise" has been deleted as no data are available for the entire period. When will there be new figures? February 2023.