A survey of Irish people about financial priorities, expectations for Budget 2013 and their general attitudes towards social welfare and taxation

1. Budget 2013: Fears & Hopes
Amárach Briefing for RTE Frontline/Irish Daily Mail
RTE Frontline/Irish Daily Mail
November 20121

2. For the second year running, RTE
Frontline and the Irish Daily Mail
have commissioned Amárach
Research to examine the mood of
the nation ahead of Budget 2013.
The findings are based on a
nationally representative sample of
1,000 adults in Ireland, interviewed
online in November 2012.
With economic uncertainly increasing
rather than decreasing, we have
examined the current financial
circumstances of the nation’s
households and families, and their
preferences for tax and spending
changes in the forthcoming budget.
This report summarises the main
findings including comparisons with
key findings from the 2011 study.

3. RTE Frontline/
Irish Daily Mail
1. Under Pressure
consumer behaviour
2. Debt Problems
mortgages & loans
3. Balancing Act
Budget 2013

4. 1. Under Pressure
consumer behaviour

5. Feeling the Pinch
2011
2012
Incomes Under Pressure
2011 vs 2012
% %
39% 40% Decreased Decreased
2011 2012
All Adults 68 68
29%
28%
Males 65 69
18% 19% Females 70 70
18-24s 37 46
11%
10%
25-34s 62 62
4%
2% 35-44s 78 74
decreased decreased no change increased increased 45-54s 86 84
significantly slightly either way slightly significantly
55+ 74 75
Q. Would you say your level of disposable income has
increased or decreased over the last year?
Source: Amárach Research, November 2011/12
RTE Frontline/Irish Daily Mail 5

6. Money Remaining
Money remaining
%
at the end of the month Nothing
Left 2012
35%
All Adults 31
31%
Males 27
Females 36
21%
18-24s 22
25-34s 30
7% 7% 35-44s 35
45-54s 36
Nothing € 1 to 99 € 100 to 499 €500+ Refused 55+ 26
Q. Typically how much money do you have left at the end of the month
(assuming you are paid weekly please give the average of monthly),
before your next wage or salary payment?
Source: Amárach Research, November 2012
(not asked in 2011)
RTE Frontline/Irish Daily Mail 6

7. Deep Impact
2011
2012
Past Experiences
54%
% %
46% None 2011 None 2012
34%
All Adults 31 34
31%
Males 28 29
20% 19% 20% Females 34 39
15%
11%
9% 18-24s 44 43
25-34s 26 31
none of these missing a buying missing a a reduction in
mortgage groceries on loan income due
35-44s 23 23
repayment credit due to repayment to tax
insufficient increases 45-54s 22 25
funds
55+ 38 43
Q. Have any of the following happened/occurred in your household in the
past 12 months?
Source: Amárach Research, November 2011/12
RTE Frontline/Irish Daily Mail 7

8. Making An Effort
2011
2012
Cutting Expenditure
2011 vs 2012 % %
70% 66% Strong Strong
2011 2012
60% 56%
All Adults 56 66
50%
Males 52 62
40% 38%
30% Females 60 70
30%
18-24s 38 49
20%
25-34s 58 67
10% 6% 4%
35-44s 60 71
0%
A strong A slight No effort at 45-54s 75 75
effort effort all 55+ 51 68
Q. What effort, if any, have you made in the past 12 months
to reduce you household expenditure?
Source: Amárach Research, November 2011/12
RTE Frontline/Irish Daily Mail 8

9. Cut Leaders
2011
2012
Areas of Reduced Expenditure 2011 vs 2012
100%
90% 86%
81% 83%
80%
80% 77%
74%
71%
70% 65%
58%
60%
50%
40% 37%
30% 26%
20%
10%
10%
0%
leisure groceries & phone & car & travel insurance childcare &
expenses clothing energy schooling
Q. In which of the following areas, if any, have you reduced household expenditure in the past 12 months?
Source: Amárach Research, November 2011/12
RTE Frontline/Irish Daily Mail 9

10. Bridging the Gap
2011
2012
Making Ends Meet 2011 VS % %
2012 Family Family
47% 45% 2011 2012
All Adults 32 35
35%
32%
26% Males 31 33
24%
Females 34 38
9% 9%
5% 4% 18-24s 42 52
25-34s 46 52
borrowed depended borrowed not none of
money more on money declared these 35-44s 39 41
from credit card from a income to
friends or to pay bills money avoid tax 45-54s 30 24
family lender
55+ 12 15
Q. Over the past year, have you done any of the following?
Source: Amárach Research, November 2011/12
RTE Frontline/Irish Daily Mail 10

11. Missed meals due to lack of money
% Missed
32% Meals
Total 32
Males 32
68%
Females 33
18-24s 47
Yes No 25-34s 42
35-44s 36
45-54s 25
Q. Have you missed a meal because of lack of money?
55+ 18
Source: Amárach Research, November 2012
(not asked in 2011)
RTE Frontline/Irish Daily Mail 11

12. Savings Habits
2011
2012
Rainy Days 2011 VS 2012
55%
52%
48%
45%
37% 38%
33% 33% 33% 34%
29%
27% 27%
25%
18%19%
15%16%
don't save save dipped groceries phone & car & insurance leisure childcare none of
regularly regularly into & clothing energy travel expenses & these
savings to bills expenses schooling
pay for:
Q. Do you save regularly?
Q. All who save regularly: Have you had to dip into savings over the last year to help pay for any of the following?
Source: Amárach Research, November 2011/12
RTE Frontline/Irish Daily Mail 12

13. Future Concerns
2011
2012
Concerns for Next 12 Months 2011 vs 2012
75%
70%
66% 65%
49%
47%
45% 44%
42% 42%
39% 38%
33% 34%
Income cut for Income reduction Reduced hours Redundancy for Missing a loan Buying groceries Missing a
self or partner due to tax for self or partner self or partner repayment on credit due to mortgage
increases lack of funds repayment
Q. How concerned that the following might happen in the next 12 months?
Source: Amárach Research, November 2011/12
RTE Frontline/Irish Daily Mail 13

14. Difficulty Coping
24%
€50 % %
21% decrease Easily Easily
2011 2012
All Adults 24 21
12% 11% Males 28 24
8% 8% Females 20 17
18-24s 30 16
25-34s 26 19
€50 monthly €100 monthly €150 monthly 35-44s 13 19
decrease decrease decrease
45-54s 16 22
2011 Easily 2012 Easily
55+ 31 23
Q. We would now like you to tell us the likely impact that the following
scenarios would have on your after tax income:
€50/100/150 monthly decrease in income
Source: Amárach Research, November 2011/12
RTE Frontline/Irish Daily Mail 14

15. 2. Debt Problems
mortgages & loans

16. Negative Equity
2011
2012
50%
% %
42% Negative Negative
Equity Equity
30%
2011 2012
All 22 30
22%
19% 18% Mortgage
9% 10%
Males 26 32
Females 17 28
18-24s 11 17
value of home value of home value of home don't know
greater than same as less than 25-34s 33 55
mortgage mortgage mortgage
35-44s 30 34
Q. Base – all who pay mortgage: Now thinking about the value of 45-54s 14 24
your home today, do you think it is worth more than you currently
owe on your mortgage, about the same as you currently owe on 55+ 15 18
your mortgage, or less than you currently owe on your mortgage?
Source: Amárach Research, November 2011/12
RTE Frontline/Irish Daily Mail 16

17. Missed Payments
2011
2012 Average
number of
81%
monthly
74% 73%
repayments 70%
missed in
2012 = 3.9
2011 = 3.3
26% 27%
25%
19%
Have not missed Have missed one Have not missed Have missed at
any mortgage or more mortgage any other loan least one loan
repayments repayments repayments repayment
Base: All responsible for paying mortgage on the home
Q. Have you missed any mortgage repayments in the past 12 months?
Q. In the past 12 months have you missed a repayment on any other debt (e.g.: car loan, utility bill, phone bill etc)?
Source: Amárach Research, November 2011/12
RTE Frontline/Irish Daily Mail 17

18. Missed Payments
2011
2012
Mortgage Provider Contact
87%
77% 79%
69% 72%
65%
19%
12% 9%
8%
Not contacted Contacted by If contacted, Post Phone Email
by mortgage mortgage how?
provider provider
Base: All mortgage payees who have missed a repayment in past 12 months
Q. If you have missed a mortgage repayment, have you been contacted by your mortgage provider?
Q. If so, how were you contacted?
Source: Amárach Research, November 2011/12
RTE Frontline/Irish Daily Mail 18

19. 3. Balancing Act
Budget 2013

20. Budget Balance 2011 VS 2012
Increase taxes
Cut spending
% %
Tax Tax
Increases Increases
2011 2012
67% 66%
All Adults 33 34
Males 32 34
Females 33 33
18-24s 38 36
33% 34% 25-34s 33 32
35-44s 31 32
2011 2012 45-54s 32 31
Q. What do you think should be the share of tax increases 55+ 31 35
and spending cuts in meeting the requirements of the
forthcoming budget?
Source: Amárach Research, November 2011/2012
RTE Frontline/Irish Daily Mail 20

21. Closing the Budget Gap 2011 VS 2012
76%
70%
41%
39% 39% 39% 38%
34% 34% 35% 35%
33% 33% 33%
31% 30% 31%
23%
21% 20% 20%
17% 16%
12%
Increase top Cut social Cut single Introduce a Reintroduce Introduce Cut childrens Introduce Increase rate Cut in state Increase Increase
income tax welfare rates parents septic tank university water rates benefit property tax of VAT pension level bottom charges for
rate to allowance charge fees for for income tax doctor
unemployed households households rate visits/A&E
Go ahead 2011 Go ahead 2012
Q. For each tax or cut please say whether think the government should go ahead or not with each measure
RTE Frontline/Irish Daily Mail Source: Amárach Research, November 2011/12 21

22. Attitudes to Government Spending I
55% 55%
36% Ireland UK
30%
15%
6%
Keep taxes and spending Increase taxes and spend Reduce Taxes and spend
on these services at the more on health, education less on health, education
same level as now and social welfare and social welfare
Q:Suppose the government had to choose between the following , which do you think it should choose?
Source: Amárach Research, November 2011/12 , British Social Attitudes No. 29
RTE Frontline/Irish Daily Mail 22

23. Attitudes to Government Spending II
75%
53%
42%
30% 29%
15% 15%
13%
Benefits for people who Benefits for disabled people Benefits for unemployed Benefits for single parents
care for the sick or disabled who cannot work people
% 'spend more' Ireland % 'spend more' UK
Q. Some people think that there should be more government spending on social welfare, while other people disagree. For
each of the groups I read out please say whether you would like to see more or less government spending on them than now.
RTE Frontline/Irish Daily Mail Source: Amárach Research, November 2011/12 , British Social Attitudes No. 29 23

24. Attitudes to Government Spending III
62%
59%
62%
Ireland UK Ireland UK
42%
33%
28% 32%
26%
19%
9% 8%
5%
3%
1%
Benefits for Benefits for Neither
Mainly the Mainly a person Mainly a Don't know unemployed people unemployed people
government themselves and persons are too high and are too low and
their family employer discourage them from cause hardship
finding jobs
Q:Who do you think should mainly be responsible for ensuring that people have enough to live on if the become
unemployed? Q:Which of the two statements comes lose to your own view ?
Source: Amárach Research, November 2011/12 , British Social Attitudes No. 29
RTE Frontline/Irish Daily Mail 24

25. Attitudes to Government Spending IV
67% % %
Irish Irish
agree 1 agree 2
54%
50% All 50 67
Recipients
37%
Males 50 68
Females 51 65
18-24s 59 53
25-34s 49 61
35-44s 51 67
45-54s 46 69
If benefits weren't so generous Government should redistribute
people would learn to stand on income from the better off to those
their own two feet less well off
55+ 49 78
Ireland Agree UK Agree
Q:Please say whether you agree or disagree with the following statements ?
Source: Amárach Research, November 2011/12 , British Social Attitudes No. 29
RTE Frontline/Irish Daily Mail 25

26. Main Use of Child Benefit
2011
2012
53% 53% 52% % %
50% Save Save
42%
Benefit Benefit
2011 2012
33% All 20 15
Recipients
Males 25 20
20%
15% Females 16 11
18-24s 28 26
25-34s 22 22
spend on spend on the use to pay put in 35-44s 17 11
groceries etc children bills savings
account 45-54s 18 15
Q. What do you do with your child benefit payments? 55+ 30 5
Base: all who receive child benefit
Source: Amárach Research, November 2011/12
RTE Frontline/Irish Daily Mail 26

27. The Budget & Child Benefit
2011
2012
% %
64% Means Means
63%
Test 2011 Test 2012
All 63 64
Recipients
Males 61 65
20%
16% 16% Females 64 63
13%
4% 18-24s 61 74
1% 2%
25-34s 70 59
Introduce decrease tax just like other No Cuts
means average other income 35-44s 69 69
testing amount 45-54s 50 57
55+ 43 74
Q. If cuts were to be made to child benefit payments in the
upcoming budget how would you prefer it was done?
Base: all who receive child benefit
Source: Amárach Research, November 2011/12
RTE Frontline/Irish Daily Mail 27

28. About Amárach
Amárach Research is an independent market
research agency, providing a full range of
research services to our Irish and international
clients. Amárach specialises in turning
information into insight; and insight into foresight.
Amárach’s experienced team of 30 directors and
executives manage online, face-to-face and cati
surveys (through our call centre); as well as
qualitative research including focus groups, in-
depths and ethnographic studies. We also
delivers a world class field-only service to
universities and international agencies.
Over nearly 25 years, Amárach has pioneered
innovative research techniques and reported on
Irish social, lifestyle and tech trends since the
1980s. Amárach invests heavily in understanding
current Irish consumer and business trends, and
shares numerous, free reports and presentations
via our blog and slideshare sites, linked via our
main website: www.amarach.com

29. Trends Report
Call us on 01 410 5200 to explore your path
to recovery and success through research:
Mark Nolan Managing Director
or Michael McLoughlin Chief Executive
or Gerard O’Neill Chairman
e. info@amarach.com
w. www.amarach.com
b. www.amarach.com/blog
t. twitter.com/AmarachResearch