Middle incomes households have more to spend, despite inflation

Most households in the Netherlands had more money left over to spend in 2023 than before the coronavirus pandemic despite the sharp rise in prices in the years between, according to new research from economic forecasting agency CPB.

While fixed and necessary expenses did become more expensive between 2019 and 2023, middle incomes rose even faster, the CPB said. The average household spent €23,000 on housing, utilities and other essentials in 2023, compared to €21,000 in 2019.

At the same time, the average disposable income increased by €10,000 to €55,000, largely because of rising wages, the government agency said.

Government measures in 2022 and 2023 to offset rising energy prices also helped keep costs under control. Every household received €380, and additional support was offered to those on or around the social minimum.

As a result, fixed and essential costs barely rose in 2022 and 2023, despite high inflation, the CPB said.

The definition of middle incomes used in the study includes most Dutch households, with an annual disposable income between €21,000 and €70,000 in 2023. Fixed expenses include housing, mortgages and subscriptions, while necessary expenses cover essential but adjustable costs such as groceries.

On Monday, the national food bank association said the number of clients picking up free groceries at the 180 locations nationwide fell by 20% last year, and that this was probably due to continuing high levels of employment, an increase in social security benefits and the rise in the minimum wage.

In total, 144,750 people were helped by a food bank in 2024, of whom 15% were under the age of 18.