OCU pleads with Spanish government to take measures against dramatic decline in prosperity

by Lorraine Williamson
dramatic decline in disposable income


Research has shown that Spanish households have become 10% poorer in the last three years. With all the consequences that entails, especially for low-income families.  The Spanish Consumer Organisation (OCU) has asked the government to make “urgent” changes. These are the areas of housing, food and energy. 

The decline is dramatic, according to the OCU. The consumer price index (CPI) has risen by 16.1%. On the other hand, there is an average salary increase of about 6.1%. Spending on housing, food, transportation, and leisure increased the most since 2021. 

These are the measures OCU proposes 

The consumer organisation now wants  the government to take measures in the above areas. First of all, in the area of housing. For example, OCU believes that the government should make it easier for households with variable mortgages to switch to a fixed mortgage. This can be done by reintroducing the exemption from cancellation fees. The organisation is also advocating for the government to promote public rental of social housing. In addition, OCU wants the income limit to be raised, and that families with an income of less than €27,000 receive an extra €200.  

Furthermore, the OCU wants the reduction in taxes on electricity and gas to be extended beyond June. Moreover, this can result in savings of €370 per year for an average household.” 

Cogesa Expats

Increase in costs per family without children 

A couple without children saw the cost of food increase by €105 per month. They pay €52 more for the car and transport, and €65 more for leisure activities. Their monthly bill for clothing and footwear only increased by €5. They spend €8 more on household items, €10 more on maintenance and supplies for homes. 

Variable mortgage costs 

Families with a variable mortgage have been paying 30% more for the past three years. However, they are not counted as such in the CPI. This means that a “family with a good income, with two school-age children and an average inflation rate of 21.6%, is 15.5% poorer. The increase in administrative expenditure has been taken into account. 

Low-income families 

Low-income families are also affected. They live from day to day and cannot save. The 10% loss of purchasing power means that they are unable to pay a bill on time. Or to pay for basic necessities. Hence the need to take measures according to OCU. 

Also read: Higher educated at risk of poverty

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