Social Justice Ireland: Poverty Focus 2021

Social Justice Ireland published Poverty Focus, an annual document that provides an update on the latest data and trends relating to poverty in Ireland such as how poverty is measured, updated values of the annual poverty line and a profile of the groups in our society who have the highest exposure to living life on the poverty line. Every year it highlights a particular area of concern.

This year’s particular focus is given to how increases to welfare payments and supports have reduced the headline poverty risk measure. COVID-19 has seen challenges such as lockdown measures, temporary layoffs and the need for emergency state income supports, that have introduced many individuals and families, who previously may not have been exposed to the realities and uncertainties of living on a low income.

Poverty and How it is Measured
The most common approach in measuring poverty is to identify poverty lines based on people’s disposable income. The Central Statistics Office suggests a poverty line of 60% of median income. In 2019, this poverty line was €275.73 a week. Updating that to 2021 levels, the relative income poverty line is at €286.48 for a single adult in Ireland.

Welfare Key to Recent Poverty Fall
Social Justice Ireland’s analysis of the budgetary policy for period from 2017-2021 indicates that all household types experienced an increase in their disposable income. Among employed households, the gains flowed to the those with the highest incomes and unemployed households the gains ranged from €16.19 per week for single individuals and €43.55 for couples with 2 children. The larger gains experienced by welfare households is, in the main, the reason why levels of poverty and income inequality have fallen in recent years. This a welcome development, however, analysis shows that the last two Budgets have shifted away from this policy approach, which may undo much of the progress that has been achieved to date.

Policy Priorities to Reduce Poverty

Poverty Focus 2021 outlines the following measures that Government and policymakers should implement through future budgets if poverty rates are to fall:

• Increase in social welfare payments;
• Equity of social welfare rates;
• Adequate payments for children;
• Refundable tax credits;
• Decent rates of pay for low paid workers;
• A universal state pension;
• A cost of disability payment.

Child Poverty

The fact that in 2019 the number of children that lived in households experiencing poverty was 190,000 is alarming. Social Justice Ireland reports that the issue child poverty is one of low-income families and therefore can be addressed by policy solutions assuring adequate adult welfare rates and decent rates of pay and conditions for working parents. Child benefit is also key to tackling child poverty as well as being an important component in any strategy to improve equality and childcare.

Ireland has higher rates of child poverty than the EU average. The soon to be formalised European Union (EU) Child Guarantee states that every child in Europe should have access to free healthcare, free childcare, decent housing and adequate nutrition with a primary focus on disadvantaged children, including those experiencing poverty. With rates of child poverty on the high end of the European scale, Ireland can no longer afford to lag at the bottom of the table in terms of its investment into Childcare when it is accepted as a key lever in reducing child poverty.

Early Childhood Ireland will be advocating for increased investment in Childcare for Budget 2022 in the coming months and we will keep members up to date about any developments. If you would like to share your views about what is important for Budget 2022 or the Social Justice Ireland report, please email us.