Monitoring Poverty Trends in Ireland 2004-2007

Minister Carey launches new ESRI Report "Monitoring Poverty Trends in Ireland 2004-2007: Key Issues for Children, People of Working Age and Older People."

Today (7/09/10), Pat Carey T.D, Minister for Community, Equality and Gaeltacht Affairs launched the ESRI publication Monitoring Poverty Trends in Ireland 2004-2007: Key Issues for Children, People of Working Age and Older People. Minister Carey welcomed the report by Helen Russell (ESRI), Bertrand Maître (ESRI) and Brian Nolan (UCD) and said that it would inform the Government's thinking in the lead up to Budget 2011. The study monitors the evolution of poverty in Ireland from 2004 to 2007. The period marks the end of the first ten year National Anti-Poverty Strategy (NAPS) in Ireland which ran from 1997 to 2007, and the beginning of the National Action Plan for Social Inclusion 2007 to 2016. This period coincided with the final stages of the economic boom in Ireland and while tangible progress was made, the results show that poverty remained a very real issue for many households. The study identifies the groups who were vulnerable at the onset of recession and highlights the longer term processes that underlie poverty risks. Some key findings from the report: Among the total population •A decline in the “at risk of poverty” rate, which is the proportion of individuals falling below the poverty line set at 60% of median income, from 19% in 2004 to 16% in 2007. •A decline in the consistent poverty rate, which combines income poverty and the enforced absence of at least two items from an eleven item deprivation scale, from 7% in 2004 to 5% in 2007. •The rate of decline in poverty was lower than that anticipated by the targets set by NAPS. Among Children •A small decline in the “at risk of poverty” rate from 23% in 2004 to 20% in 2007. A decline in the consistent poverty rate from 9% in 2004 to 7% in 2007. •The decline in poverty was particularly pronounced for young children aged less than five years of age, children in large families with 3 or more children, and those in lone parent families. These changes are attributed to increases in cash transfers to parents through child benefits and Early Childcare Supplement, and increasing employment rates among parents of young children. •Child poverty became increasingly concentrated among lone parent families over the period: in 2004, children in lone parent families accounted for 53% of children in consistent poverty, while in 2007, 65% of children in consistent poverty were in such families. Among the working age population •A small decline in the “at risk of poverty” rate from 17% in 2004 to 15% in 2007 and in the consistent poverty rate from 6% in 2004 to 5% in 2007. •Poverty among those of working age is strongly linked to employment status, in particular long term unemployment and household joblessness. Poverty risks for this group are also influenced by household composition (lone parenthood, or living alone). Among older people •Those aged over 65 experienced the largest decline in poverty risks over the period. The “at risk of poverty” rate went from 27% in 2004 to 16% in 2007 and the consistent poverty rate went from 4% in 2004 to 2% in 2007. •Improvements in the levels of contributory and non-contributory pensions contributed significantly to the reduction in poverty, particularly income poverty for this group. •Older people living alone constitute the most vulnerable group among older people. In 2007 they were twice as likely to experience income poverty (24%) as those living with a partner (13%). In contrast, gender inequality in poverty narrowed for older people over the period 2004-2007 . Launching the report Minister Carey said:  “This report shows that Government intervention through social policy works. It shows that social equality or inequity is no accident or mere consequence of economic conditions. In good times and bad social equity can be driven by Government policy and this report reminds us of that fact. It is a timely reminder and raises important policy issues for consideration by Government as we face into Budget 2011 when more tough choices will be needed in order to secure our future economic prosperity. This report will inform those choices and contains much food for thought.” Minister Carey added that protecting those who are most vulnerable is a priority consideration for the Government. He said: “The success of our economic recovery will not be judged exclusively by our ability to return to economic growth and fiscal stability; it will also be judged by our capacity to emerge from our current problems as a more just, socially inclusive and equitable society.”

Note to Editors: 1. Monitoring Poverty Trends in Ireland 2004-2007: Key issues for Children, People of Working Age and Older People by Helen Russell (ESRI), Bertrand Maître (ESRI) and Brian Nolan (UCD) will be published by the ESRI on Tuesday 07 September 2010.

The full report will be available to download from the ESRI website at www.esri.ie. 2. The study was funded by the Social Inclusion Division of the Department of Community, Equality and Gaeltacht Affairs. 3. Minister Pat Carey will launch the report at Government Buildings (Upper Merrion Street, Dublin 2) on Tuesday 07 September 2010 at 9:15 am. Members of the media are invited to attend the launch and press briefing at the Press Centre.