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Poverty


Over the past few years Social Justice Ireland has developed its ability to track the distributive impact of annual Budgets on households across Irish society. Our analysis tracks changes from year to year (pre and post each Budget) and across a number of recent years.  As different policy priorities can be articulated for each Budget, it is useful to bring together the cumulative effect of policy changes on various household types.


Ireland is among the signatories of the recent Joint Declaration by the Ministers of the EPSCO Council ‘Overcoming poverty and social exclusion – mitigating the impact of COVID-19 on families – working together to develop prospects for strong children’. If Government is truly committed to the stated objectives of the joint declaration then significant resources and serious political and policy commitment to addressing child and family poverty are required.

A poverty premium is the extra cost that low income households face when paying for the same goods, services and amenities as wealthier households. A Report commissioned by the U.K. charities Fair by Design and Turn2us, undertaken by the University of Bristol, and published in November 2020 found that low income households paid an extra £478 a year in poverty premiums in 2019.

The intergenerational reach of poverty and disadvantage is the topic of a recent release from the CSO (16th December 2020). This release found that those who had experienced financial or educational disadvantage in their teens (that is, having grown up in disadvantaged households) were more likely to be at risk of poverty or experiencing enforced deprivation than their wealthier peers.

'Building a New Social Contract – Policy Recommendations’ contains more than eighty specific policy recommendations that would go a considerable direction towards a new social contract to improve the quality of life and wellbeing of everyone and ensure that a no-one is left behind as our economy and society recovers from the impact of Covid-19.

The European Court of Auditors has just published a special report on child poverty in the EU entitled 'Combating child poverty – Better targeting of Commission support required'.  The report finds that child poverty remains a serious issue in the EU, and unfortunately, child poverty is likely to become even more prevalent in the aftermath of the ongoing COVID-19 crisis.  The report recommends that the European Commission target and monitor investment in tackling child poverty, particularly in the period of the new budget period 2021-2027.

The National Economic Plan - to be published on Budget day - must give equal weight to environmental, social and economic considerations. Otherwise, this Government will simply repeat the mistakes of the past and many will be left behind.  The National Economic Plan must be underpinned by a new social contract that treats our environment, society and economy equally


The deprivation figures published by the CSO show that almost 900,000 people still struggle to achieve a basic standard of living. The yearly increase was more than 140,000, and the fact that deprivation is increasing for almost every socio-demographic group is of real concern. 


The jobs crisis precipitated by the Covid-19 health crisis looks set to be felt for years to come, with a recovery not expected until after 2021.  There is a real danger that this jobs crisis will lead to an increase in poverty and exacerbate existing inequalities.  The plan for Resilience and Recovery, the National Economic Plan and Budget 2021 must ensure that the jobs crisis we currently face does not turn into a social crisis. 


Government should increase in core social welfare rates of €7 per week in Budget 2021 and set a three-year target for Government to reach the benchmark of 27.5 per cent of average earnings.  In the forthcoming Budget Government should also complete the equalisation of Jobseeker’s rates for young people under 26, introduce a cost of disability allowance and introduce a universal state pension.

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