Figures show fall in poverty due to welfare

Social welfare increases helped to bring about a reduction in the number of people at risk of poverty last year, new official…

Social welfare increases helped to bring about a reduction in the number of people at risk of poverty last year, new official figures show.

A report by the Central Statistics Office (CSO) shows that the proportion of the population at risk of poverty in 2006 fell from 18.5 per cent to 17 per cent, or 680,000 people.

Those most at risk of poverty were in households headed by someone who was unemployed, ill or disabled or a lone parent. However, almost one-third of households were headed by someone in employment, a category known as the "working poor".

A further fall in poverty rates is expected in official figures for 2007 as a result of social welfare and pension increases introduced following last year's budget.

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However, Ireland is still one of the least impressive performers in the EU when compared to the rate of poverty in other member states. Only Lithuania and Poland have a higher at risk of poverty rate (21 per cent).

At risk of poverty measures the share of people whose weekly income is below €202 a week. Consistent poverty measures the number of people at risk of poverty who are also experiencing enforced deprivation, such as going without heating or being unable to afford new clothes.

Yesterday's figures show there was no significant change with almost 7 per cent, or 276,000 people, experiencing consistent poverty last year. The only main groups to show a rise in consistent poverty were children and lone parents.

The Government yesterday welcomed the overall reductions in poverty which, it said, were evidence of its commitment to tackle social exclusion.

Minister of State for older people Máire Hoctor said a key factor was the increase in the State pension, which had risen by one-third over the last four years.

The Labour Party, however, said the situation for children and single parent families was much bleaker. "A staggering one-in-three single-parent families are now living in consistent poverty and as a result, thousands of children in these families are going hungry and cold," said Labour TD Róisín Shortall.

Fr Seán Healy of Cori Justice said the reduction in poverty vindicated his organisation's long-running campaign to benchmark the lowest social welfare rates at 30 per cent of gross average industrial earnings.

"We strongly urge the Government to continue to benchmark the lowest social welfare rate at this level in next week's Budget," he said. "Without social welfare payments, some 40 per cent of the population would have been at risk of poverty."

Carl O'Brien

Carl O'Brien

Carl O'Brien is Education Editor of The Irish Times. He was previously chief reporter and social affairs correspondent