Joan Burton (Dublin West, Labour) | Oireachtas source

The at-risk-of-poverty rate is one of a number of indicators used to measure different aspects of poverty. It captures those on low net incomes, but on its own gives only a partial picture of poverty. The official measure of poverty in Ireland is consistent poverty, which measures individuals who are both at risk of poverty and experiencing basic deprivation.

Despite the economic crisis, the at-risk of poverty rate was lower in 2011, at 16%, than in 2007, when it was 16.5%. The Department is awaiting publication of the latest poverty figures from the 2012 CSO survey of income and living conditions, known as the SILC survey. It is a pity that, by and large, the data are only available a full year or more in arrears. A key determinant of the at-risk of poverty rate is the impact of social transfers. In this regard, the Department recently published a study by the ESRI analysing the role of social transfers in poverty alleviation. The study compares the at-risk of poverty rate before and after social transfers and has found that in 2011 the at-risk of poverty rate reduced from 55% to 16%. In other words, if we did not have a strong social welfare system and a strong level of payments, 55% of people would be at risk of poverty rather than 16%. These social transfers lifted almost 40% of the population out of poverty. This applies to pensioners, in particular. This reflects the continuation of substantial State investment in the social protection system, despite the constraints of the economic crisis. A key element of this investment has been the maintenance of core weekly rates of welfare payments since the Government took office. Deputy Willie O'Dea will know that in his party's time the weekly rate was reduced by €16.40 for everyone, except pensioners.

Last Friday I published a social impact analysis of the main welfare and tax changes to take effect in 2014. This analysis has found no significant change in the at-risk of poverty rate as a result of these measures, thereby confirming the ongoing role of social transfers during the recession. The analysis is available to download from the Department's website. The Government’s objective is to reduce the rate of consistent poverty to 4% by 2016 and t2% or lower by 2020. That is the objective of the programme for Government.

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