Willie Penrose (Westmeath, Labour)
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Question 22: To ask the Minister for Social and Family Affairs if his attention has been drawn to the EU survey on income and living conditions published by the Central Statistics Office on 12 December 2005 which showed that almost one in five of the population was at risk of poverty and that almost one third of persons in lone parent households were in consistent poverty; the steps he intends to take to deal with this situation and reduce the unacceptable level of poverty; and if he will make a statement on the matter. [4696/06]

Séamus Brennan (Dublin South, Fianna Fail)
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The EU survey on income and living conditions, EU-SILC, which commenced in Ireland in June 2003, is an annual survey that provides information on poverty, deprivation and social exclusion. The most recent results, announced on 12 December 2005, record continuing positive trends in relation to poverty and social exclusion, and show the impact being made by the greatly increased resources now devoted to social welfare and other social services.

Results from the first two years of EU-SILC show that there has been a slight decrease in the percentage of persons at risk of poverty, based on the proportion of the population below an income threshold of 60% of median income, from 19.7% in 2003 to 19.4% in 2004. These figures represent a halting of the upward trend of previous years in the numbers in the broad category of "at risk of poverty", which reflect the impact of real improvements in employment and social provision over the past number of years. The significant shifts from unemployment into employment have been an important factor in moving persons away from the risk of poverty. Real increases in social welfare levels with the lowest social welfare rates being increased by 40% between 2001 and 2005, while the consumer price index increased by just over 13% in the same period, have also been a major factor.

It should be noted that those below the 60% of median income threshold are categorised as being "at risk of poverty" but many may not be in poverty as generally understood. That depends on other factors such as the extent to which their income is below the threshold, the length of time they have been living on a low income, the degree to which their assets will have run down while on a low income, and the other resources they have at their disposal.

For example, Table 4 of EU-SILC shows that older people, aged 65 plus, have an "at risk of poverty" rate of 27%, higher than for the other age groups. However, the proportion of older people with an income of over 50% of the median income is, at 8.2%, almost 20% less than the percentage at the 60% threshold and lower than for the other age groups. It shows that the incomes of many older people, categorised as being "at risk of poverty", are close to the 60% of median income threshold. This reality is reflected further when measured in terms of consistent poverty, for which older people record the lowest rate at 3.3%. This illustrates the real progress being made in providing for older people who, as Table 4 of EU-SILC also shows, represent the highest proportion of any age group reliant on social transfers, such as pensions, to overcome poverty.

Another important outcome highlighted by the survey is the significant reduction in the consistent poverty rate from 8.8% in 2003 to 6.8% in 2004. The consistent poverty measure is used in this country to identify those experiencing basic deprivation. This is calculated by identifying from among people at risk of poverty, that is, with incomes below the 60% median income threshold, those who are also deprived of basic goods and services regarded as essential for living in Ireland today. There was a slight but significant downward trend in the consistent poverty rate for lone parents from 33.6% in 2003 to 31.1% in 2004, which if continued at that rate, could result in a significant improvement in the living standards of one of the more vulnerable groups in our society and their children over the coming years.

It is generally accepted that for all people in working age households, the main route out of poverty is through employment. Employment participation among lone parents in this country is among the lowest among OECD countries. This outcome occurs despite the huge growth in job opportunities in recent years, increased female participation in the workforce and the income disregards afforded to lone parents who take up employment under my Department's one-parent family payment.

One of the key tasks in the ending child poverty initiative under Sustaining Progress is to address obstacles to employment for lone parents. The Senior Officials Group on Social Inclusion was mandated late in 2004 to examine this issue and report back to the Cabinet Committee on Social Inclusion with specific proposals.

As part of this work, a group was established in my Department to review the income support arrangements for lone parents. The Cabinet has approved the reports of both working groups and they will be published in the near future. This will be followed by a consultation process in which, in particular, lone parents and the organisations representing them will be invited to participate.

It is my intention following these reviews, and building on initiatives already in place, to bring forward proposals designed to ensure that lone parents have the support to make the same choices as people in their situation have in other countries, particularly in terms of educational opportunities, employment and achieving improved living standards, and, overall, a better future for themselves and their children.