Written answers

Tuesday, 20 June 2006

Department of Social and Family Affairs

Child Poverty

10:00 pm

Photo of Michael RingMichael Ring (Mayo, Fine Gael)
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Question 66: To ask the Minister for Social and Family Affairs the data on child poverty here; and if he will make a statement on the matter. [23104/06]

Photo of Liz McManusLiz McManus (Wicklow, Labour)
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Question 84: To ask the Minister for Social and Family Affairs if he will provide an estimate of the number of children here who currently live in a state of poverty; the efforts he is making to address the fact that 65,000 children here live in a state of consistent poverty; and if he will make a statement on the matter. [22985/06]

Photo of Olwyn EnrightOlwyn Enright (Laois-Offaly, Fine Gael)
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Question 93: To ask the Minister for Social and Family Affairs the progress to date on the eradication of consistent poverty; and if he will make a statement on the matter. [23095/06]

Photo of Séamus BrennanSéamus Brennan (Dublin South, Fianna Fail)
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I propose to take Questions Nos. 66, 84 and 93 together.

The EU Survey on Income and Living Conditions (EU-SILC), which commenced in Ireland in 2003, is conducted annually by the Central Statistics Office and collects information on poverty, deprivation and social exclusion. The results of the most recent survey, announced in December 2005, show continuing positive trends in relation to poverty and social exclusion, and 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', whose income falls below the 60 per cent median income threshold, from 19.7 per cent in 2003 to 19.4 per cent in 2004. These figures are beginning to reflect the impact of the continuing high level of resources being devoted to supporting those at risk of poverty and suggest that the numbers in that category may have peaked and are beginning to decline.

It should be noted that those below the 60 per cent of median income threshold are categorised as being 'at risk of poverty', but many may not actually 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. Those experiencing poverty as generally understood are said to be in consistent poverty and the numbers in that category are also identified by EU-SILC.

The most recent EU-SILC survey also found that there has been a significant reduction in the consistent poverty rate. This is calculated by identifying from among those in the 'at risk of poverty' category persons who are also deprived of basic goods and services regarded as essential for living in Ireland today. This percentage reduced from 8.8 per cent in 2003 to 6.8 per cent in2004.

With regard to data on child poverty, the EU-SILC survey reported that in 2004 9.5 per cent of persons under the age of 15 were in consistent poverty, a reduction from the 2003 figure of 12.2 per cent. There was a slight rise in the numbers of persons under the age of 15 at risk of poverty from 21.0 per cent in 2003 to 21.2 per cent in 2004. Some 100,000 children have been lifted out of deprivation in the last decade as a result of targeted measures and supports. It is estimated that some 65,000 children remain in consistent poverty and moving these children out of poverty remains my priority.

It may also be important to note trends over a longer period which have caused some confusion. When making comparisons with previous trends, it is necessary to refer to EU-SILC's predecessor, the Living in Ireland Survey (LIIS), which was conducted by the Economic and Social Research Institute (ESRI) between 1994 and 2001. While the 'at risk of poverty' rates between the two surveys are broadly comparable this is not the case with the consistent poverty measure. The CSO and the ESRI attributed the increase recorded in consistent poverty between 2001 and 2003 to methodological differences between the EU-SILC and LIIS surveys. Accordingly, it was not possible to draw any conclusions on how consistent poverty actually changed in this period. There is no evidence that the actual level of consistent poverty would have increased during these years, as there were no policy changes that would have reversed the earlier downward trends. On the contrary, significant improvements in social welfare rates and in other services had been made in the intervening period and the EU-SILC results for 2004 now suggest that the downward trend recorded in the LIIS continues.

The main indicators show that significant progress had been made in the last decade in tackling poverty and specifically child poverty. Much of child poverty is related to the position of the households where children live. The major reduction in unemployment and, in particular, long term unemployment, the significant increases in employment participation resulting in the growth in two income households and the huge improvements in real terms in social welfare payments and related services have greatly helped to improve the position not only of adults but also of their children.

The National Action Plan against Poverty and Social Exclusion (NAP/inclusion) is a key instrument in that regard. A review of implementation of the plan, undertaken in June 2005, found that some 51 of its 58 targets and commitments had either been met or were in the process of being met. A new plan which will significantly build on the progress being made, covering the two year period from 2006 to 2008, is currently being prepared.

The surveys and indicators also show that the families with children most at risk of poverty are large families and those headed by lone parents. Many of these families have not been able to avail of the greatly increased employment opportunities and the related higher incomes that accrue from employment. A range of reforms and increased welfare supports, child-centered services and child care are addressing these problems. These include: radical reforms of the schemes for lone parents and the qualified adults of social welfare beneficiaries, payment of the €1,000 a year early childcare supplement for all children under 6 years, increases in welfare supports and entitlements in real terms; and the creation of additional childcare places.

These measures are part of a wider programme being prepared to support children to apply over the next 10 years, which is among the most ambitious ever undertaken in the State. A key priority for the Government is to make a decisive impact on child poverty by ensuring that the position of children who are vulnerable to poverty receives special support under this programme consistent with their needs.

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