Aengus Ó Snodaigh (Dublin South Central, Sinn Fein)
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37. To ask the Minister for Social Protection her views on the sharp rise in severe material deprivation recorded here since 2007; the likely consequences of the changes to social transfers introduced by the latest budget for the prevalence and depth of poverty. [43362/13]

Joan Burton (Dublin West, Labour)
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The national social target for poverty reduction is to reduce consistent poverty to 4 per cent by 2016 and to 2 per cent or less by 2020, from a 2010 baseline rate of 6.3 per cent. Reducing and ultimately eliminating poverty remains a fundamental aspiration of Irish society and is a commitment of the Government. One component of consistent poverty is basic deprivation, which is the enforced lack of two or more items from a list of 11 basic goods and services due to a lack of income. The list includes items such as two pairs of strong shoes; a warm waterproof overcoat, keeping the home adequately warm and a meal with meat, chicken or fish (vegetarian equivalent) every second day. The indicator was developed by the Economic and Social Research Institute as a way of capturing the lack of resources in the population. It is a component of the consistent poverty indicator used for the national social target for poverty reduction.

The CSO Survey on Income and Living Conditions (SILC) is the official data source for national poverty indicators and household and individual income. It found that in 2007 the rate of basic deprivation was 11.8 per cent. The rate doubled to reach 24.5 per cent in 2011. The increase in basic deprivation highlights the continuing impact of the economic crisis on household living standards, due to higher unemployment and a fall in incomes.

Social transfers play a key role in reducing poverty and basic deprivation. The effectiveness of social transfers in reducing poverty can be measured by comparing the at-risk-of poverty rate before and after social transfers. In 2007, social transfers (excluding pensions) reduced the at-risk-of-poverty rate from 33 per cent to 16.5 per cent, representing a poverty reduction effect of 50 per cent (rising to 60 per cent if pensions are included). This increased by 10 percentage points to a 60 per cent poverty reduction effect in 2011. Including pensions, the poverty reduction effect went from 60 per cent in 2007 to 68 per cent in 2011, an increase of 8 percentage points. The strong performance of social transfers over the period underlines the crucial importance of social welfare in protecting the most vulnerable people during the economic crisis. Using data from Eurostat from 2011, Ireland’s performance in reducing poverty is far in excess of the EU-27 norm of 35.7 per cent, and even more so the 29 per cent reduction achieved in countries which are worst affected by the crisis.

The Department undertakes a social impact assessment of the main welfare and direct tax measures in the Budget. The main finding of the assessment of Budget 2013 was that it led to no significant change in the at-risk-of-poverty rate, including the at-risk-of-poverty rate for children, and that the strong poverty reduction performance of social transfers was maintained. I will publish the assessment of the 2014 Budget in due course.