Written answers

Thursday, 9 February 2017

Department of Social Protection

Poverty Impact Assessment

Photo of John BradyJohn Brady (Wicklow, Sinn Fein)
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136. To ask the Minister for Social Protection the actions he will take in response to the survey on income and living conditions 2015 figures released recently, specifically the fact that 750,000 persons are living on a weekly income of less than €230; and if he will make a statement on the matter. [6429/17]

Photo of Leo VaradkarLeo Varadkar (Dublin West, Fine Gael)
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The latest CSO Survey on Income and Living Conditions for 2015 shows that the at-risk-of-poverty threshold – 60% of the median income for all households – in 2015 was €230 per week for a single person, compared with €217 in 2014. This reflects the rise in real median disposable income of 6.2% in 2015, driven by employment growth and the safeguarding of social welfare payments.

The Government’s strategy for addressing poverty and social exclusion is set out in the National Action Plan for Social Inclusion. The Plan identifies a wide range of targeted actions and interventions to achieve the overall objective of reducing consistent poverty. The Department will review the Plan this year, as it reaches the end of its current term, with a view to developing an updated plan for future periods. The Department will also review the national social target for poverty reduction. This review will be undertaken in consultation with relevant stakeholders.

Income supports will continue to play an important role in addressing social exclusion and income inequality. During 2017, more than 840,000 people will benefit from the first increase in weekly payments for working-age adults since 2009. Using Eurostat data for 2015, social transfers (excluding pensions) reduced the at-risk-of-poverty rate in Ireland from 36.2% to 16.3%, thereby lifting a fifth of the population out of income poverty. This represents a poverty reduction effect at 55%, far in excess of the EU norm of 33.5%. Ireland is the best performing EU member state in reducing poverty through social transfers.

Income support is only one aspect of the whole-of-government policy response to addressing poverty. The other components are inclusive labour markets and access to quality services. Growing employment and providing access to the labour market is important for tackling poverty, particularly in welfare-dependent households. The Pathways to Work 2016 - 2020 Strategy focuses on ensuring jobseekers can access good quality work, training and education opportunities. It continues to prioritise the activation of the long-term and young unemployed people, with supports provided through the network of Intreo offices.

Recent budgets have been forward looking, allocating limited resources in a prudent way, to make sure that everyone benefits from the recovery. The focus of these budgets has also been on the provision of services rather than simply on income supports (e.g. extension of the School Meals Scheme and the Single Affordable Childcare Scheme).

More broadly, the updated National Action Plan for Social Inclusion reflects the multi-dimensional nature of poverty. The policy goals include a focus on early childhood development, youth exclusion, access to the labour market including measures for people with disabilities, migrant integration, social housing and affordable energy.

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