Tuesday, 30 June 2020
Department of Finance
67. To ask the Minister for Finance the rates of relative and absolute poverty; the rates of relative and absolute poverty in 2005, 2010 and 2015, respectively; and if he will make a statement on the matter. [13398/20]
I propose to take Questions Nos. 65 to 67, inclusive, together.
My Department monitors trends in household income on an ongoing basis. Information in respect of these trends is captured in the annual Survey on Income and Living Conditions (SILC) produced by the Central Statistics Office (CSO).The most recent 2018 SILC data indicates that the median household disposable income was €42,183, while the mean household disposable income was €50,640.
In response to the Deputy’s query concerning the percentage of households that have higher incomes and assets compared to 2005, I am advised by the CSO that SILC data cannot precisely identify the income of the same cohort of households as in 2005. I am further advised by the CSO that information on asset holdings contained in the Household Finance and Consumption Survey (HFCF) does not pre-date 2013. Therefore it is not possible to identify the assets held by households in 2005 and compare those to household assets held in 2018.
With regards to the poverty indicators that the Deputy has requested, these are also available through the published SILC data. SILC produces three metrics for measuring poverty. Those ‘at risk’ of poverty, are identified as those living below 60% of median equivalised disposable income. In this instance, the equivalised disposable income refers to the total disposable income of each household divided by the equivalised household size. This may also be referred to as relative poverty.
On the other hand, the measurement for ‘enforced deprivation’ refers to households that are considered to be deprived because they cannot afford two or more of the eleven goods and services which are considered to be the norm for other people in society. This is a measurement for absolute poverty.
Furthermore, the ‘consistent poverty’ rate measures those who are both ‘at risk’ of poverty and experiencing ‘enforced deprivation'. The data for 2005, 2010, and 2015 as requested are provided in the table below. The ‘at risk’ of poverty rate and the ‘consistent poverty’ rate both declined from 2005 to 2010, while the ‘deprivation rate’ increased in that time period. The impact of the economic crisis is evident in the rise in all three metrics between 2010 and 2015.
Table - Income and Poverty Rates, statistical indicator and Year
|At Risk of Poverty Rate (%)||18.3||14.7||16.3|
|Deprivation Rate (%)||14.8||22.6||25.4|
|Consistent Poverty Rate (%)||7||6.3||8.5|