Poverty dividing Ireland says agency

The Government needs to develop "pro-poor growth strategies" if it wants to reverse inequality and reduce social exclusion in Irish society, according to the Combat Poverty Agency.

In its annual report, published yesterday, the statutory agency - set up to advise the Government on poverty issues and to support anti-poverty measures - said Ireland had become "a very divided society with a growing polarisation in income distribution".

The agency's director Ms Helen Johnston said the evidence showed "we have been very successful economically, but we have been less successful at eliminating poverty in our society."

She cited recent figures showing Ireland had the greatest proportion of people living at risk of poverty in the EU, saying this was "a matter of serious concern".

The Minister for Social and Family Affairs, Ms Coughlan, rejected the criticism however, claiming the Government had concentrated on those "in poverty" rather than those at risk of poverty. The widening gap between the two groups was "the culmination of good Government policies," she remarked.

"Because so many people have become employed people have got out of poverty. But the consequential gap is there, and this is an issue which we will be addressing."

Speaking at the publication of the report at the Carmelite Community Centre on Dublin's Aungier Street, Ms Coughlan also defended the controversial reform of the rent supplement introduced in last year's Estimates.

Rejecting the findings of a Centrecare study into the impact of the reforms, she said: "The report of the social partners is much more substantial, and it stands up . . . All of those in the social partners who were very involved, and equally were critical of the measures, have now come to the view that this is the best way forward."

But Ms Johnston remained critical of the reforms, saying they had impacted "very severely on people who are at high risk". While she said she agreed in principle that change was necessary to remove a poverty trap, the manner in which the "cuts" were introduced "saved a relatively small amount of money for quite a large impact".

The Combat Poverty Agency is seeking in the Budget a €10-€15 flat-rate increase in the weekly unemployment benefit of €134.80. It also wants an extension of the school meal system, greater access to medical cards for low-income households, and improved healthcare, housing and childcare supports.

The Government had to ensure that employment was not "putting people in poverty," said Ms Johnston. "At the moment, people lose benefits when they take up work. There have been some transitional arrangements put in place to make that less severe, but we need to look at improving that."

Ms Coughlan said the Government had increased social welfare benefits above the rate of inflation last year, "and it would be our intention to continue that, if not add to it substantially."