Progress on poverty reduction stalls

Progress on reducing poverty has stalled in the past year, and a minimum essential standard of living remains out of reach for many Irish households, a new report suggests.

According to the study by the Vincentian Partnership for Social Justice (VPSJ), lone female pensioners, young men and households with teenagers are particularly vulnerable to poverty.

The authors acknowledge significant improvements in living standards over the past two years, due to increases in social welfare payments and the minimum wage. But they also indicate that progress had stalled due to smaller social welfare increases in last year’s Budget, and the erosion of their value by inflation.

The study looked at 27 households in six broad categories and found that in 2006 a minimum essential lifestyle was possible for only nine of the households. This rose to 15 in the following year and remained at 15 for 2008.

“While we recognise that progress has been made in the reduction of poverty we are very conscious of the enormous financial burden which continues to oppress many low income families and social welfare recipients,” said Sr Bernadette MacMahon, director of the VPSJ.

The report identifies three groups who are particularly vulnerable to poverty. For lone pensioners, a weekly shortfall between income and the expenditure required for a minimum standard of living ranged between €32.26 and €41.87.

The second category is households with adolescent children, which were found to spend about €88 more a week on essentials than households with younger children.

Young men also fare poorly. A single man in private bed-sit accommodation would need to work about 46.5 hours a week on the minimum wage to afford a minimum standard of living.

The VPSJ makes a number of recommendations. Social welfare payments need to be maintained ahead of inflation, it argues, and the national minimum wage must keep pace with rising prices. Child benefit should also be adjusted to take account of the increased costs associated with adolescents.