Some good news from CSO but one-in-six remain at risk of poverty

It probably does not come as a surprise to those with very little in their wallets or purses that Ireland continues to rank among the most expensive countries in the EU.

The annual CSO data round-up, Measuring Ireland's Progress 2013, which provides comparative data for a number of EU countries, found that Ireland experienced the lowest inflation increase in the previous four years.

Despite this, though, Ireland ranked fifth out of 28 EU countries that Eurostat compared prices in 2013.

And, as usual, the indicators are that those who struggling most are also most impacted by high price levels.

The figures tell us that Ireland is taking steps to protect its most vulnerable – before State interventions, such as pensions and social welfare payments are factored in, more than half of Ireland’s population are deemed at-risk of poverty.

Thanks to social transfers (the most common of which are pensions, jobseekers allowance and jobseekers' benefit) the at-risk of poverty rate is significantly lessened – it stood at 15.7 per cent in 2012, below the EU average of 16.9 per cent and well away from the 23.1 per cent rate experienced in Greece in the same year.

Risk of poverty

But while the good news is the State is providing a safety net for many in our society, it is still the case that one-in-six Irish people remained at risk of poverty in 2013.

Even more worrying is the consistent poverty rate, which actually increased from 7.7 per cent in 2012 to 8.2 per cent 2013.

Consistent poverty is defined as affecting those whose disposable income is below 60 per cent of the national median (after social transfers) and who experience at least two basic deprivation indicators such as the inability to afford heating or not being able to afford to buy a warm waterproof coat.

A person’s risk of consistent poverty depended on age with children the worst affected: just under one in eight, or 11.7 per cent, of under-18s were in consistent poverty in Ireland in 2013, up from 9.9 per cent a year earlier.

The composition of a household also had a major impact: consistent poverty affected almost a quarter (23 per cent) of single-parent households while one in seven (14.5 per cent) of over-65s living alone were in consistent poverty.

Taken in conjunction with a report released by the think-tank Tasc earlier this week which indicates that, like many other countries, an increasing amount of Irish wealth in being concentrated in ever-fewer hands, these reports would appear to be clear warning signs that income inequality remains a major challenge in Irish society.