THE LEVEL OF child deprivation is on par with the “darkest days” of the economic crash, with one in five children currently living below the poverty line.

The new report by the Economic and Social Research Institute (ESRI) states that inflation has disproportionately affected those on lower incomes, but universal welfare increases have largely not kept pace with rising costs.

“In real terms, they translate as welfare cuts or freezes when measured against inflation,” the report said.

Temporary or once-off measures such as double child benefit payments and energy credits were welcomed in previous budgets, but with the government saying they will not feature this year, the ESRI says poor families will be made even worse off.

Researchers said that a second tier of child benefit targeting low income households “could lift more than 50,000 children out of poverty”.

They estimate this would cost around €772 million, but they say it’s a “price worth paying, not just for the immediate benefits but the opportunity it offers to end the cycle of intergenerational poverty”.

Dr Barra Roantree, one author of the report, said it’s “hard to see” how the government can meet its own child poverty reduction targets without major reform.

No real progress

The latest data suggests that no real progress has been made in reducing levels of child poverty, despite reductions purportedly being the goal of government policy.

Ireland also performs poorly in comparison to other EU countries in terms of rates of After Housing Costs (AHC) income poverty for children, ranking 16th out of 27 countries.

Poverty, based on expenditure rather than income, was 16.7% in 2022/2023, which is slightly higher than in 2015/2016.

Similarly, the rate was 16.6% in 2009/2010. 

The ESRI’s report also zoned in on what child poverty means for the future of those children.

Studies show that economic vulnerability during early and middle childhood is associated with lower cognitive scores and lower attainment in the Junior Certificate.

Those who experience poverty between the ages of 14 and 16 are significantly less likely to complete secondary education. And those who don’t finish secondary school are more likely to fall into poverty as adults, continuing the cycle.

Children in low income families are also less likely to have access to extracurricular activities, which are associated with higher educational attainment and higher earnings later on.

Poverty also negatively impacts children’s health, both physical and mental.

One study cited by the ESRI found that children who live in poverty are 70% more likely to have low birth weight; twice as likely to require hospitalisation; 40% more likely to miss school because of sickness; and 80% more likely to have their activity limited by a chronic disease.

Denise Charlton, Chief Executive of Community Foundation Ireland, which supported the research, said it “lays bare” the stagnation in real incomes for the lowest income households.

“This will come as no surprise to the voluntary, community and charitable partners of the Community Foundation responding to this crisis on the ground every day. Now we have the evidence which reflects that everyday reality,” she said.

“Our partners will use this research to strengthen their calls for systemic change – including a second targeted tier of child benefit.”