THE NUMBER OF children in households below the poverty line rose to 200,000 in 2024.

It’s an increase of almost 30,000 children on 2021, the last year for which there is data, according to new research from the Economic and Social Research Institute (ESRI).

This is despite the fact that the average disposable household income increased by 4% between 2023 and 2024, accounting for inflation, after Russia’s war in Ukraine resulted in several years of economic stagnation.

Household incomes grew faster at the top than the middle or bottom of the income distribution between 2023 and 2024.

Incomes grew by more than 7% for the top 10% of households compared to 3% for the bottom half, increasing inequality across Irish society.

It is also a marked difference from previous progressive disposable income increases in Ireland since the 1970s (excluding the years of the financial crisis), when it was those at the bottom of the income distribution that rose above.

Disposable income averaged €38,021 for the lowest-income fifth and €141,580 for the highest-income fifth in 2024.

The poverty line

Those deemed to be below the poverty line are those defined as having less than 60% of the median household disposable income. This does not include housing costs.

Accounting for housing costs, there are 260,000 children below the poverty line. This is an increase of 40,000 children on 2021.

The report’s authors flagged concern around the fact that the official measure of poverty does not account for housing costs, highlighting that families renting privately or paying a mortgage typically ring-fence a large portion of their income for this purpose. 

“Given the importance of housing costs for families with children and the difference it makes to estimates of poverty, there is a strong case that the child poverty target should be defined in terms of an income measure that accounts for housing costs,” the report said.

“Regardless of which measure is used, the government is very far from meeting its 2030 target.”

The government has stated its intent to reduce child poverty to 3% by 2030. The report said that to achieve this, two-thirds of children in consistent poverty would have to be lifted above the poverty line. 

This scale of recovery was seen between 2013 and 2020 – but this was due to the State recovering from the economic crash.

Related Reads

'This is a human crisis': New record of 16,614 people now in emergency accommodation

It was also outlined that although there are more children in households that operate below the poverty line, the majority are not deprived of necessities as parents often prioritise their children.

The ESRI highlighted various policy measures that have been discussed to target the issue of child poverty, but recommended a means-tested second tier of child benefit.

It said this would reduce child poverty more effectively, per euro spent, than increasing existing supports.

“This is because many low-income families with children are not eligible for – or do not take up – existing means-tested supports and so do not benefit from increases to these supports,” the report stated.

Denise Charlton, the chief executive of Community Foundation Ireland, who supported the research, said the findings evidence that many children and families continue to face “enormous” challenges, “even in times when on paper our country is rich”.

“The harsh reality is a rising tide does not lift all boats.”

She urged policymakers to use the report’s evidence to deliver systemic policy changes.