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Tackling Low Income and Deprivation: Developing Effective Policies

26/06/2008

By Tim Callan (ESRI), Brian Nolan (UCD), John Walsh (ESRI), Chris Whelan (ESRI) and Bertrand Maitre (ESRI).

How could policies aimed at reducing poverty and the numbers on low incomes be made more effective? A new study draws on the experiences of other countries, and new evidence for Ireland to examine these issues.

Major findings include:

• The risks of poverty for elderly persons have fallen sharply in recent years. Special increases in the State old age pensions have played a major role in bringing this about. Pensioners now have lower risks of poverty than the general population, both in terms of income (the "at risk of poverty" measure) and the combination of low income and deprivation (the "consistent poverty" measure).
• Current policy commitments include a target for the State Pension of Euro 300 per week by 2012, but a more modest target for welfare payment rates for other groups, such as persons with a disability, lone parents and the unemployed. Analysis by the ESRI suggests that a policy that would give greater priority to payment rates to groups currently at the highest risk of poverty could yield greater reductions in poverty.
• The Government's discussion paper on lone parents proposed a system of income supports for lone parents combined with "activation" policies (promoting participation in the labour market and/or education and training) This is in line with best international practice. Much depends on implementation, and here a key feature is that there must be a linkage between what is sought in terms of activation and the possibilities afforded by the current state of childcare services.
• Countries with the best record on the reduction of child poverty also tend to have the lowest rates of overall poverty. This suggests that there are benefits from focusing on policy developments in countries in Scandinavia rather than policy developments in English-speaking countries, where rates of child poverty tend to be higher.
• The rapid fall in the Irish unemployment rate has had substantial social as well as economic benefits. There has, however, been a growth in the numbers of "working poor". While the risks of poverty are low for those in employment, the numbers in this group imply that even a small risk will involve large number of persons.

Note for Editors:

1. Tackling Low Income and Deprivation: Developing Effective Policies, by Tim Callan (ESRI), Brian Nolan (UCD), John Walsh (ESRI), Chris Whelan (ESRI) and Bertrand Maitre (ESRI) will be published by the ESRI on Thursday 26 June 2008. The full report will be available to download from the ESRI website at www.esri.ie.
2. Members of the media are invited to attend a briefing at the ESRI (Whitaker Square, Sir John Rogerson's Quay, Dublin 2) on Wednesday 25 June at 11.00 am.

For further information contact: Professor Tim Callan, ESRI, Tel. 01-863 2018 or email tim.callan@esri.ie

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