New ESRI Report Highlights Persistent Poverty and Deprivation in Ireland Despite Overall Decline in Poverty Rates

A new thematic report by the Economic and Social Research Institute (ESRI), published in partnership with the Department of Social Protection, examines persistent income poverty and material deprivation in Ireland between 2015 and 2023. Using longitudinal data from the Survey on Income and Living Conditions (SILC), the study explores poverty dynamics, the overlap between income poverty and deprivation, and the vulnerable groups more likely to experience poverty.

Key Findings

  • The annual at-risk-of-poverty (AROP) rate declined from 16% in 2016 to 11% in 2023, while the persistent AROP rate declined from 10% in 2015-2016 to 7% in 2022-2023. The latter shows the share of the population who were AROP two years in a row.
  • Material deprivation fluctuated more than AROP with the economic cycle and inflation, increasing in the recent period from 14% in 2021 to 17% in 2023. Between 2016 and  2023, 22% of people experienced deprivation at least once in two consecutive years, and almost half of these were in persistent deprivation.
  • Over the period 2016 to 2023, on average, 5% of people were both AROP and deprived.
  • Lone parent families, large families, and households with a working-age adult with a disability faced the highest risks of persistent AROP and deprivation. Children in lone parent families, in particular, are most at risk, with an average 33% of them being persistently deprived, and 21% being persistently AROP, between 2016 and 2023.
  • Women were more likely than men to experience transient (i.e., for one year) and persistent material deprivation.
  • Households in the northern and western regions, people living with low-educated or unemployed household heads, and workless households were significantly more likely to experience transient and persistent poverty and deprivation.

Policy Implications

  • This study highlights the importance of understanding poverty as a dynamic and multifaceted issue, and the need for a multi-dimensional approach to poverty measurement and policy.
  • A combined approach using both income and material deprivation measures is necessary to fully capture economic hardship and inform effective policy responses.
  • Implementing targeted policy measures to support lone parents, large families, and households with a person with disabilities is essential to address their high risk of poverty.
  • Timely adjustments to social welfare payments, including pensions, are critical to protect vulnerable groups from inflation and economic disruptions.
  • Regional investment in education and employment opportunities can help address structural disparities and reduce poverty.

Co-author of the report, Anousheh Alamir, said: “This report shows the complex nature of poverty. Over two year stretches, lone parent families and households with a disabled adult are found to be the most at risk of income poverty and/or material deprivation for one year only (i.e., transiently). And while they are also the most likely to be materially deprived two years in a row (i.e., persistently), large families are the most at risk of income poverty during that time. Thus, different groups are vulnerable to different forms and durations of poverty, an insight that should be key for effective policy.” 

Bertrand Maître, co-author of the report, said: “Research shows that the longer people stay in poverty, the harder it is for them to escape. This highlights the urgent need to tackle persistent poverty and to design policies that protect the most vulnerable groups from falling into long-term poverty.”