Sharp rise in child poverty despite strong growth in average incomes

The number of children in households below the poverty line – defined as having less than 60% of median household income – rose to 200,000 (17.4%) in 2024: an increase of almost 30,000 children (2.5 percentage points).

This was despite strong growth in average household income, which – when adjusted for inflation, household size and composition – rose by 4% between 2023 and 2024.

The increase in child poverty was larger after housing costs were accounted for, rising by 40,000 to 260,000 children (22.7%).

The rise in child poverty was particularly pronounced for families with young children, increasing from 20.8% to 26.6% for families whose youngest child was aged 0–5 when housing costs were accounted for but falling from 12.4% to 10.1% for families whose youngest child was aged over 11.

These are among the key findings of new ESRI research published today in partnership with Community Foundation Ireland, using the latest data from the CSO’s Survey of Incomes and Living Conditions (SILC).

Other key findings of the research include:

• 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 tenth of households compared to 3% for the bottom half. This translated into a rise in income inequality as measured by the Gini coefficient, from 0.257 in 2023 to 0.265 in 2024. While this should be seen in the context of a sustained decline in income inequality over recent decades, the economic growth experienced since the COVID-19 pandemic has failed to deliver the same benefits for the bottom of the distribution as seen during the Celtic Tiger period and the 2014–2019 recovery.

• The Government is very far from meeting its target for reducing child poverty to 3% by 2030. This target is defined as the share of children who are both below the poverty line (before housing costs are accounted for) and experiencing material deprivation (an inability to afford 2 or more essential goods and services). Using this definition, child poverty currently stands at 8%. Additionally, this measure fails to capture a large number of children who experience material deprivation but have incomes just above the poverty line, meaning it fails to capture many of those facing high housing costs.

• However it is defined, new policy measures will be needed for the Government to meet its official child poverty target. A means-tested second tier of Child Benefit 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.

• In 2024, 10% of children under 16 were deprived on a child-specific deprivation indicator, which includes items such as being able to take part in school trips, regular leisure activities, or new clothes. Children in large families, in jobless households or living in supported rental housing were more likely to experience child-specific deprivation.

• There is clear evidence that families prioritise the needs of children. Even when the household is materially deprived or on a low income, the majority did not report child-specific deprivation. However, shielding children is harder for some families and a substantial minority of children under 16 in income-poor families experienced child-specific deprivation.

• In 2024, 9% of children under the age of 16 experienced both child-specific deprivation and household deprivation. In these households, parents lacked the resources to shield their children from material hardship. These children were more likely to live in lone-parent families, households with weak labour market attachment and migrant families.

Dr Barra Roantree, Assistant Professor at Trinity College Dublin and a co-author of the report, said:

“Our findings suggest that it is important to account for housing costs in the measurement of child poverty, something the Government’s official 2030 target does not do.”

“Regardless of how it is measured, it is clear that new policy measures – such as a second tier of child benefit – will be needed if the Government is to come close to meeting this target.”

Bertrand Maître, Senior Research Officer at the ESRI and co-author of the report, said:

“While many parents are able to shield their children from some of the effects of household hardship, one in ten children are not protected from these consequences and experience deprivation of basic necessities enjoyed by their peers. This is likely to mean children feel excluded and miss out on social and educational opportunities.”

Denise Charlton, Chief Executive of Community Foundation Ireland who supported the research, added:

“These findings provide the 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. Community Foundation Ireland will use these findings to inform our next steps and future work as we continue to mobilise strategic philanthropy to advance equality and strengthen communities. We strongly urge others, including policymakers, to also use this evidence to deliver the systemic policy changes needed.”