Rise in child poverty despite growth in average incomes

New ESRI research published today shows that child poverty is on the rise despite strong growth in average household incomes, with 200,000 children living in households below the poverty line. It also shows that the benefits of rising incomes are not being shared evenly.

The number of children in households below the poverty line, which is defined as having less than 60% of median household income, increased by almost 30,000 children in 2024.

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

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

The increase was particularly pronounced for families with young children, rising from 20.8% to 26.6% for families whose youngest child was five years old and younger when housing costs were accounted for.

This figure fell 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).

The report found that income poverty rates rose from 12.2% to 12.9% before housing costs, and from 14.6% to 15.6% after housing costs between 2023 and 2024.

This amounts to increases of 52,000 and 69,000 people respectively, concentrated among those in households with children.

Poverty rates have risen sharply and consistently since 2018 for those whose youngest child is aged five years old or under, from 10.7% to 20.3% on a before housing costs basis and from 17% to 27% on an after-housing costs basis.

Children in large families, in jobless households or living in supported rental housing were more likely to experience child-specific deprivation.

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."

'A rising tide does not lift all boats'

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 10 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, said: "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."

Additional reporting via the Press Association