A NEW report from the Economic and Social Research Institute (ESRI) shows that one in five children in Ireland are living below the poverty line once housing costs are taken into account.
This places over 225,000 children in poverty, a rate virtually unchanged since the financial crash of 2008.
The report shows Ireland ranking 16th out of 27 European Union countries for child poverty after housing costs.
Despite modest growth in nominal incomes in recent years, the benefits have been effectively erased by soaring inflation and increasing living expenses.
Between 2021 and 2023, average real incomes, adjusted for inflation, fell by 0.6%, leaving them 3.3% below 2021 levels.
This decline came even as nominal incomes rose by 11%, but inflation surged by 14% over the same period, disproportionately affecting lower-income households.
According to the ESRI, the poorest 20% of households have faced inflation rates 7% higher than the national average of 6.3%.
The wealthiest 20% have seen inflation 5% lower than the average.
These disparities show the unequal burden of rising costs, especially for families already struggling to meet basic needs.
Beyond immediate financial hardship, the long-term effects of childhood poverty are pervasive.
The report shows that adults aged 25 to 59 who experienced poverty in childhood are 8% more likely to report poor health and 15% more likely to experience deprivation when compared to those from more advantaged backgrounds.
This is further exacerbated by lower educational attainment and higher unemployment rates among those who grew up in poverty.
Dr Barra Roantree, co-author of the report and an economist at Trinity College Dublin, warned that Ireland is making little headway in tackling child poverty.
"There has been no real progress in reducing levels of child poverty when housing costs are accounted for," he said.
"Without major reform, it is difficult to see how the government can meet its own child poverty reduction targets."
Both Roantree and Community Foundation Ireland’s CEO, Denise Charlton, have called for the introduction of a second-tier, targeted child benefit to supplement the existing blanket payments.
Charlton emphasised that the findings mirror the reality experienced daily by frontline community and charitable organisations, which continue to see growing demand for support among vulnerable families.
The report used the latest data from the Central Statistics Office’s Survey on Income and Living Conditions (SILC) and calls for substantial policy changes to address persistent child poverty in Ireland.
See More: Child Poverty, ESRI, Irish Poverty
