Rise in child poverty despite growth in average incomes

Recent research conducted by the Economic and Social Research Institute (ESRI) in partnership with Community Foundation Ireland reveals a concerning rise in child poverty in Ireland, despite a strong growth in average household incomes. According to the study, 200,000 children in Ireland are now living in households below the poverty line, defined as having less than 60% of median household income.

This increase, which rose by almost 30,000 children in 2024, is particularly pronounced among families with young children, with the poverty rate for families whose youngest child is aged five years old or under rising from 20.8% to 26.6% when housing costs are accounted for.

The report highlights that the benefits of rising incomes are not being shared evenly, as the number of children in households below the poverty line increased by 40,000 to 260,000 children (22.7%) when housing costs are considered. This trend is not new, as poverty rates have consistently risen since 2018 for families with young children, with the rate increasing from 10.7% to 20.3% on a before-housing costs basis and from 17% to 27% on an after-housing costs basis.

Experts emphasize that it is crucial to account for housing costs when measuring child poverty, as the current government target does not consider this factor. Dr. Barra Roantree, Assistant Professor at Trinity College Dublin and co-author of the report, stressed the need for new policy measures, such as a second tier of child benefit, to help address the issue.

Despite the fact that many parents can shield their children from some of the effects of household hardship, one in ten children still experience deprivation of basic necessities enjoyed by their peers, which can lead to social and educational disadvantages.

Community Foundation Ireland CEO Denise Charlton emphasized that the findings demonstrate that, even when the country appears prosperous on paper, a significant number of children and families continue to face substantial challenges. The organization will use these findings to inform future work aimed at advancing equality and strengthening communities, urging policymakers to implement systemic policy changes to address the growing issue of child poverty in Ireland.