The Deputy is referring to the Combat Poverty Agency fact sheet on measuring poverty which sets out a number of approaches which can contribute to the development of a view of what is poverty. Due to the wide variety of perspectives which can be brought to bear on the question of poverty measurement, it is acknowledged that it is not possible to identify a poverty measure which is indisputably and universally accepted. This is particularly true for a country like Ireland that has experienced rapid economic growth over the last ten years.
A number of indicators, known as the Laeken indicators, have been agreed at EU level on which all member states must report in their national action plans against poverty and social exclusion. These include: income before and after social transfers; persistent poverty; early school leaving; jobless households; long-term unemployment; life expectancy, etc. These indicators are useful and highlight different aspects of the situation in relation to poverty and social exclusion. Two main indicators used in Ireland are consistent poverty and at risk of poverty.
The consistent poverty indicator measures the percentage of persons, below 60% of average income, who are also deprived of goods and services regarded as essential. Developed by the ESRI, consistent poverty is the measure by which the Government has set its current national poverty reduction targets. A key target in the revised national anti-poverty strategy is to reduce the numbers of those who are consistently poor below 2% and, if possible, eliminate consistent poverty by 2007. The percentage of households in consistent poverty reduced from 9.7% in 1997 to 5.2% in 2001 — the latest year for which published data is available.
The at risk of poverty indicator measures the percentage of persons below a relative income threshold of 60% of median income. According to the latest ESRI published data, the percentage classified as being at risk of poverty rose from 18.2% in 1997 to 21.9% in 2001.
The increase in the proportion at risk of poverty arose mainly from the almost doubling of average net incomes during this period. Substantial increases in social welfare payments, which have amounted to 27% in real terms over a more recent period, 1997 to 2004, did not keep pace with the unprecedented increases in incomes generally. The at risk of poverty indicator is a useful indicator to assist in identifying those vulnerable to falling below general living standards.
There is no single best way to measure poverty. No one method can provide all the answers. My Department is aware of and informed, as appropriate, by all of the poverty measures referred to by the Deputy.
The Government has made substantial progress towards achieving the NAPS targets of €200 per week for old age pensions and €150 — in 2002 terms — for the lowest rates of social welfare payments by 2007. The €874 million social welfare package announced in budget 2005 represents a €244 million or almost 40% increase on the 2004 package of €630 million and brings the projected level of social welfare expenditure in 2005 to over €12.25 billion. That represents an increase of an additional €1 billion or almost 9% on the allocation for 2004. This level of expenditure is the highest ever on social welfare and is indicative of the Government's priority to protect and improve the living standards of social welfare recipients.
