Dáil Éireann Debate, Wednesday - 5 March 2014
4. Deputy Willie O'Dea asked the Minister for Social Protection the percentage of the population who live below the poverty line, measured as 60% of the median income; the actions she is taking to reduce this number; and if she will make a statement on the matter. [10612/14]
Amharc ar fhreagraThis question arises from the latest statistics which show that at least one in six people in Ireland lives below the internationally accepted poverty line. The Government is committed in its programme for Government and both parties' election manifestos to reducing the incidence of poverty in Ireland. I am anxious to know what progress the Government has made.
The at-risk-of-poverty rate is one of a number of indicators used to measure different aspects of poverty. It captures those on low net incomes, but on its own gives only a partial picture of poverty. The official measure of poverty in Ireland is consistent poverty, which measures individuals who are both at risk of poverty and experiencing basic deprivation.
Despite the economic crisis, the at-risk of poverty rate was lower in 2011, at 16%, than in 2007, when it was 16.5%. The Department is awaiting publication of the latest poverty figures from the 2012 CSO survey of income and living conditions, known as the SILC survey. It is a pity that, by and large, the data are only available a full year or more in arrears. A key determinant of the at-risk of poverty rate is the impact of social transfers. In this regard, the Department recently published a study by the ESRI analysing the role of social transfers in poverty alleviation. The study compares the at-risk of poverty rate before and after social transfers and has found that in 2011 the at-risk of poverty rate reduced from 55% to 16%. In other words, if we did not have a strong social welfare system and a strong level of payments, 55% of people would be at risk of poverty rather than 16%. These social transfers lifted almost 40% of the population out of poverty. This applies to pensioners, in particular. This reflects the continuation of substantial State investment in the social protection system, despite the constraints of the economic crisis. A key element of this investment has been the maintenance of core weekly rates of welfare payments since the Government took office. Deputy Willie O'Dea will know that in his party's time the weekly rate was reduced by €16.40 for everyone, except pensioners.
Last Friday I published a social impact analysis of the main welfare and tax changes to take effect in 2014. This analysis has found no significant change in the at-risk of poverty rate as a result of these measures, thereby confirming the ongoing role of social transfers during the recession. The analysis is available to download from the Department's website. The Government’s objective is to reduce the rate of consistent poverty to 4% by 2016 and to 2% or lower by 2020. That is the objective of the programme for Government.
An internationally accepted standard regards the poverty line as equivalent to 60% of average income in a society. Anyone below that level is judged not to have sufficient on which to live with a reasonable degree of dignity. The latest available figures which I agree are dated show that at least one in six people - almost 750,000 people - was living on an income below that level, or approximately €208 a week for an individual. Why are no updated figures available? I suspect that as a result of the recent regressive budgets, that figure has probably increased, but we do not know. When will the figures be available? Why did the Government decide to revise its targets for reducing the rates for those at risk of poverty and living in consistent poverty?
The figures are collected in the SILC survey of incomes and living conditions. The information is collected by a variety of bodies in conjunction with the CSO, with an input from bodies such as the ESRI and modelling by means of the SWITCH model. I would prefer if the figures were much more up to date. More recent figures such as those in this year's analysis of the social impacts with the latest modelling by the ESRI will show that there has been no significant change in the at-risk of poverty rate as a result of the measures in the budget. I refer to people in low-paid work compared to those on a social welfare income. There has been much academic debate and criticism about what is and is not included in the SWITCH model. For example, the value of having a medical card for a family on social welfare is not in our type of SWITCH model, whereas it is included in other jurisdictions. The Deputy will know that the medical card is a very valuable entitlement which is available to those on social welfare as opposed to a person on a middle-level working income.
The medical card has been valued at approximately €1,000 a year, which means that a single adult on the ordinary rate of social welfare is just on the poverty line. Does it not strike the Minister as curious that of the member states of the European Union, apart from Ireland, the last to publish this statistic did so last October, while we are still waiting? I take her point that the CSO compiles the figures.
The CSO is completely independent.
I have been reading the detailed information collated by the CSO, including numbers of animals. Does the Minister think it is reasonable that we know the number of goats in County Kerry in 2012, whereas we do not have information on the number of people who were living below the poverty line in Ireland in 2012?
I am delighted that the Deputy wants the information and statistics to be published in a more timely fashion; he is singing my song in that regard. It is important that the CSO be seen to be independent from the viewpoint of the European Union and other international institutions. It organises its work programmes according to its own schedules. I agree with the Deputy that it would be preferable to have the information published in a more timely fashion. The critical achievement of Ireland which has been noted by economic commentators around the world and, in particular, the European Union is that our strong system of social welfare payments and the Government's decision not to reduce core weekly social welfare payments means that the reduction in the at-risk of poverty rates through social transfers is among the highest in the European Union. Getting people back to work will also assist those at risk of poverty. The Department supports low-income families in work by means of family income supplement. These are the best ways of tackling poverty.
