Dáil Éireann Debate, Thursday - 9 February 2017
135. Deputy John Brady asked the Minister for Social Protection the actions he will take in response to the survey on income and living conditions 2015 figures released recently, specifically regarding the working poor in view of the fact that over 100,000 persons are employed and living in poverty; and if he will make a statement on the matter. [6428/17]
Amharc ar fhreagraEurostat data, based on the latest CSO Survey on Income and Living Conditions for 2015, shows that Ireland has one of the lowest in-work poverty rates among the EU-28 member states. The EU average is 9.5%. Ireland ranks 4th lowest with a rate of 4.8%.
The full impact of the recovery is not reflected in these 2015 figures. Macro-economic and labour market indicators have shown continued economic and employment growth since then. The number of people in receipt of working-age income and employment supports has continued to fall.
With these improvements, the Government was in a position to introduce a range of welfare increases from 2016 onwards. Measures include increases in core weekly rates for working-age adults, child benefit, income disregards for lone parents, rent limits for housing support payments and new initiatives to make work pay, such as the Back to Work Family Dividend.
Income supports play an important role in addressing poverty. The Family Income Supplement (FIS) and Back to Work Family Dividend (BTWFD) are important in-work supports for this group. FIS is an in-work support which provides an income top-up for employees on low earnings with children. It is designed to prevent in-work poverty for low paid workers with child dependants and to offer a financial incentive to take-up employment. The BTWFD is a targeted scheme designed to further improve the incentive to take-up employment or self-employment for welfare recipients with children. In 2015, social transfers reduced the at-risk-of-poverty rate for people of working-age from 35.3% to 18.2%. This equates to a poverty reduction effect of 52% in 2015.
Recent budgets have been forward looking, allocating limited resources in a prudent way, to make sure that everyone benefits from the recovery. The focus of these budgets has also been on the provision of services rather than simply on income supports (e.g. extension of the School Meals Scheme and the Single Affordable Childcare Scheme).
The Social Impact Assessment of Budgets 2016 and 2017 show average household incomes increasing by 1.6% (€14.30 per week) and 1% (€9.20 per week) respectively. They also provided greater rewards for working, with over 80% of the unemployed substantially better-off in work and almost 70% of the working population experiencing a reduction in their Marginal Effective Tax Rate.
The improvement in the economy, together with the welfare measures referred to, are likely to have supported a reduction in poverty since the period in 2015 to which the SILC publication refers. This improvement is expected to continue with further rises in incomes and living standards.
The Government’s strategy for addressing poverty and social exclusion is set out in the National Action Plan for Social Inclusion. The Plan identifies a wide range of targeted actions and interventions to achieve the overall objective of reducing consistent poverty. The Department will review the Plan this year, as it reaches the end of its current term, with a view to developing an updated plan for future periods. The Department will also review the national social target for poverty reduction. This review will be undertaken in consultation with relevant stakeholders.
