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Poverty Data

Dáil Éireann Debate, Wednesday - 19 December 2018

Wednesday, 19 December 2018

Ceisteanna (550)

Willie O'Dea

Ceist:

550. Deputy Willie O'Dea asked the Minister for Employment Affairs and Social Protection the data on in-work poverty here; the way in which this compares to the EU average; and if she will make a statement on the matter. [53701/18]

Amharc ar fhreagra

Freagraí scríofa

‘In-work poverty’ measures the at-risk-of-poverty rate (i.e. the percentage with incomes below 60% of the median income) among adults (16+) who are ‘in-work’, based on their self-defined principal economic status. The most recent CSO Survey on Income and Living Conditions data from 2017, released this week, show the at-risk-of-poverty rate was 5.4% for those aged 16 years or over with a principal economic status of ‘at work’, a reduction on the 2016 figure of 5.8%. This is considerably lower than the 2017 national at-risk-of-poverty rate which was 15.7%, down from 16.2% in 2016. The most recent available data from Eurostat is from 2016 and shows an EU average 'in-work poverty' rate of 9.6%.

It should be noted that the SILC data from 2012 through to 2016 was revised by the CSO, resulting in some changes to previously published data. However the CSO has stated that the revised estimates are not statistically significantly different from the pre-revision estimates (https://www.cso.ie/en/statistics/socialconditions/).

Macro-economic and labour market indicators have shown continued economic and employment growth in the last number of years. Unemployment has fallen from 6.8% in mid-2017 to 5.3% in November 2018. 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, increases to the qualified child rate, income disregards for lone parents, the extension of the fuel allowance season and new initiatives to make work pay, such as the Back to Work Family Dividend. In 2017, social transfers reduced the national at-risk-of-poverty rate from 32.3% to 15.7% after social transfers. This equates to a poverty reduction effect of 51% in 2017; ensuring Ireland remains one of the best performing EU countries in reducing poverty through social transfers.

Income supports play an important role in addressing poverty. The Working Family Payment (WFP) (formerly known as Family Income Supplement) and the Back to Work Family Dividend (BTWFD) are important in-work supports for this group. The WFP 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.

The improvement in the economy, together with the welfare measures referred to, have contributed to the reduction in poverty levels that are evident in the recently released 2017 SILC data. As the economy continues to improve and as individuals and families on low incomes experience the benefits of the welfare increases announced in Budget 2018 and Budget 2019, I expect to see further reductions in poverty levels and improvements in living standards in 2019 and beyond.

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