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Rise in number of deprived children as inflation erodes incomes – report

Rise in number of deprived children as inflation erodes incomes – report
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Gráinne Ní Aodha, PA

There has been an increase in the number of children being deprived of basic essentials because of inflation, a report has said.

About 230,000 children suffered from material deprivation in 2023, an increase of 30,000 children compared with 2022.

Material deprivation tracks the number of people in households unable to afford two or more items from a list of ten essentials.

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Although rates of child poverty have fallen slightly on a before-housing-costs basis, they have increased from 20% in 2020 to 22% in 2023 if housing costs are excluded.

The research also found there was a 3% decline, adjusted for inflation, in the average disposable income of households with children.

Dr Barra Roantree, a co-author of the report, said a two-tier child benefit system may need to be considered.

He said: “The findings in this report suggest additional policy measures, such as a second tier of child benefit targeted at low-income families, may need to be considered if Government commitments to reduce rates of child poverty and material deprivation are to be achieved.”

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According to the research, post-tax incomes adjusted for household size have fallen between 2021 and 2022, leaving average household disposable income lower than it was in 2020.

An exception to this is the over-65s – material deprivation fell for this group from 11.7% in 2022 to 9.8% in 2023.

This cohort also saw their average disposable incomes rise by 3%, boosted by a rise in income from work and higher employment rates.

The research also indicated that life satisfaction had still not recovered in 2023 to pre-pandemic levels recorded in 2018, and said civic participation in 2022 was half the level in 2015.

The figures from the ESRI research are based on the latest data from the CSO’s Survey of Incomes and Living Conditions (SILC).

Dr Helen Russell, a research professor at the ESRI and co-author of the report, said that poverty has “a depressing effect on both social and civic participation”.

“If individuals feel excluded from society and that their voices are not heard this undermines social trust and cohesion.

“It is important that the social infrastructure of disadvantaged communities is supported, for example through community development programmes and investment in civic amenities that promote social contact.”

Denise Charlton, chief executive of Community Foundation Ireland who supported the research, said the challenges identified in the research “reflects the reality many face on the ground every day, and highlights the importance of policy decisions which promote inclusion and equality for all”.

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