New tier of child benefit could help check poverty, says think tank

The number of children in households below the poverty line grew by almost a fifth in 2024, according to fresh research from the Economic and Social Research Institute (ESRI). That was despite strong growth in average household income, which – when adjusted for inflation, household size and composition – rose by 4 per cent between 2023 and 2024. Being below the poverty line is defined as having less than 60 per cent of median household income.The ESRI said additional policy measures will be needed for the Government to meet its official child poverty target. It said a means-tested second tier of child benefit would “reduce child poverty more effectively, per euro spent, than increasing existing supports. This is because many low-income families with children are not eligible for – or do not take up – existing means-tested supports and so do not benefit from increases to these supports.” READ MOREThe Government ran a public consultation on a targeted child payment and working-age payment earlier this year. The ESRI report, published on Tuesday, is in partnership with Community Foundation Ireland and uses the latest data from the Central Statistics Office survey of incomes and living conditions. The increase in child poverty was larger after housing costs were accounted for, rising by 23 per cent to 260,000 children. The analysis also found that the Coalition was “very far” from meeting its target to reduce child poverty to 3 per cent by 2030. This target is defined as the share of children who are below both the poverty line, before housing costs are accounted for, and experiencing material deprivation, defined as an inability to afford two or more essential goods and services. Using that definition, child poverty stands at 8 per cent, according to the ESRI. “Additionally, this measure fails to capture a large number of children who experience material deprivation but [whose families] have incomes just above the poverty line, meaning it fails to capture many of those facing high housing costs,” it noted. The rise in child poverty was particularly pronounced for families with young children, increasing from 21 per cent to 27 per cent for families with children up to age five when housing costs were accounted for but falling from 12 per cent to 10 per cent for those whose youngest child was above 11 years old.Barra Roantree, assistant professor at Trinity College Dublin and a co-author of the report, said: “Our findings suggest that it is important to account for housing costs in the measurement of child poverty, something the Government’s official 2030 target does not do.“Regardless of how it is measured, it is clear that new policy measures, such as a second tier of child benefit, will be needed if the Government is to come close to meeting this target.”Community Foundation Ireland chief executive Denise Charlton added: “These findings provide the evidence that many children and families continue to face enormous challenges, even in times when, on paper, our country is rich. The harsh reality is that a rising tide does not lift all boats.”