A NEW report has revealed that a sixth of households in the country were in a poverty trap as the economic boom days evaporated. The ESRI report found that the levels of poverty in Ireland dropped from 19 per cent in 2004 to 16 per cent in 2007 while it also said that lone parent families were most vulnerable even before the recession took its grip on the struggling economy.

It also said that poverty rates may increase as more rely on benefit payments.

“In 2004, children in lone parent families accounted for 53% of children in consistent poverty, while in 2007, 65% of children in consistent poverty were in such families,” it stated.

In a survey of 13,961 people in 5,600 households, the ESRI calculated that anyone earning less than 229 euro a week in 2007 – including those dependant on benefits – was income poor.

Dr Helen Russell, of the ESRI, warned poverty rates will rise if people remain long-term unemployed during the recession.