Report says one sixth of households in poverty before recession

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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.

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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.

“The problem is if people remain unemployed for 12 months or more they start to experience deprivation,” she added.

It found the “at risk of poverty rate” among pensioners was 16%, down from 27% in 2004, and in the working age population the rate was 15%, from 17%.

Older people living alone were twice as likely to fall below the threshold than those living with a partner.
While the unemployment rate was just 4.8% in 2007 when the report was completed, it has now soared to 13.8% with 466,923 people on the dole.