According to recent estimations from the Economic and Social Research Institute (ESRI), approximately 230,000 children in the State are currently lacking necessary items and experiences for a satisfactory living. Reports indicate a 14% increase in material deprivation amongst young individuals under 18 since 2022. This term is defined as the inability among persons in households to afford at least two of the listed 10 essential items, and it has surged from 17.7% to 20.1% for under-18s between 2022 and the previous year.
Conversely, the figures for material deprivation for those aged 65 and above have dropped from 11.7% to 9.8% during the same time frame. Moreover, this demographic experienced a rise in their average real disposable incomes by approximately 3%, thanks to improved employment rates and wage growth.
Items considered essential include two pairs of sturdy shoes, a warm water-resistant coat, new clothes, having a home adequately heated for the last year, and consuming a meal with meat, chicken, fish or a vegetarian alternative every two days.
These insights originate from research conducted by ESRI, published on a recent Thursday, and produced in collaboration with Community Foundation Ireland. The data was gathered from the latest Survey of Incomes and Living Conditions by the Central Statistics Office.
The report also highlights that after ten continual years of growth, inflations has resulted in a drop in average disposable income compared to two years ago across all citizens. After adjustments for household sizes, post-tax and transfer incomes have seen a real-term drop on average and at the median by 2.2% and 5.4% respectively from 2021 to 2022, making the average household disposable income lower than in 2020.
Notably, while the average post-tax and transfer incomes have reduced by roughly 3% for those under 65 in real terms, they have expanded by 3% for individuals aged 65 and above.
The research implies that, in terms of disposable income and taking into consideration household size and housing costs, individuals over the age of 65 are now better off on average.
Despite a minor decrease in child poverty rates before factoring in housing costs, the study indicates that these rates have risen from 20% to 22% in three years from 2020, when housing costs are included.
Material deprivation has a direct link with lower civic participation and reduced social contacts, leading to lowered levels of life satisfaction, the study points out. The conclusions also highlight the negative impact the Covid-19 pandemic has had on aspects like social contact, life satisfaction, and civic engagement, with life satisfaction levels in 2023 still not rebounding to the rates observed in 2018.
One of the researchers, Dr Barra Roantree, states that their results may necessitate further policy actions, such as introducing another level of child benefit aimed at families with low income, in order to meet the government’s goal of reducing child poverty and material deprivation.
Conversely, Dr Helen Russell, another researcher, comments on the profound impact poverty inflicts on civic and social engagement. She notes that social trust and cohesion are compromised when individuals feel socially neglected and unacknowledged. Strengthening the social infrastructure of impoverished communities, such as by initiating community development programmes and investing in public facilities that encourage social interaction, is deemed important.
Denise Charlton, the CEO of Community Foundation Ireland, observes that the issues raised in the research resonate with the daily ground reality faced by many, underlining the importance of policy actions which foster equality and inclusion.