Child Poverty in Ireland Returns to Crisis-Era Levels, ESRI Report Warns

More than 225,000 children in Ireland are now living in poverty once housing costs are factored in—levels comparable to those witnessed during the 2007–2009 financial crisis, according to new research by the Economic and Social Research Institute (ESRI).

The study reveals that one in five children belong to families below the poverty line. Ireland ranks 16th out of 27 EU countries on child poverty rates when housing costs are deducted from disposable income. The report notes that this rate has remained “largely unchanged” in recent years, underscoring the lack of progress despite government commitments.

Unlike the standard poverty measure, the after-housing-cost poverty rate accounts for rent and mortgage expenses, offering a more accurate picture of household vulnerability.

The research also highlights the disproportionate impact of inflation on low-income households. Between 2022 and 2023:

• The lowest-income fifth of households experienced inflation 7 percentage points higher than the national average of 6.3%, driven by rising costs of energy and groceries. 

• The highest-income fifth saw inflation 5 percentage points lower than the headline rate.

Although nominal incomes rose by 11.3%, real incomes actually fell, as household prices increased by 14.6%, leaving average disposable income 0.6% lower in 2023 and 3.3% below 2021 levels after adjustments for household size and inflation.

Overall poverty rates have not shifted significantly in the latest year of data. Report co-author Dr. Barra Roantree warned that without “major reform,” such as introducing a second tier of Child Benefit, the government is unlikely to meet its child poverty reduction targets.

The long-term consequences are stark. Adults aged 25–59 who grew up in poverty are eight percentage points more likely to report poor health compared to those raised in better conditions—evidence of the enduring impact of childhood deprivation.