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A new report from the Economic and Social Research Institute (ESRI), published in partnership with Community Foundation Ireland, reveals that one in five children in Ireland are living below the poverty line when housing costs are taken into account. The findings place Ireland 16th out of 27 European Union countries for child poverty rates after housing costs.
The report highlights that current childhood poverty levels are comparable to those recorded during the 2007–2009 financial crisis. Despite nominal income growth of 11.3% between 2021 and 2023, real incomes fell by 0.6% due to inflation outpacing earnings, leaving households 3.3% worse off than in 2021.
Lower-income families have been disproportionately affected, facing inflation rates up to 7% higher than the national average. Essential expenses such as light, heat, and groceries make up a larger share of their budgets, exacerbating financial strain.
The ESRI warns that without significant policy reform—such as the introduction of a second tier of child benefit—the government is unlikely to meet its child poverty reduction targets. Researchers also noted long-term consequences for children raised in poverty, including poorer health outcomes, lower educational attainment, and increased risk of unemployment in adulthood.
