Dramatic rise in inequality highlights that the burden is not being shared equally

30 November 2011: The latest report on income and poverty published today shows that inequality in Ireland has grown dramatically. The preliminary results from the Central Statistics Office Survey of Income and Living Conditions 2010 shows that the at-risk of poverty rate grew from 14.1% in 2009 to 15.8% in 2010. This is despite the fact that the level of income necessary to define a person as ‘at risk of poverty’ from approximately €231/week in 2009 to €207/week in 2010.

Other data also showed a sharp increase in income inequality with the gap between the top and bottom 20% of income earners increasing by 28% between 2009 and 2010.

The Survey also showed that the number of those in material deprivation, and therefore unable to afford 2 of the 11 basic necessities, rose from 17.1% in 2009 to 22.5% in 2010. This is an overall increase of almost two-thirds in those experiencing material deprivation from 2008. While material deprivation is mostly being experienced by those at the very bottom of the income scale there is also a dramatic increase in deprivation amongst those higher up the income ladder.

Those who were unemployed, lone parent households and those not at work due to illness or disability continued to be among those experiencing the highest levels of poverty while the poverty levels of those in work have risen considerably.

The Survey showed that the removal of social payments would skyrocket the 15.8% at-risk of poverty rate to a shocking 51% of the population. This demonstrates an increased dependency on social transfers compared to previous years and stands as a warning to the Government which has stated its intention to cut social payments in next week’s budget.

Paul Ginnell, Policy Officer with the European Anti-Poverty Network Ireland, stated that “this Survey clearly shows that those on the lowest end are faring much worse and that this group is rapidly growing. Polices are having a more detrimental impact on those worse off and this provides a stark reminder to the new Government of the impact of the different policy choices. Continuing the cuts to services and welfare supports and introducing regressive taxes such as a VAT increase and flat rate service charges will increase poverty while introducing progressive tax reform, initially focusing on taxing wealth, will produce more equitable outcomes”.

Notes

• For Full Preliminary CSO Survey of Income and Living Conditions Preliminary report see http://www.cso.ie/en/media/csoie/releasespublications/documents/silc/2010/prelimsilc_2010.pdf . This document also contains an explanation of the different measurement of poverty
• At-risk of poverty in the report refers to those living below a threshold of 60% of the national median income which in 2010 was approximately €207.57 per week.
• Material deprivation refers to those lacking at least two of 11 agreed items.
• Consistent Poverty refers to those who are at-risk of poverty and also experience material deprivation. Consistent poverty has risen from 4.2% in 2008 to 6.2% in 2010. The Government Poverty target is to reduce consistent poverty to between 2-4% in 2012 with the aim of eliminating it by 2016. The Government is currently in the process of revising its target.
• The Community Platform has recently published Paying our Way: Proposals for the Progressive reform of the Irish tax system which is available at http://communityplatform.ie/index.php?page=paying-our-way .

Contact details:

• Paul Ginnell, EAPN Ireland, 22 Great Strand Street, Dublin 1; Tel: 087-6402200; Email: paul@eapn.ie ; Website: www.eapn.ie

The Forum, which takes place in Rialto in Dublin, is the key moment in the year when the Government is expected to present its progress in delivering on its commitments to address poverty and social exclusion. These are outlined in the National Action Plan for Social Inclusion 2007-2016 and includes the overall goal to eliminate consistent poverty by 2016. However, even as early as 2009, consistent poverty had risen from 4.2% to 5.5%.

With the support of the Social Inclusion Division in the Department of Social Protection EAPN Ireland and the CWC have been holding meetings throughout the country in preparation for the Forum. At these meetings participants have highlighted that the crisis and many of the policies to address it have resulted in great difficulties for marginalised communities and groups. These include the closure of services, increased poverty, debt and unemployment with no real prospects for jobs. Another key issue was the closure or cuts to vital community organisations and supports.

Ann Irwin from the CWC states that “participants recognise the challenges faced by the Government but are clear that we are in an absolute social crisis and continued failures to protect vulnerable people and communities will embed poverty and exclusion in our society for decades to come”.

Paul Ginnell, Policy Officer with EAPN Ireland highlighted that ‘the Social Inclusion Forum must not be a talking shop and must be a serious opportunity for people experiencing poverty and social exclusion and their organisations to engage with the Governments on their commitments to addressing poverty and social exclusion. We are happy that the Minister for Social Protection will be present and hope that she seriously engages with the issues that will be raised.’

EAPN Ireland will also publish the latest edition of its Review to coincide with the Forum. The Review entitled ‘Progress Towards Europe 2020’ includes a report from workshops held in September looking at the Government’s commitments to reduce poverty and the reality for marginalised communities.

Notes:

• The Social Inclusion Forum is an annual event organised in the past by the National Economic and Social Forum (NESF) and now by the Social Inclusion Division, Department of Social Protection.
• Consistent Poverty: This refers to those people who are at risk-of poverty (living below 60% of median income) and also experience material deprivation (unable to afford 2 of 11 agreed items). Statistics are produced annually by the CSO in the Survey of Income and Living Conditions (SILC). The latest data is for 2009 with the next survey for 2010 due in November 2011. See http://www.cso.ie/releasespublications/documents/silc/current/silc.pdf

This project was based on the commitment in the Programme for Government for greater scrutiny and debate on the EU in the Oireachtas including a full week each year to debating major EU issues of concern to Ireland.

EAPN Ireland is launching this series of blogs by new TDs with two pieces one from Fine Gael TD Simon Harris and one from Sinn Féin TD Pádraig Mac Lochlainn.  In the coming months these blogs will be joined by analysis from a range of new TDs from other political parties as well as independents.  EAPN Ireland is looking forward to an active debate between political representatives, EAPN Ireland members, and the broader public on the future of the European Social Agenda, and the role of the new Dáil in debate on Europe.

Both contributors believe that we need to build a more just Europe based on solidarity and partnership, particularly as we work to find solutions to the current crisis.

Paul Ginnell, Policy Officer with EAPN Ireland, explained “Our relationship to the EU is crucial not only in terms of particular policies but also in deciding what type of society we are developing in Ireland and the wider EU. We need increased debate at all levels about this relationship and greater debate on this issue in the Oireachtas should be an essential part. As poverty levels rise in Ireland and across the EU we hope that by engaging new TDs in this project we can begin that dialogue and work towards and EU which is based on solidarity with all its citizens”.

Challenging Perspectives – Changing Realities, European Seminar, 10 June, Dublin

Dublin, Thursday June 9th, 2010: Concluding a two year European Commission funded project, the European Anti Poverty Network (EAPN) Ireland and its project partners demonstrate the impact of the response to the crisis in the last two years, and the need to involve those experiencing poverty in generating the solutions to the crisis.

Opening a market place profiling the work undertaken though the project, Anna Visser, Director of the European Anti Poverty Network (EAPN) Ireland stated that “the work of the project partners across Ireland illustrates the realities for those experiencing poverty, and presents their solutions to the problems facing Ireland”.  She continued: “The integrated approach of the project partners demonstrates the complex nature of addressing poverty and exclusion, it is essential that individuals and families have access to an adequate income, quality services, and decent employment and training opportunities.  The crisis is undermining such comprehensive and integrated responses”.

In a key note address, Julien Van Geertsom, President of the Belgian Federal Public Planning Service for Social Integration, told the gathering “Poverty is the result of network of social exclusions which often even reinforce each other…There is a rupture in one or more areas of life. The generally accepted standard of living is no longer reached.

People experiencing poverty are often unable to bridge this gap on their own.”

Speaking as a participant in one of the project’s focus groups, Fiona Sullivan from Cork explained that “I may be an Irish citizen and have all the legal status to afford me certain privileges in this country for example having a passport, but I am still a number in the poverty statistics. I come from a disadvantaged area, I have a disability, I am an early school leaver, I am a single mother, I am unemployed and last but not least I am female.”

The seminar launched a number of research studies including:

*           Burning Issues paper ‘Income, Services, activation’.

*           A report on the integration of social inclusion strategies in Cork City Council

*           Building Effective Consultation and Participation

For More Information:

Anna Visser

Director

European Anti-Poverty Network Ireland

22 Great Strand Street

Dublin 1

www.eapn.ie <http://www.eapn.ie>

01-8745737 / 0863854050

While the report itself is not available, initial information indicates that the report recommends that the system should be maintained to protect reasonable standards for vulnerable workers and that ending it would not lead to an increase in employment.

Ending the JLC process would lead to a reduction in wages for the lowest paid workers, particularly female workers, and result in a dramatic increase in the number of workers and their families which would be forced to live in poverty. Already over one in twenty workers is on an income which places them at risk of poverty.

Paul Ginnell, speaking on behalf of the EAPN Ireland Europe 2020 Working Group, called on the Government to immediately publish the report and to ensure that in its implementation workers can get a decent wage for their work which allows them and their families to live with dignity.

For more information please contact:

Paul Ginnell

Policy and Support Officer

European Anti-Poverty Network Ireland

(01)874 5737 / 087 640 2200

paul@eapn.ie

www.eapn.ie

Anna Visser, Director of EAPN Ireland said ”Garrett was a long standing friend of the members of the Network, he supported our work in facilitating those who experience poverty and their organisations to engage directly with the European Social Agenda.  He had great insight into European Affairs, and his contributions to the discussions within EAPN Ireland were always very valued”.  She continued: “We would like to pass on our sincere sympathies to all of Garrett’s family and friends at this difficult time”.

Photo of Dr Garrett FitzGerald at EAPN Conference ‘Building Social Europe’, Croke Park, Dublin, 19 February 2010 © Photo by Derek Speirs.

If Ireland is to address the deep social, economic and democratic crisis, the next government must play a proactive role in shaping the type of EU which citizens can get behind.  Launching EAPN Ireland’s election demands Anna Visser, Director of EAPN Ireland said that “The Europe of the EU/IMF deal is not the kind of political project which will inspire support from the people of Ireland or across Europe”, she continued “neither will it be the type of Europe that can progress its own objective to lift at least 20 million people out of poverty by 2020”.

This brief document sets out 12 ways the election candidates can make a real difference to ending poverty in Ireland and in Europe over the course of the next government.  These demands are intended to outline how the successful candidates in General Election 2011 can work to realise a positive and progressive role for Ireland in the European Union over the coming years. Ensuring that Ireland and its EU partners can secure a lasting legacy in the fight against poverty and social exclusion.

This document has been compiled as a result of ongoing consultations with over 250 EAPN Ireland members across Ireland and in collaboration with our partners in EAPN Europe, in Brussels.

For further information please contact:

Aine Walsh, Communications Officer, Tel: (01) 8745737, or

Anna Visser, Director EAPN Ireland, Mobile: 086 3854050

Given national funding restrictions, it is not surprising that groups are looking to explore what opportunities might exist to access EU funding in the coming years.  Many community and voluntary groups have expressed concern about the difficulties of understanding and availing of sometimes complex EU funding systems. This seminar is aimed at those individuals and groups. Speakers will recommend – from their own expert experience – strategies for engaging with EU funding, how to research and submit funding applications and influence EU policy-making.

EAPN Ireland is hosting a lunchtime resource seminar on Tuesday February 8^th on applying for EU funding opportunities.

EAPN Ireland is pleased to publish in conjunction with this seminar a resource guide to EU funding 2011.

Note to editors:

• Speakers will be available for interview on the day to discuss EU funding opportunities.

• Copies of EAPN Ireland’s resource manual on accessing EU funding are available.

For more information please contact:

Aine Walsh, Communications  Office, tel: 01 8745737 or,

Anna Visser, Director EAPN Ireland, Mobile: 086 3854050

Paul Ginnell, Policy and Support Worker with EAPN Ireland, stated that ‘while we know that the measures announced today will substantially increase poverty in the country we are demanding that the Government produce a detailed poverty impact assessment to explain the real impact of the decisions the Minister for Finance announced today. All they have published so far is a brief statement justifying what they had already decided to do’.

Budget 2011 includes increased tax on those on lower incomes, a reduction of €10 per week in all welfare payments apart from the state pension and a reduction of Child benefits by €10 per month with an additional cut of €10 for a third child. Also signalled is the €1 reduction in the minimum wage. All of these measures, alongside cuts to essential services have a direct impact on the most vulnerable which the Government has stated it is committed to protecting.

Statistics released last week by the Central Statistics Office ( CSO) for 2009 show that levels of consistent poverty rose from 4.2% in 2008 to 5.5% while the numbers unable to afford basic requirements went up by 25%.  This is even before the impact of cuts in Budget 2010 are taken into account. In addition to this CSO data shows that according to the Consumer Price Indexprices have risen by 2% in 2010. In light of these statistics the Government’s Budget will result in even greater poverty for people.

Mr Ginnell concluded that ‘as we come to the end of the 2010 European Year Against Poverty and Social Exclusion we must question the type of society that we are to become where even more people are being forced to live on the very margins of society. Alternatives proposed by organisations such as the Community Platform, TASC ,Claiming our Future and UNITE have been ignored’.

EAPN has also published a press release highlighting our initial response.

Summary of Communication

• The Platform proposes a common framework for action to deliver on the Poverty Target to reduce poverty and social exclusion by 20 million by 2020
• It will be delivered through 5 areas for action

1.     Delivering actions across the policy spectrum – ie mainstreaming and cross/departmental working on key policy priorities including active inclusion

2.     Greater and more effective use of the EU funds to support social inclusion – with a particular focus on Structural Funds and Research Framework, as well as PROGRESS

3.     Promoting evidence-based social innovation – backing social experimentation by Member States, with an new European initiative

4.     Promoting a partnership approach and social economy – involvement of relevant actors ( National, regional, local authorities, social partners and NGOs and PEP)  – supporting exchanges in thematic priority areas ( ie active inclusion, child poverty, Roma, homelessness and financial inclusion)

5.     Stepping up policy coordination between the Member States – ie continuation/reinforcement of the Social OMC – but  focusing mainly on inter-governmental cooperation.

For more information you can check out the Eurobarometer survey “Poverty and Social Exclusion” and the New Eurostat publication: Income and Living Conditions in Europe.

For further information please contact aine@eapn.ie