Relative Poverty Rates
Overview
The National Anti-Poverty Strategy (NAPS) offers the following definition of poverty:
People are living in poverty, if their income and resources (material, cultural and social) are so inadequate as to preclude them from having a standard of living, which is regarded as acceptable by Irish society generally. As a result of inadequate income and resources people may be excluded and marginalised from participating in activities which are considered the norm for other people in society.
At risk of Poverty/Relative Poverty
People or households are considered to be at risk of poverty when their income is less than a particular threshold. In the EU, the threshold has been set at 60% of the median income (mid-point in the scale of the highest to the lowest of all incomes in Ireland). Between 2009 and 2010, average disposable income dropped from 23,326 to 22,168 causing the at risk of poverty threshold to drop by more than 10% from 12,064 in 2009 to 10,831 in 2010.
Whether persons below the 60% threshold are actually experiencing poverty will depend on a number of factors. These include:
- The degree to which income is below the relevant thresholds;
- The length of time on this relatively low income – a long period can lead to real deprivation, as a person’s assets run down and cannot be fully maintained or replaced;
- Possession and use of other assets, especially one’s own home.
At Risk of Poverty Statistics
- Even though the at risk of poverty threshold (explained above) decreased by over 10% between 2009 and 2010, the at risk of poverty rate increase from 14.1% in 2009 to 15.8% in 2010.
- Children (aged 0-17 years) were the most at risk group in Ireland with an at-risk of poverty rate of 19.5%, up from 18.6% in 2009.
- In 2010 the at risk of poverty rate for lone parent households was above 20%.
- In 2010 the at risk of poverty rate in monetary terms was 10,831.
- Social Transfers (e.g. pension, unemployment benefit) are very effective tools for reducing poverty. In 2010 the at risk of poverty rate would have been 51% without social transfers. If we include ONLY old age and survivors benefit the at risk of poverty rate would have been 39.7%.
Poverty and Socio-Demographic Characteristics
While in previous years overall poverty rates had been consistently decreasing, between 2009 and 2010 these figures increased. The at risk of poverty rate rose from 14.1 to 15.8%, the consistent poverty rate rose from 5.5 to 6.2% and the deprivation rate rose from 17.1 to 22.5%. Household composition and socio-demographic characteristics, however, maintained a very significant influence on the risk of poverty. The Central Statistics Office has devised a series of indicators that are considered significant in determining whether a person is at risk of poverty such as age, employment status, number of dependents, level of education and tenure status.
In 2010 the at risk of poverty rates for people living in rural areas, single parents, people with low levels of education, children and the unemployed remained consistently high. Notable however in the 2009 to 2010 period was the increase in at risk of poverty rates among people of working age, the employed, people with higher levels of education, home owners and people renting at the market rate. The 2009 to 2010 period also saw the at risk of poverty rates increase more for women than men.
At Risk of Poverty Rate by Household Composition
|
Household Composition |
At Risk of Poverty Rate 2009% |
At Risk of Poverty Rate 2010% |
|
1 adult aged 65+ |
9.5 |
9.4 |
|
1 adult aged <65 |
23.2 |
19.7 |
|
2 adults, at least 1 aged 65+ |
9.6 |
9.4 |
|
2 adults, both aged <65 |
10.0 |
12.9 |
|
3 or more adults |
10.1 |
10.3 |
|
1 adult with children aged under 18 |
35.5 |
20.5 |
|
2 adults with 1-3 children aged under 18 |
11.4 |
17.2 |
|
Other households with children |
16.1 |
21.2 |
Poverty Rates by Demographic Characteristics and Year
|
|
At Risk of Poverty Rate 2009% |
At Risk of Poverty Rate 2010% |
|
Sex |
|
|
|
Male |
14.1 |
15.7 |
|
Female |
14.1 |
15.9 |
|
Age Group |
|
|
|
0 – 17 |
18.6 |
19.5 |
|
18 – 64 |
13.0 |
15.3 |
|
65+ |
9.6 |
9.6 |
|
Principal Economic Status (aged 16 years and over) |
|
|
|
At Work |
5.5 |
7.8 |
|
Unemployed |
24.8 |
26.1 |
|
Student |
25.9 |
24.0 |
|
Home Duties |
19.1 |
20.3 |
|
Retired |
9.6 |
9.0 |
|
Not at Work due to Illness or Disability |
21.7 |
20.9 |
|
Highest education level attained (aged 16 years and over) |
|
|
|
Primary or Below |
18.6 |
17.8 |
|
Lower Secondary |
19.7 |
19.8 |
|
Higher Secondary |
12.8 |
15.7 |
|
Post Leaving Cert |
9.1 |
13.2 |
|
Third Level Non-Degree |
4.9 |
8.6 |
|
Third Level Degree or Above |
4.8 |
7.8 |
|
Numbers of People at Work |
|
|
|
0 |
31.4 |
27.5 |
|
1 |
12.2 |
17.7 |
|
2 |
3.8 |
4.2 |
|
3+ |
1.1 |
3.1 |
|
Tenure Status |
|
|
|
Owner Occupied |
10.1 |
13.3 |
|
Rented at the market rate |
16.5 |
21.3 |
|
Rented at below the market rate or rent free |
31.7 |
23.9 |
|
Urban/rural location |
|
|
|
Urban areas |
11.8 |
13.1 |
|
Rural areas |
17.8 |
20.0 |
Statistics Office, Survey of Income and Living Conditions (SILC) 2010.
Full document available on the Central Statistics Office website: www.cso.ie
