Home Poverty Relative Poverty Rates

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). 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

  • In 2008, 14.4% of the population were at risk of poverty.
  • Children were the most at risk group in Ireland with an at risk of poverty rate of 18%
  • Lone Parent Households were the most at risk household group with an at risk of poverty rate of 36.4%
  • The 2008 at risk of poverty rate in monetary terms was 12,455.
  • Social Transfers (e.g. pension, unemployment benefit)  are very effective tools for reducing poverty. The chart below shows that without social transfers, over 40% of children and nearly 90% of over 75s would be at risk of poverty.

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Poverty and Socio-Demographic Characteristics

Household composition and socio-demographic characteristics have a very signigicant influence on the risk of poverty. While overall poverty rates are decreasing (and have been for many years) there is considerable variation in the at risk of poverty rate for different types of individuals and households. The Central Statistics Office has devised a series of indicators that are considered significant in determining whether a person is at risk of poverty (cso 2008).

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at-risk-of-poverty-rate-by-household-composition

The Chart above shows at risk of poverty rate in 2008 by household compositon (cso 2008).


At Risk of Poverty Rates In Ireland Summary Table

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