Rising Costs and Hidden Poverty: Struggling Irish Households Revealed
A new report from the Economic and Social Research Institute (ESRI) paints a concerning picture of income poverty in Ireland. While average incomes may seem sufficient, a large portion of the population is struggling to cover their basic needs.
Who’s Most Affected by Income Shortage?
The study, conducted in collaboration with the Department of Social Protection, revealed that lone parents, households with children, single working-age adults, and renters are the most vulnerable groups facing an income shortfall. These households find it hardest to meet essential expenditures like food, clothing, and housing.
Hidden Costs: Housing Takes the Biggest Bite
The report highlights the disproportionate impact of housing costs on disposable income. In 2022, the average Irish household needed 45% of its disposable weekly income (after housing costs) to cover basic needs. However, this figure varies significantly across housing situations.
Owner-occupiers required between 38% and 42% of their income, while tenants in private accommodation needed a staggering 56%. Unsurprisingly, those receiving rent subsidies faced the greatest challenge, needing a whopping 84% of their income to meet basic needs.
1 in 10 Irish Citizens Live Below Their Means
The survey paints a bleak picture of income insecurity in Ireland. An alarming 11% of individuals do not live in households that meet their expenditure needs. This means millions of people are constantly struggling to make ends meet.
” Although most people live in households that meet their expenditure needs, a higher proportion of children, tenants, lone parents, and single working-age adults do not,” stated Bertrand Maître, co-author of the report. “The study highlights the issue of housing and the need for adequate housing support for many tenants.”
Government Response: A Step in the Right Direction?
The Department of Social Protection acknowledges the ongoing issue of income poverty and emphasizes the efforts made through Budget 2025 to address it. They point to the largest social welfare package in the history of the State, including a cost of living package aimed at providing additional support to households.
However, experts and advocacy groups argue that more needs to be done to tackle the root causes of income inequality and ensure a secure income for all Irish citizens.
Want to learn more about how to combat income poverty in Ireland? Visit the ESRI website and explore their comprehensive report.