Nearly 300,000 people in Ireland, including 10 per cent of all children, are still living in consistent poverty, according to a new report from the Combat Poverty agency.
Consistent poverty is defined as living on a low income and being deprived of one or more basic necessities such as adequate food, clothes or heating.
In its annual report, published today, Combat Poverty said although there has been significant progress in tackling inequality in Ireland in the past decade, around 290,000 people were in need of help.
The agency's annual report also cites EU data shows showing that 26 per cent of children in Ireland were living in homes with "relative income poverty" - the second highest in the EU, just behind Portugal at 27.5 per cent and equal with Spain. The figures from 2001 are the latest EU comparative data available.
Although poverty was not as evident as it was in times of long dole queues and mass emigration, it was still a major problem, often hidden from view, the CPA said.
"Often multiple factors such as poor physical or mental health, educational disadvantage, low self-esteem and limited access to quality services distinguish rich from poor," said CPA acting director Kevin O'Kelly.
Mr Kelly also said that Ireland's wealth was one of the most "unequal" of the EU member states. The worst affected are those who are not in a position to work, such as older people; carers; lone parents; children; long-term unemployed and people who are sick or disabled, Mr O'Kelly said.
He said the agency was growing increasingly concerned about levels of disparity in education levels, which recent research had highlighted as growing worse.
The cost of education for parents on low incomes was a key example, he said. It has been estimated that parents with three primary-school children face costs of up to €500 a year for school books, which usually cannot be reused, Mr O'Kelly said.
Social and Family Affairs Minister Martin Cullen TD, who made his first appearance alongside the agency, said: "This is a major issue for all of us at the Oireachtas."
He refused to be embarrassed by Ireland's low public spending ranking alongside other EU states because the data used was not sympathetic to the country's demographic, he said.
Ireland's relatively young population meant there were fewer elderly to pay pensions for, which impacted on social expenditure, he said.
Nordic states such as Finland, Norway and Sweden, which topped public services expenditure rates, "paid a price" for their welfare systems, he said, referring to the higher tax rates.
The Government has committed to a framework to eliminate poverty by 2016, which included €50 billion in spending to help achieve 150 goals and targets listed in the National Action Plan on social inclusion.