Welfare increases are beginning to help loosen the grip of poverty on some sections of society, writes Carl O'Brien
After years of pouring billions of euro into increased welfare supports, entitlements and pensions, there are signs that these spending increases are beginning to make a real impact.
Pensions increases pushed thousands of older people over the income threshold used to determine whether a person is at risk of poverty or not. Welfare rises, too, helped loosen the grip of poverty over greater numbers of lone parents, chronically ill and disabled people.
It's not before time. Last year the cost of welfare supports accounted for around €14 billion, or around one in every three euro of public expenditure.
Tax and welfare benefits in the most recent budgets have been benefiting the poor more than the rich. This is in contrast to the budgets of the late 1990s, when economic growth was at its strongest, when the richer sections of the population benefited disproportionately.
While the signs are encouraging, the figures are hardly a reason for Government to feel complacent over the long-term battle against deprivation.
The results show Ireland is still a divided society with a growing polarisation in income levels between rich and poor and where poverty still exists on a frightening scale.
The reality of life on the breadline is being unable to buy a winter coat, going without heating in the house, being unable to afford a substantial meal, and living with everyday household debt problems. Yesterday's report showed no major budge in the numbers experiencing this kind of deprivation. In fact, the figures increased slightly from 6.8 to 7 per cent of the population.
Yesterday's figures also show the proportion of people who are working and at risk of poverty - the "working poor" - has increased from 15 to 16 per cent.
They are a group who qualify for almost nothing but pay for everything. Outside of the income thresholds for benefits such as back-to-school allowances, rent allowance or medical cards, they are exposed to the full brunt of cost increases.
Child poverty is of particular concern because of its effects on children's health, chances of completing education and future opportunities. While children account for just over one-fifth of the population, new figures show they account for more than one third of persons in consistent poverty.
What is clear from yesterday's figures is that targeted welfare increases are working and our most recent redistributive budgets are helping. But the multiple barriers facing those in consistent poverty - lack of childcare, access to training and education, poverty traps - also need to be dismantled.
The evidence from many of our European neighbours is that substantial poverty reduction can be achieved through radical anti-poverty measures and increased spending on this kind of social support. However, despite major spending increases, we still have one of the lowest levels of social protection expenditure in Europe. Until this changes, we are unlikely to make more dramatic inroads in reducing the number of consistently poor.