Measuring poverty

The two methods used to measure poverty.

Consistent poverty

This is based on the number of people who experience deprivation in relation to a number of defined items, such as the lack of a winter coat or a second pair of shoes.

The current rate of consistent poverty in Ireland is estimated to be 6.8 per cent. This form of measurement is favoured by the Government.

Relative poverty

This measures how many people have a disposable income smaller than 60 per cent of a particular country's middle point. For example, if 21 people out of 100 in Ireland have an income smaller than 60 per cent of the country's median, the "risk of poverty" rate is 21 per cent. This form of measurement is favoured by the EU and many NGOs.