The proportion of the population living in poverty remains essentially unchanged after five years of boom, writes Maev-Ann Wren.
The richest 10 per cent of the population received 25 per cent of the budget giveaways during the five years of this Government, while the poorest 20 per cent received under five per cent, new analysis from the Combat Poverty Agency reveals.
The State agency has produced a challenging commentary on the Government's priorities following its analysis of the five budgets from 1998 to 2002. Ireland, it says, "is amongst the most unequal countries in the EU, with one of the highest rates of relative income poverty".
The Government's budgets have left relative income poverty virtually unchanged with 20 per cent of households living on incomes below 50 per cent of the average and 9.5 per cent living in "severe poverty" on incomes below 40 per cent of the average, according to the agency. This finding will be unwelcome news for the Government which has trumpeted its achievements under the National Anti-Poverty Strategy.
The NAPS was initiated by the Rainbow Coalition and seeks to reduce "consistent poverty" or the number of poor households experiencing basic deprivations of food, heating and clothing. Measured in this way, poverty has decreased. However, when measured in terms of relative income and consequent social exclusion, poverty has remained essentially unchanged "placing Ireland in the top half of the EU poverty league", according to Mr Jim Walsh, the CPA's head of research.
The agency has commented that the most recent budget which favoured households on low incomes "stands in stark contrast to the previous four budgets, where middle and higher income groups were the main beneficiaries". Families on welfare still receive less than they need to rear children. At €44 per week, this is "over €4 less than the basic costs of a child".
After the budget some commentators who assessed the Minister for Finance's record concluded he had not favoured the rich because in proportionate terms he had given greater tax relief to the lower paid. This is not supported by the CPA after an in-depth assessment of the income tax and social welfare changes.