New measure of poverty needed amid affluence
Wednesday December 10 2003
If accepted by the Government, the new definition could have a significant effect on how it tackles social deprivation.
The report by the Economic and Social Research Institute (ESRI) shows that income levels for poorer people have risen faster than the cost of living, although they did not keep pace with the rise in average income between 1994 and 2001.
The study, 'Monitoring Poverty Trends in Ireland', demonstrates that the percentage of people living on less than half the average income has more than doubled since 1994 - rising from 6pc to 12.6pc in 2001.
The percentage of people living on less than 60pc of average income has increased by almost half over the same period, from 15.6pc to 21.9pc.
However, the study reports that the number of people living in 'consistent poverty' has decreased dramatically - down from 15pc of all households in 1994 to 5pc in 2001.
Consistent poverty is defined as living on less than 70pc of average income, where some other indicator of deprivation is present.
Such indicators include not owning two pairs of strong shoes or a warm coat, or going without a proper meal at some point during the week.
The current definition of consistent poverty was introduced by the ESRI in 1987 and it is now recommending that this be changed to reflect the much higher overall standard of living that exists as a result of the economic boom.
It says that consistent poverty should now also include such indicators as an inability to afford a one-week annual holiday or to have friends or family over for a meal once a month.
If the new definition was used, then the percentage of people in consistent poverty would instead stand at 10.9pc.
The ESRI's Chris Whelan defended the new definition, saying that expectations of what is considered "a reasonable standard of living" change over time.
Richard Layte of the ESRI said it would be a "worry" if the income gap between different social groups in Ireland continued to widen.
It would have consequences for health and also crime as some people felt unable to participate fully in society, he said.
The report shows that the group of people most likely to have to live on 50pc or less of average income are pensioners, particularly women on non-contributory pensions.
- David Quinn Social Affairs Correspondent
