Children were going to school hungry, Independent TD Joan Collins told the Dáil.

“They are arriving at crèches with doughnuts or chocolate bars because that is what is on offer in the local shops,’’ she added.

She said some 729 children in 400 Dublin families had lost the roof over their heads, with families forced to live in hotel rooms.

Ms Collins said a recent Unicef report revealed the number of children experiencing poverty in Ireland increased from 18 per cent in 2008 to 28.6 per cent in 2012.

"We are now catching up on the United States, which has a disgraceful rate of 32.5 per cent and we have passed the UK rate of 25.6 per cent in child poverty,'' she added.

“The figures represent a damning indictment of global capitalism, given that such poverty can exist in the richest countries as a consequence of the inequalities that lie at its heart.’’

Ms Collins said that before the crash in Ireland, 18 per cent of children lived in poverty but inequality had increased dramatically due to the austerity enforced on ordinary families by the Government and the previous Fianna Fáil-led administration.

Taoiseach Enda Kenny said the situation inherited 3½ years ago was unprecedented in economic challenge. “A total of 250,000 jobs were lost. Virtually every house in the country was in negative equity.’’

Mr Kenny said there was disillusionment and disappointment and no hope. "Emigration and poverty stared many in the face. We have come a long way since that time and we still have quite a distance to travel, but the figures now emerging show an improvement in the situation for children and families all over the country.''