The upward spiral in the cost of living may have now abated to less than 2 per cent per year but the cumulative 20 per cent jump since 2020 has a long tail. A spate of recent studies and reports have detailed how rising costs impose an unfair burden on the most vulnerable, with children bearing the brunt of it.
A study compiled by the St Vincent de Paul found that many families have been left struggling to make ends meet in the wake of the rise in the cost of everyday goods and services.
The income of a one-parent household which is dependent on social welfare supports – with a primary and second-level school-going child – only covers 82 per cent of their minimum needs as defined by the study. Many low-income families are dependent on in-work supports such as housing and childcare payments, even though family members are in employment.
Even in those households deemed above the poverty line – defined as having a disposable income above 60 per cent of the median – many children experienced deprivation, such as not having a warm home or a second pair of sturdy shoes. Almost one in five children fit into this category, says the Economic & Social Research Institute, which identifies housing costs, disability and lone parenting as drivers of what they term enforced deprivation.
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A report from the Children’s Rights Alliance finds that the number of children in consistent poverty in Ireland had increased by more than 45,000 in one year, bringing the total to over 100,000. Children are the most likely group in society to experience poverty, according to the alliance. The issue has also come to the attention of the Competition and Consumer Protection Commission which has written to primary and post-primary schools, outlining a series of recommendations aimed at cutting back-to-school costs. The CCPC cites research by the Irish League of Credit Unions that found two-thirds of families see back to school costs to be a significant burden.
The publication of these reports and studies on the cost of living and its impact on child poverty comes as the Government kicked off the Budget 2026 process this week at the National Economic Dialogue. It is probably not entirely coincidental.
The issue is clearly on the Government’s radar with the Taoiseach telling the dialogue meeting he has asked his Ministers to come up with measures that “will really make the difference to the most vulnerable families and children”. The Taoiseach has not ruled out the introduction of a second tier of child benefit payments – a measure supported by ESRI research – in the budget. He has cautioned that it is important to first determine if the current spike in child poverty is a temporary blip after a period of progress. That would seem most unlikely given the evidence to hand.
