Child poverty a result of government decisions, says opposition

Labour Ivana Bacik has claimed that the largest recorded increase in child poverty is a “direct result of budget decisions made by Fianna Fáil and Fine Gael in recent years.

Bacik was speaking after new figures by the ERSI showed that 200,000 children are living in households below the poverty line.

The Dublin Bay South TD said that the upcoming Budget must right this wrong, and a targeted second rate of child benefit, which Labour called for in their Budget proposal last year, must be introduced.

Bacik said, “the cost of living crisis is forcing more families into hardship, while government targets their support and available resources at sectoral interests which shout loudest.”

“For a country as wealthy as Ireland, we should not tolerate seeing 200,000 children living in households below the poverty line. It is also important to note that these figures are from 2024, when significant once off supports were in place. The impact of housing costs is also deeply concerning. Costs have only increased further since as the housing crisis has deepened,” the Dublin Bay South TD stated.

The ERSI report outlined that poverty rates have risen consistently since 2020 among families with young children.

Bacik called the findings “deeply concerning,” especially as the government touts “a time of unprecedented economic growth and high employment.”

“Fine Gael and Fianna Fáil, the parties which have been in government together during that time, must accept responsibility for their failure on child poverty,” she said.

“For some time Labour has called for the introduction of a targeted second rate of child benefit, known as a child income support payment. We outlined our commitment to this last year, to be introduced instead of the 9% VAT cut. This targeted payment would go further than the current child support payment (CSP) and working family payments (WFP), ensuring that low and middle-income families currently excluded from additional supports would get the help they need,”

“Budgets are about choices. The reality is that this right-wing government made a political decision last year to provide an unnecessary tax cut to the hospitality sector, a decision that will cost around €700 million – roughly the same cost as that of the second targeted child benefit payment. Once again in the run up to this Budget, the government are overly focused on tax cuts, mostly for a privileged few,” Bacik said.

“Costs are rapidly rising for families. Public transport fares will increase by over 15%, while electricity and gas costs are steadily rising, with Airtricity announcing a 10% price increase last week,” she noted.

“Housing and grocery prices also continue to soar. Rising household costs will force more and more children into poverty. Excise reductions are holding down the price of petrol and diesel for drivers, but with 80% of our food imported, higher oil prices will drive up the cost of groceries, already at record highs.

The Labour leader said “this Budget must include targeted energy credits and a commitment to addressing child poverty. Critically, it must recognise that families with children are under increasing financial pressure and so it must include a broad mix of targeted and universal measures to support families and effectively tackle child poverty rates.”

Social Democrats TD Daniel Ennis said that “widening inequality is not inevitable – it’s a choice.”

The Soc Dems child spokesperson said

“Corporation tax has generated revenues of over €150 billion in the last decade, yet the benefits are not being felt equally. This is evident in my own area of Dublin 1, where you see billions running through the IFSC while local communities experience severe levels of poverty and deprivation just around the corner.”

“Based on these figures, it is difficult to see how the Programme for Government commitment to reduce child poverty levels to 3% by 2030 is going to be achieved,” Ennis noted.

Ennis criticised Taoiseach Micheál Martin for calling the ERSI’s methodology into question, and said that the Taoiseach was dismissive towards the idea of a second tier of child benefit.

“Child poverty is corrosive. It leads to diminished educational and social opportunities, compounded in later life by poorer employment prospects and health outcomes,” Ennis said.

“Make no mistake. These scandalous child poverty figures are the direct result of this government’s failure to protect one of the most vulnerable groups in society. It must be a priority in October’s budget,” the Dublin Central TD said.