Child Poverty increase an indictment of Government Budget decisions
Child Poverty increase an indictment of Government Budget decisions - The Labour Party
- Unacceptable to see 200,000 children in poverty in a country as wealthy as Ireland.
- Budget must include commitment to a targeted second rate of child benefit.
Labour Leader Ivana Bacik TD has condemned the large recorded increase in child poverty, saying it was the direct result of budget decisions made by Fianna Fáil and Fine Gael in recent years. She called for a commitment to the introduction of a targeted second rate of child benefit, as Labour proposed in the Party’s alternative budget last year.
Deputy Bacik said:
“The shocking figures on child poverty published today by the ESRI should be an urgent wake up call to the government on the need to change their approach to budget decisions, an approach which is leading to growing inequality. 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 report author has outlined that poverty rates have risen consistently since 2020 among families with young children. This finding is deeply concerning, at 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.
“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 €700m – 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.
“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.
“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.
“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.”