The annual Socio-Economic Review for 2008, published by CORI Justice, shows that the number of people at risk of poverty has fallen by 120,000 since 2001.  However, almost three quarters of a million people still live in households with incomes below the poverty line.

In its 233 page review, entitled Planning for Progress and Fairness, CORI Justice also shows that thirty per cent of all households at risk of poverty are headed by a person with a job - these are the 'working poor' – a new phenomenon that should be addressed urgently.   

The failure by Government to address the ‘working poor issue’ is a serious indictment of how the resources available throughout the Celtic Tiger years were used.

After a period of great national prosperity, it is clear that many have benefited little from the boom times.  Despite the huge economic growth of recent years Ireland is a long way from being a society characterised by fairness, equality and wellbeing according to CORI Justice.

The latest data show that 720,774 people (17% of the total population) have incomes less than the standard poverty line recognised by the European Commission and the United Nations.  In 2008 this line is equivalent to €11,400 for a single person and to €26,400 for a household of 4.  The number of people with incomes below that level is 120,000 fewer than was the case in 2001 when 21.9% of the population was at risk of poverty.  This reduction is welcome but far more needs to be done to ensure every man, woman and child in Ireland has sufficient income to live life with dignity according to COR Justice.

The CORI Justice annual Socio-Economic Review provides a detailed analysis of the people whose incomes are below the poverty line.

• Almost 30% of all households at risk of poverty are headed by a person with a job. These are the 'working poor'.  
• 50% of all households at risk of poverty are headed by a person outside the labour force (i.e. they are elderly, have a disability, are ill or in caring roles that pevent them from taking up a job).
• Less than 15% of all households at risk of poverty are headed by a person who is unemployed.
• More than 20% of all children in Ireland are at risk of poverty.

• Change the tax system to ensure that the working poor benefit from the full value of the tax credit to which they are entitled. (This requires that tax credits be made refundable). This initiative was supported by ICTU in its Pre-Budget Submission for Budget 2008.  
• Ensure the lowest welfare rate for a single person is maintained at 30% of gross average industrial earnings.
• Bring the welfare rate for the second adult in a household up to 100% of the single adult payment (from its current situation of 67%).
• Address child poverty and child care problems by increasing child benefit and/or increasing the Early Childhood Supplement.  This could also be addressed by introducing a refundable tax credit payable for all children irrespective of the labour force status of their parents.

The failure by Government to address the issue of poverty is a serious indictment of how the resources available throughout the Celtic Tiger years were used according to CORI Justice. It is time that Irish policy-makers took the initiatives required to dramatically reduce the number of people at risk of poverty and developed the services in areas such as education, health and accommodation to ensure that all can live life with dignity.

Establishing Priorities

In this Socio-Economic Review CORI Justice states that in any country the list of potential reforms is extensive. Consequently, it is always necessary to rationally decide on a set of worthwhile priorities which should be pursued. Making these choices is difficult; no country can do all it wishes to do. However, at present CORI Justice believes that the following should be adopted as national priorities in the process of addressing inequality (cf pages 5ff):

• Addressing the social provision deficit
• Reducing poverty to EU-average levels
• Minimising social exclusion
• Building a fairer tax system
• Adopting standard fiscal planning methods
• Developing long term planning
• Shifting policy to target growth in per capita national income
• Developing a rights-based approach

Each of these priorities is developed in detail in the Review (pages 6-18).  In the Review CORI Justice outlines what this agenda would entail and how through making sensible choices Ireland can plan for progress and fairness. Throughout the Review CORI Justice addresses a range of issues including:

Income - including poverty issues (pages 22ff); Taxation (pp. 65ff);   Work (pp. 98ff);   Public Services (pp. 112ff);   Housing and Accommodation (pp. 119ff);   Healthcare (pp. 137ff);   Education (pp. 151ff);   Migration and Intercultural Issues (pp. 162ff);   Participation (pp. 169ff);   Sustainability (pp. 176ff);   Rural Development (pp. 194ff);   The Developing World (pp. 205ff).  The full review can be accessed from www.cori.ie/justice