Press release
Minister Joe O’Brien launches ESRI Research Report on Effect of Social Transfers and Deprivation in Ireland
From Department of Social Protection
Published on
Last updated on
From Department of Social Protection
Published on
Last updated on
Joe O’Brien, TD, Minister with responsibility for Social Inclusion, Community Development and Charities launched the ESRI research report ‘Social Transfers and Deprivation in Ireland: a study of cash and non-cash payments tied to housing, childcare and primary health care services’ today.
The Department of Social Protection is responsible for monitoring and reporting on poverty trends to inform anti-poverty and social inclusion policies and practice and to facilitate improved oversight of outcomes. To assist with this, the Department funds poverty and social inclusion research programmes; the most recent being with the ESRI on the measurement and analysis of household income and living conditions for the three year period 2017-2019. With the programme’s focus on household income and living conditions, the reports are primarily based on data from the annual EU Survey on Income and Living Conditions. In Ireland, this data is collected by the CSO and published on an annual basis.
As this most recent research report is based on 2017 data, it does not take into account the full impact of the Housing Assistance Payment (HAP) scheme or the National Childcare Scheme. Both of these were introduced in more recent years and are recognised by Government and the relevant stakeholders (including the voluntary sector) as being valuable supports for individuals and families. Nevertheless, almost 70% of households are in receipt of one of the transfers included in the study with almost 25% in receipt of two or more.
Speaking at the launch, Minister O’Brien commented:
“Reducing poverty and deprivation is a difficult challenge and we need to know what works for different people, different families, different households – there is no ‘one size fits all’ approach.
“This report gives us a valuable evaluation of the interaction between certain types of cash and non-cash transfers from the State and levels of deprivation, the effect that these supports have on those who need them most and the impact of these transfers in helping to reduce deprivation.
The Minister continued:
“While the data relates to 2017, its findings are relevant and of interest as we deal with the impact of COVID on our society and on employment in 2020. These challenges are in addition to those that existed in this country pre-COVID. We must remain focused on these challenges and continue to work on tackling deprivation and these poverty levels.
“This ESRI research provides us with the evidence and insight necessary to evaluate our strategies and to understand whether policy objectives are being achieved. It is also vital for us to know that the supports we put in place are reaching the people who need them most and are having a positive impact. It will help us build on our commitments in our Programme for Government ‘A Shared Future’ to combat disadvantage and promote social Inclusion.
Minister O’Brien also spoke of the Government’s Roadmap for Social Inclusion for which a Steering Group was recently established and is chaired by the Minister. The main aims of this Roadmap for Social Inclusion will be to work towards reducing the number of people in consistent poverty in Ireland to 2% or less, to increase social inclusion for people who are most disadvantaged, and to make Ireland one of the most socially inclusive countries in the EU.
The Minister added:
“The findings of the ESRI Research Report will provide key data in a number of areas that the newly established Social Inclusion Roadmap Steering Group, which I am chairing, will be considering in detail as part of our work.”
Ends.
There has been a decline in the total cost and number of recipients of housing transfers in recent years but an increase in the average value of housing transfers.
44% of the population receive some type of housing transfer with the majority receiving housing benefit (to help with heating/electricity costs etc). 3% of the population receive housing supplements designed to cover the cost of rent or mortgage interest payments. Supplement payments are higher than benefit payments but less prevalent. A small number of people receive both types.
Social Risk Group (SRG): People over 65 had the greatest access to housing transfers reflecting those transfers tied to older people. Working age adults were least likely to receive housing transfers. The mean value of transfers was highest for lone parents and people with a disability.
Social Class Group (SCG): The unemployed/never worked and lower social class groups were most likely to receive transfers.
Deprivation rates were higher for those in receipt of housing transfers both within their social risk group and social class group. This suggests that those experiencing deprivation are most likely to receive housing transfers.
Impact of transfers: The impact was greatest for lone parents and people with a disability (SRG) and unemployed/lower occupational groups (SCG). Lone parents and the unemployed/never worked group both saw an almost 6% decrease in their chance of deprivation after transfers were considered.
The focus was on holders of medical cards and GP visit cards.
Social Risk Group: Vulnerable social risk groups are more likely to receive a medical card compared to working age adults. The majority of children under 16 years of age in vulnerable social risk groups hold a medical card.
Social Class Group: Most people in the lower social class groups (including the unemployed) hold medical cards whereas most people in the middle and higher social class groups do not.
Medical cards are more common for those who are income poor, deprived or in consistent poverty, whereas the opposite holds true for those who are not.
Impact of transfers: the transfers reduce the predicted probability of deprivation but do not strongly differ by social risk or social class group.
Childcare use is lowest among deprived households compared to non-deprived households. However when considering the 3-5 year age group alone, participation rates are higher. Households experiencing deprivation cite fewer hours of childcare compared to non-deprived households.
Social Risk Group: Working age adults with children use the most hours of childcare while lone parents and people with a disability use least.
Social Class Group: Higher social class groups use more childcare whereas middle and lower social class groups use less.
Impact of transfers: childcare subsidies are associated with lower deprivation. Lone parents saw a fall of almost 3 percentage points in their chance of deprivation whereas unemployed households saw a fall of almost 4 percentage points.
Most respondents receive at least one transfer but it varies by social risk group and social class group.
Social Risk Group: 48% of lone parents receive 2 or more transfers with 40% of people with a disability in receipt of one. This compares to 70% of older people who receive one transfer.
Social Class Group: 39% of those in the highest social class group do not receive any transfer whereas those in the middle, low and unemployed social class groups are more likely to receive one.
Those in receipt of transfers have higher levels of deprivation with those receiving multiple transfers having the highest rates. This can be explained by the social risk, social class and financial wellbeing of the household.
Impact of transfers: Vulnerable groups benefit the most from transfers with the greatest effect where more than one set of transfers is received. Lone parents in receipt of 2 or more saw a fall of over 3 percentage points in their chances of deprivation.
The ESRI research report ‘Social Transfers and Deprivation in Ireland: a study of cash and non-cash payments tied to housing, childcare and primary health care services’ is available on the ESRI's website here.