The overall poverty rate in Ireland increased from 11.6 percent before housing costs are included to 19 percent after housing costs are counted – an increase of almost 371,000 people.
This means that the real number of people in poverty is 952,185 – almost one in five of the total population, according to Social Justice Ireland’s latest study, titled ‘Housing Costs and Poverty 2022 ’, published recently.
“Far from supporting families out of poverty, housing subsidies are so inadequate as to be allowing greater numbers into it. The poverty risk of households in receipt of housing subsidies continues to be the highest of all occupancy types.”
“One in five tenants in the private rented sector is subsidised through the Housing Assistance Payment (HAP ); that does not include tenants in the Rental Accommodation Scheme or those on Rent Supplement. Yet despite huge Government spending on these subsidies, the need for additional rent payments, or “top ups” are driving increases in poverty. It is essential that Government increase spending on actually building social homes instead of relying on and subsidising a dysfunctional private rented sector,” Colette Bennett, Economic and Social Analyst, Social Justice Ireland, stated.
Housing Costs and Poverty 2022 analyses the impact of housing costs – mortgage interest and rent – on the poverty rates of various household types in 2021.
“Despite Government commitments to increasing social housing construction, increasing numbers of social housing tenants are forced to rent in the private rented sector. This latest study shows that renters are particularly hard hit – they are more than twice as likely to be at risk of poverty before housing costs are included than owner occupiers, and more than four times more likely after housing costs are included,” Ms Bennett said.
“Far from supporting families out of poverty, the inadequacy of housing subsidies as a social housing solution are so inadequate as to be driving greater numbers into it. Social Justice Ireland has consistently argued for the prioritisation of social housing delivery. This would put over 60,000 homes back into the private rented market, which would undoubtedly have a positive impact on market rents,” Dr Seán Healy, CEO, Social Justice Ireland, added.
Housing Costs and Poverty 2022 main findings included: (1 ) The overall poverty rate increases from 11.6 percent before housing costs are included to 19 per cent after housing costs are counted – an increase of almost 371,000 people, (2 ) Renters are the worst affected, with 41.6 percent at risk of poverty after housing payments, (3 ) For households in receipt of rent subsidies, the poverty rate after rent payments is 59.1 percent, (4 ) For households in Local Authority accommodation, the poverty rate after housing payments is 50.5 per cent, (5 ) Lone parents are the worst affected of all household types, with an increase in the poverty rate to 51 per cent after housing payments and (6 ) People living with a long-standing health problem are also severely affected, with a poverty rate increasing from 39.1 per cent before housing costs to 53.8 percent after.
