Rising Inflation and Living Costs Drive More People into Poverty in Ireland—CSO Report
Dublin: Rising inflation and soaring living costs are driving more people in Ireland into poverty, while also eroding the real impact of income growth for average households, according to new figures from the Central Statistics Office (CSO).
The latest Income and Living Conditions Survey from the CSO reveals that disposable household income fell by €550 last year, with inflation offsetting any wage increases. The report highlights growing financial hardship among households, particularly for low-income and vulnerable groups.
Declining Household Income & Rising Poverty
The survey shows that the real disposable income of the average household dropped to €46,076 in 2023, marking a decline compared to the previous year. Although family incomes have increased nominally, inflation has eroded these gains, reducing overall purchasing power.
The number of people living in poverty also rose significantly, with 671,183 individuals now classified as living below the poverty line. This includes:
- 188,600 children under 18
- 143,600 people over 65
The report also found that chronic poverty—defined as individuals persistently living below the poverty threshold—rose from 4% in 2021 to 5.3% in 2022.
Alarming Increase in Poverty Rate
Ireland’s overall poverty rate increased from 11.6% in 2023 to 13.1% last year. The CSO notes that if financial supports provided during the COVID-19 pandemic had not been available, the poverty rate could have reached 20.5%.
One of the key drivers of rising poverty is the growing number of people unable to work due to long-term health conditions. The survey highlights that one-third of the unemployed are unable to work due to chronic health issues and are particularly at risk of poverty.
Additionally, other high-risk groups include:
- Elderly individuals living alone
- People in long-term rental accommodation
Dr. Seán Healy, Director of Social Justice Ireland, described the findings as deeply concerning, warning that the increasing poverty levels will further worsen the cost-of-living crisis for families already struggling financially.
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