ESRI Criticises Budget as Insufficient to Tackle Poverty
Dublin: The Economic and Social Research Institute (ESRI) has raised concerns that a budget dominated by populist measures will not effectively address poverty in Ireland. According to the ESRI’s analysis, the withdrawal of key cost-of-living supports will exacerbate poverty, particularly among pensioners and individuals with disabilities.
The institute conducted an impact assessment of the last five budgets and concluded that, while the current budget offers modest benefits to average households, it falls short of reducing overall poverty rates in the country. The ESRI emphasised that linking benefits to inflation rather than adjusting them annually would have provided more sustainable relief for families.
The report highlights that temporary cost-of-living measures in previous budgets provided much-needed relief to many families. Without such measures, the poverty rate among vulnerable groups, including pensioners, could increase by up to 5%. One significant concern is the reduction in energy credits, which have been decreased from €450 to €250. This reduction will disproportionately affect households on fixed incomes, such as pensioners.
Dr. Kareena Doorly, an economist with the ESRI, noted that while the budget offers some benefits to small and average-income households, it will not have a meaningful impact on reducing overall poverty or child poverty. The institute also acknowledged the potential benefits of provisions like free textbooks and school meals, though these measures alone are insufficient to tackle poverty at a broader level.
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