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One fifth of people in Ireland living below poverty line when housing costs are included

A new study has examined poverty risk in the context of the cost of housing.

ONE IN FIVE people in Ireland are living below the poverty line after their housing costs are factored in, according to a study from think-tank Social Justice Ireland.

The study estimates that the “real” number of people living in poverty here is 952,185, or just under 20% of the population, as the poverty rate when housing costs were excluded was 11.6%.

Some 41.6% of renters are at risk of poverty after housing payments, the study found. For households in receipt of rent subsidies, the poverty rate after rent payments is 59.1%.

The report, titled 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.

It also used data from the Central Statistics Office to determine where the poverty line was in Ireland last year. Weekly social assistance payments for single people, for example, were €83.51 below the poverty line, it said.

It also found that the urban-rural poverty gap widened last year: “Rural Ireland faces significant challenges in the areas of job creation and service provision for an ageing population.”

Social Justice Ireland said the country is experiencing an “affordability crisis”. Colette Bennett, an Economic and Social Analyst at the think tank, said that “far from supporting families out of poverty, housing subsidies are so inadequate as to be allowing greater numbers into it.

“One in five tenants in the private rented sector are 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.”

The report also detailed the issue of poverty risk among retirees. It said: “As housing becomes increasingly unaffordable, and the number of people renting into older age increases, it is important that adequate income is assured post-retirement.”

Social Justice Ireland has proposed an equity scheme for long-term mortgage arrears which would see the government pay the equity amount directly to the mortgage lender, decreasing the amount owed by the borrower.

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    Mute Me Darlin' Dublin
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    May 30th 2022, 6:07 AM

    Government parties will ignore this report with breath-taking arrogance.

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    Mute Bramley Hawthorne
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    May 30th 2022, 7:22 AM

    The greatest scheme of all is the private landlord subsidy scheme also know as FFGG.

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    Mute Burt Macklin
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    May 30th 2022, 3:25 PM

    @Bramley Hawthorne: As a private landlord I can tell you I get no subsidy whatsoever

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    Mute Liz O'Neill
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    May 30th 2022, 10:18 AM

    An article such as this is meaningless unless you clearly define what you see as ‘poverty’. In some countries its the lack of a family car or inability to afford a restaurant meal once a month. In others, it’s young children digging insects out of the ground to eat because they’ve not had a nutritious meal for weeks. At this stage, we all know that people’s finances are being drastically stretched in this country, that housing costs are ridiculous etc.. but there’s no harm in putting a sense of perspective on it. We are still amongst the most fortunate people on the planet.

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    Mute Noel Donohue
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    May 30th 2022, 10:21 AM

    @Liz O’Neill: Very true comment Liz

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    Mute Angela McCarthy
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    May 30th 2022, 10:49 AM

    @Liz O’Neill: That was very lazy of you Liz. You gave two extreme examples of what poverty might mean with only one applying to this country.

    Are you suggesting that in this ‘Most Fortunate Country’ children are not living/cramped in hotel rooms, lacking all the freedoms and facilities to play and do the things that other children can do?

    Are you suggestion that is this most fortunate country, we dont have children (let alone adults) begging and sleeping on the streets?

    Are you suggesting that in this most fortunate country of ours – that people are so lucky and fortunate, that they get the free choice whether to provide food or heating for their children.

    And of course because we are so fortunate in this country -everyone here are so well off that they can pay all their household bills on time in this massive juggle to survive. we are so fortunate in this country, that the sheriff, the moneylenders and banks, never bother people because of arrears or unpaid debts. Need I go on Liz?

    Yes Liz, you are dead right. Theres no poverty in Ireland because no one is eating insects out of the ground, sure we only did that in the 1840′s!

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    Mute Fergal McDonagh
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    May 30th 2022, 11:06 AM

    @Liz O’Neill: only some are fortunate.
    A very tone deaf response from you.

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    Mute Name Goes Here
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    May 31st 2022, 12:06 AM

    @Liz O’Neill: Whilst I agree with you, they should’ve given the definitions used, it’s only good journalism. Your examples are extreme and misleading you compare middle class and extreme poverty.

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    Mute Damien Leen
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    May 30th 2022, 8:05 AM

    Great little country!

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    Mute Noel Donohue
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    May 30th 2022, 8:21 AM

    The government is looking into it

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    Mute Locojoe
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    May 30th 2022, 9:08 AM

    I do not believe Social Justice Ireland figures.

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    Mute FiannaFáilness FineGaelness
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    May 30th 2022, 9:34 AM

    A @Locojoe translation: “I’m a Fine Gael voter”.

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    Mute Allora
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    May 30th 2022, 10:11 AM

    @Locojoe: OK that’s the position you take but do you admit there is a serious housing crisis in the country. I’m homeless 5 years now so I’ll have some insight.

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    Mute Angela McCarthy
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    May 30th 2022, 11:53 AM

    @Locojoe: I think you saw the words ‘Social Justice’ and instantly thought socialism. Take the blinkers off Joe – you sound a bit Loco!

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    Mute Neuville-Kepler62F
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    May 30th 2022, 9:00 PM

    Government (Taxpayer) should get an equity stake in Landlords houses for the subsidies paid directly to them in HAP and RAS ( over €1Billion a year). This applies for other state subsidies.
    Accumulating equity stake in these houses will increase the social housing stock over time.

    Social Justice Ireland note!
    HAP and RAS subsidies should ideally be abolished to reduce rents to their true market rate and consequently reduce the price of houses (14 times annual rent) to affordable levels.

    Ireland’s housing market is seriously screwed up. HAP & RAS don’t help.

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    Mute Robert Lumezi
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    May 31st 2022, 2:56 PM

    someone is making big money here…It s just wrong that rents are so high .

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