Child poverty
Senator McCarthy highlights ESRI figures showing rising child poverty, particularly among families with young children once housing costs are included.
I will mention a recent ESRI report, published earlier this month, that describes how 200,000 children in Ireland are living below the poverty line. According to the report, when housing costs are taken into account, that brings the figure to over 260,000. This happened in a year when the average income went up by 4% and at the very top it went up by 7%. As Community Foundation Ireland recently said, "a rising tide does not lift all boats." The youngest children are hit the hardest. When we take into account housing costs, poverty in families whose youngest child is five or under has increased from 20% to over 26%, so that is one in four children. The ESRI has found that most parents are shielding their children by going without, but one in ten children are going without basic necessities that their classmates take for granted. I have brought this up many times in the House, but to have had 5,700 children on the emergency accommodation list in July was unforgivable.
The House will know I have worked in the homelessness sector for over 20 years and I have seen the necessity of food banks. I have seen families come down to our homeless café, the Lighthouse on Pearse Street. These are decent, ordinary families but they need to make ends meet, so we have to help them. I want to acknowledge the teachers, family support workers and homeless services that are holding these children up every day. However, we cannot make up an income gap. Only the Government can. The Government's target is to cut child poverty from the present 8% to 3% by 2030. The ESRI points out that at the moment, we are very far from that.
However, the ESRI has proposed a solution. It has suggested a means-tested second tier of child benefit. The ESRI says this would reduce child poverty more effectively per euro than increasing existing supports because many low-income families are not eligible to even take up the new increased supports. The budget is on 6 October, 13 days from now, so I ask the Leader to invite the Minister for Social Protection, Deputy Calleary, to the House before budget day to ask him if a second tier of child benefit will be considered in budget 2027. If not, what will get us from the current 8% to 3%? Last year's budget committed €681 million to cutting VAT on hospitality. I love a nice coffee and a nice toastie but it should never come at the expense of supporting children. A child who is five today will be nine in 2030, so childhood does not wait for the target.
Prosperity that skips children is not prosperity, it will just be a good average. I ask the Leader to consider that.