Budget 2025 Ask #3 - Lifting People Out of Poverty: Benchmarking Social Welfare and Resourcing the Roadmap for Social Inclusion

Poverty remains one of the most significant challenges facing Ireland today. According to the Central Statistics Office (CSO), more than 560,000 people are at risk of poverty, and over 900,000 are living in enforced deprivation. These figures paint a stark picture of a worsening crisis, with over 200,000 more people lacking basic necessities compared to 2021. 

Vulnerable groups, including lone parents and people unable to work due to health issues, are disproportionately affected, with nearly half of these populations living in enforced deprivation. Renters, too, are more than four times as likely to experience deprivation compared to homeowners.

Addressing this crisis requires a comprehensive approach, focusing on both income support and access to essential services. In this context, Budget 2025 presents a crucial opportunity to implement meaningful change and lift people out of poverty.

Benchmarking Social Welfare for Adequate Support

One key solution to combatting poverty is ensuring that social welfare payments are aligned with the cost of living and reflect the realities of those at risk. In 2022, the Select Committee on Budgetary Oversight published its report on the Indexation of the Taxation and Social Protection System, recommending a system of benchmarking social welfare payments. This move has long been advocated by numerous organisations in the community and voluntary sector and is supported by The Wheel.

Benchmarking social welfare payments would ensure that those who rely on state support, particularly those most vulnerable to poverty, receive adequate assistance. To make this a reality, The Wheel proposes the establishment of a cross-sectoral benchmarking working group. This group would collaborate with experts, community organisations, and government departments to design a system that guarantees sufficient income for those most at risk of falling into poverty.

However, lifting people out of poverty is about more than just income support. It requires a holistic approach that ensures access to affordable and sustainable public services.

Resourcing the Roadmap for Social Inclusion 2020-2025

The Roadmap for Social Inclusion 2020-2025 was developed to address persistent poverty and social exclusion. Its goal is to reduce the number of people experiencing consistent poverty and to promote greater social inclusion across Ireland. The roadmap takes a cross-departmental approach, acknowledging that poverty is a multifaceted issue that demands coordinated action across various sectors—health, housing, education, and social protection.

However, while the intentions behind the roadmap are commendable, the actions outlined do not go far enough in achieving its stated aims. To ensure the roadmap meets its goals, an independent review—co-designed with frontline organisations working directly with people experiencing poverty—should be conducted. This review would provide valuable insights and guide the government in reshaping the roadmap's actions to be more ambitious and effective.

Budget 2025 should commit to adequately resourcing this renewed roadmap, prioritising impactful actions that will lead to real change for those living in poverty and deprivation. Without sufficient resources, the roadmap risks becoming another well-meaning policy document that falls short of delivering real improvements in people's lives.

Supporting Community Development Outreach

Community and voluntary organisations are at the forefront of the fight against poverty. One in twelve Irish charities is dedicated to addressing poverty or economic hardship, while many others provide essential supports to people on low incomes through health, housing, child and family services, and community development programmes. These organisations are working tirelessly to support the most vulnerable, but they face significant challenges in doing so.

Underfunding remains a persistent issue for the community and voluntary sector, with frontline services being asked to do more with less. This has led to a recruitment and retention crisis, as salaries for staff in the sector fail to keep pace with public sector counterparts. Research conducted by TASC, commissioned by The Wheel and published in 2023, highlighted a negative pay disparity of close to or above 10% for many charities, putting the very sustainability of vital public services at risk.

The sector’s contribution is indispensable. Organisations working in housing and homelessness, addiction, disability support, and services for older people and low-income families are providing a lifeline to those most affected by poverty and deprivation. Yet, without adequate funding, these services will struggle to meet the growing demand. As deprivation worsens, it is essential that the government recognises the value of these organisations and ensures they are properly resourced.

A Call for Increased Investment

To effectively address the impact of poverty, Budget 2025 must include increased investment in community development outreach programmes. The Wheel proposes an additional €1 million in funding for these programmes. This investment would allow community organisations to expand their reach and continue to provide critical supports to those most at risk of poverty and deprivation.

Lifting people out of poverty is not just about improving individual incomes—it is about building a society where everyone has access to the resources and opportunities they need to thrive. By benchmarking social welfare, resourcing the Roadmap for Social Inclusion, and increasing investment in community development, Ireland can take significant steps towards reducing poverty and creating a more inclusive, equitable society.

Now is the time for action. Budget 2025 must prioritise the fight against poverty and give those at the margins the support they need to build a better future.

The Wheel’s Pre-Budget 2025 submission is available HERE