The number of children in households below the poverty line grew by almost a fifth in 2024, according to fresh research from the Economic and Social Research Institute (ESRI).

That was despite strong growth in average household income, which – when adjusted for inflation, household size and composition – rose by 4 per cent between 2023 and 2024.

Being below the poverty line is defined as having less than 60 per cent of median household income.

The ESRI said additional policy measures will be needed for the Government to meet its official child poverty target. It said a means-tested second tier of child benefit would “reduce child poverty more effectively, per euro spent, than increasing existing supports. This is because many low-income families with children are not eligible for – or do not take up – existing means-tested supports and so do not benefit from increases to these supports.”

The Government ran a public consultation on a targeted child payment and working-age payment earlier this year.

The ESRI report, published on Tuesday, is in partnership with Community Foundation Ireland and uses the latest data from the Central Statistics Office survey of incomes and living conditions.

The increase in child poverty was larger after housing costs were accounted for, rising by 23 per cent to 260,000 children.

The analysis also found that the Coalition was “very far” from meeting its target to reduce child poverty to 3 per cent by 2030. This target is defined as the share of children who are below both the poverty line, before housing costs are accounted for, and experiencing material deprivation, defined as an inability to afford two or more essential goods and services.

Using that definition, child poverty stands at 8 per cent, according to the ESRI.

“Additionally, this measure fails to capture a large number of children who experience material deprivation but [whose families] have incomes just above the poverty line, meaning it fails to capture many of those facing high housing costs,” it noted.

The rise in child poverty was particularly pronounced for families with young children, increasing from 21 per cent to 27 per cent for families with children up to age five when housing costs were accounted for but falling from 12 per cent to 10 per cent for those whose youngest child was above 11 years old.

Barra Roantree, assistant professor at Trinity College Dublin and a co-author of the report, said: “Our findings suggest that it is important to account for housing costs in the measurement of child poverty, something the Government’s official 2030 target does not do.

“Regardless of how it is measured, it is clear that new policy measures, such as a second tier of child benefit, will be needed if the Government is to come close to meeting this target.”

Community Foundation Ireland chief executive Denise Charlton added: “These findings provide the evidence that many children and families continue to face enormous challenges, even in times when, on paper, our country is rich. The harsh reality is that a rising tide does not lift all boats.”

Speaking on Tuesday morning, Taoiseach Micheál Martin acknowledged that the level of child poverty in Ireland was not acceptable. 

However, the Taoiseach said the report did not take into account the range of measures taken by the Government in the last three budgets, noting it was partially based on 2023 data. 

“The fact of the matter is last year’s child support payments were not incremental. There were record increases in child support payments.”

Martin also pointed out that free school books had been introduced in the last three years, hot school meals were now available in almost all schools and the Deis Plus programme had been introduced as had free GP care for children under nine years of age.

“A lot of that isn’t getting measured in the particular framework that was used (by the ESRI),” he told RTÉ radio’s Morning Ireland.

“We have to be absolutely adamant that we look after children in terms of access to education, access to housing, access to health care. Those are core fundamentals in terms of child poverty,” he said.

“We are focused on that. And I agree it’s too high. I’m not arguing with that.

“We’re working with all government departments to get all policies from all Government departments focused on reducing child poverty.”