There is a “real danger of deepening poverty” and worsening inequality, unless Government measures to address increasing living costs are adequate, experts warn.
The Society of St Vincent de Paul is seeing people in homes with “literally no power”, forced into such choices as between heating or eating, or between attending hospital appointments and getting children to school.
Tricia Keilthy, social policy officer with the society, said people on pre-pay meters who used to get a week's power for €20 to €30 were now getting just three days' worth.
“Our volunteers are getting to people in houses with literally no power, who are sitting in the cold, with candles, unfortunately quite regularly. It is very, very, very tough at the moment.
“In rural areas where people have to rely on a car, we are seeing choices being made about which essential trip they will make. The priorities are to get the kids to school, get to work, get to the shops, so we see people putting off going to hospital appointments.
‘Stark choices’
“Parents regularly put their own needs behind those of their children, so put off going to the doctor until they have the means to. Single parents are really struggling. Disabled people who need more heat are struggling.
“There is a real danger we are going to have a deepening of poverty if that package of supports that the Government is putting together is insufficient,” said Ms Keilthy.
Joana de Silva, chief nutritionist with Safefood and an expert in food poverty, said there was “always a concern” when families’ incomes were under pressure, they “make stark choices”. Food was “often the only element in a household budget you can cut back on. We know poorer households eat less well and have higher levels of excess weight, with other health impact like type 2 diabetes.” Food poverty led to social isolation, with adverse implications for mental health.
Barra Roantree, economist with the Economic and Social Research Institute, said: "We know this bout of inflation is disproportionately affecting lower-income and older households" driven primarily by rising fuel costs.
Citing Central Bank figures published in November, showing inflation was running at 5.4 per cent for the lowest-income fifth of households and about 4.6 per cent for highest-income households, he said this was “because lower-income households spend a larger share of their total income on heat and energy”.
He said economic growth in recent years had been “inclusive”.
“There is a risk of higher inflation undoing some of the gains [in lessening inequality] we have made in recent years”. he said.
Any Government intervention should be "timely and targeted" said Dr Roantree, suggesting a "once-off bonus to welfare recipients" similar to the Christmas bonus, to be timed to coincide with bills.
According to Dr Keilthy: “It is essential core social welfare rates are increased. The immediate need is to at least match inflation with core social welfare rates.
“We’d also like to see an increase in the supports for families in receipt of the working family payment. This crisis underlines where the deficits are in our social protection system and why it needs to be benchmarked against the real costs households are faced with.”
She welcomed the ideas of a utility hardship fund and a rent arrears fund, to be Government-funded and available either through community welfare officers, or utility providers.
