Child poverty in Ireland requires more than direct payments, according to a new OECD report. The international organisation says governments must combine measures that help parents remain in or enter employment with reliable income support and affordable public services.
Breaking News: OECD sets out three-part approach
The report comes as reducing child poverty remains a major Government commitment and ahead of the publication of Ireland’s Budget 2027 measures. Its central message is that no single intervention can address the causes and consequences of poverty experienced by children.
Instead, the OECD identifies three connected priorities:
- Helping parents access and stay in work while managing caring responsibilities
- Providing adequate and dependable income support
- Ensuring families can use affordable, high-quality services
The organisation examined not only how much countries spend on children, but how that money is allocated. It said the strongest outcomes are likely to come from investment in policies that directly improve children’s lives and family stability.
Why child poverty remains a major Ireland issue
Recent figures from the Economic and Social Research Institute found that about 200,000 children in Ireland lived in households below the poverty line in 2024. That represented 17.4 per cent of children and was almost 30,000 higher than the previous figure cited in the report.
The poverty threshold used in the analysis is less than 60 per cent of median household income. Falling below that level can affect a family’s ability to meet everyday costs, including housing, food, childcare, transport, healthcare and education-related expenses.
The OECD links child poverty with poorer outcomes across several areas of development. These include health, cognitive development and emotional wellbeing. It also warns that the effects can last into adulthood, influencing employment prospects and earning potential.
- The OECD says child poverty needs a combined policy response.
- Work, income support and public services are identified as the three core elements.
- About 200,000 children in Ireland were below the poverty line in 2024, according to ESRI research cited in the report.
- Affordable childcare, parental leave and flexible work are among the measures highlighted.
Supporting parents to work and care
A major focus of the OECD analysis is helping parents reconcile employment with family responsibilities. The report points to paid parental leave, flexible working arrangements and affordable early childhood education and care as important supports.
These measures can make it easier for parents to take up employment, increase their working hours or remain attached to the labour market after having children. The report also identifies training and job-search assistance as tools that can help parents access work.
However, the emphasis on employment does not mean income supports are unnecessary. The OECD says lower-income families need dependable assistance alongside fair pay and good working conditions. A minimum wage that provides adequate support, combined with access to social protection, can help reduce financial insecurity.
Public services are part of the solution
The report also calls for affordable, quality public services, particularly in health and housing. Families may remain at risk even when a parent is employed if rent, childcare, medical costs or transport consume too much of the household budget.
Access to services can therefore affect living standards in ways that are not fully captured by income alone. Secure housing, timely healthcare and early education can reduce pressure on parents while improving children’s development and future opportunities.
The OECD’s argument is that policy should be viewed as a connected system. Employment supports will have less impact if childcare is unavailable, while income payments may not be enough if housing and essential services remain unaffordable.
Economic consequences extend beyond households
Child poverty is not only a social policy concern. The OECD describes it as an economic drain because childhood disadvantage can contribute to lower productivity, reduced tax revenues and increased public spending over a person’s lifetime.
By contrast, reducing child poverty could produce economic gains through higher employment, improved earnings and stronger tax receipts. The report presents early intervention as an investment that may benefit both families and the wider economy.
It also notes that overall social spending across OECD countries has increased substantially since 2006, rising from roughly 20 per cent to 25 per cent of gross domestic product and by almost two-thirds per person. Much of that growth has been driven by ageing populations and healthcare costs, while spending focused specifically on families with children has remained comparatively modest.
What happens next in Ireland?
The report adds to the policy debate ahead of Budget 2027, when decisions on taxation, welfare and public spending will shape the support available to families. The key question is whether new measures can address the combination of employment barriers, household income pressures and the cost of essential services.
For families, the practical impact will depend on how policies are designed and delivered. Childcare availability, access to housing, wage levels and the interaction between work and welfare payments will all influence whether support reaches those who need it most.
The OECD’s findings suggest that progress will require sustained coordination rather than a short-term measure. Government departments responsible for social protection, employment, education, health and housing will all have a role to play.
Frequently asked questions
What does the OECD recommend?
It recommends a combined approach involving employment support for parents, adequate income assistance and accessible, high-quality public services.
How many children in Ireland were below the poverty line?
ESRI research cited in the report found that approximately 200,000 children, or 17.4 per cent, lived in households below the poverty line in 2024.
Which employment policies are highlighted?
The report points to paid parental leave, flexible working, affordable early childhood education and care, training and job-search assistance.
Why does child poverty matter to the economy?
Child poverty can affect health, development, employment and earnings over time, increasing public costs while reducing future productivity and tax revenues.
The wider takeaway
The OECD report makes clear that child poverty cannot be solved through one payment or one budget announcement. A durable response must help parents work where possible, protect families when income is insufficient and ensure children can access essential services. For Ireland, the focus now turns to whether Budget 2027 delivers that joined-up approach in practice.
