Tackling child poverty demands policies geared to ‘keep parents at work’

Governments intent on tackling child poverty must implement policies that support parents to work rather than simply relying on cash transfers, according to a significant international report published on Monday.The document, published by the Organisation for Economic Co-operation and Development (OECD), examined not just how much states spend on children but also how they spend it.The largest gains from any additional investment in addressing child poverty will be from spending on “policies” that deliver for children, the report said.[ The Irish Times view on child poverty: more needs to be doneOpens in new window ]Reducing child poverty is a key Government commitment. It will deliver its budget outlining spending and tax measures for next year on Tuesday.READ MOREA recent Economic and Social Research Institute report found the number of children in households below the poverty line – defined as having less than 60 per cent of median household income – rose to 200,000 (17.4 per cent) in 2024, up almost 30,000 children.No single policy tackles child poverty, the report said. “The strongest results come from a coherent mix of three things: helping parents into work; adequate income support; and accessible, high-quality services.”Poverty “affects multiple dimensions of wellbeing – health, cognitive, development, and socio-emotional – with long-lasting consequences”, it added.It described child poverty as a drain on the economy through lower productivity, reduced tax revenues, and higher public spending over the life of anyone who has grown up in poverty.“Reducing child poverty could generate sizeable economic gains through higher employment, earnings and tax revenues,” it added.The report said social spending – on areas like health and wellbeing – in OECD countries has risen substantially, increasing from about 20 per cent to 25 per cent of gross domestic product and by nearly two-thirds in per capita terms since 2006.This growth has been driven mainly by population ageing and rising healthcare costs, with expenditure on families with children remaining “comparatively modest”.It said the areas with the greatest returns in tackling child poverty include supporting parents to reconcile work and care commitments.What do we expect in Budget 2027? Cliff Taylor takes us through some options. Video: Alyson Henry. Edit: Dan Dennison These include paid parental leave, flexible working, and access to affordable early childhood education and care, as well as supporting parents to access work through training and job-search assistance.Other key areas include income stability and good working conditions.It said lower-income households need a good minimum wage and the option of income supports. It also called for quality, affordable, public services – including in health and housing – to address child poverty.