SVP warns of rising child poverty and calls for Budget 2027 to restore income adequacy, reduce childcare costs and tackle housing pressure

SVP launches Pre-Budget Submission 2027

(Tues 30th June at 0900 HRS) Today, SVP launched its Pre-Budget Submission 2027, calling on Government to prioritise income adequacy, address rising child poverty especially in one parent families, make early years education more affordable, and protect households from the burden of high housing costs. While overall poverty rates have shown a slight decline, SVP warns that this masks increasing hardship among specific vulnerable groups, including lone-parent families, older people living alone, and households where a person has a disability.

The Submission sets out a package of measures aimed at restoring income adequacy, reducing child poverty, improving access to affordable childcare, and addressing the impact of housing costs on household income, in line with the ambitious commitments in the cross-governmental Roadmap for Social Inclusion 2026 – 2030. Overall SVP is calling on Government to ensure Budget 2027 protects the most vulnerable households and provides income supports that reflect the real cost of living in Ireland today.

The key recommendations in SVP’s 2027 Pre-Budget Submission are as follows;

1) INCOME ADEQUACY: Welfare and low pay remain below minimum living standards
SVP is calling for a €15 per week increase in core working-age social welfare rates, which currently stand at €254 per week. The organisation says this increase is necessary to move payments closer to a minimum essential standard of living.

SVP is also calling for the National Minimum Wage to increase from €14.15 to €15.40 per hour, alongside corresponding adjustments to social welfare income thresholds and earnings disregards to ensure that work pays and does not result in sudden income loss.

SVP’s recently published 2026 MESL (Minimum Essential Standard of Living) annual report, highlighted the income inadequacy faced by one parent families reliant on social protection. The Living Alone Allowance should therefore be extended to all one adult households with children.

2) ENERGY POVERTY: Need to strengthen energy affordability and fuel supports
The recently published 2026 MESL Report also shows that while overall inflation has eased, the cost of energy for households remains much higher than it was a few years ago. Home heating oil has seen the biggest increase, rising 72.4% in the past year and 186.8% since 2020, putting significant pressure on many rural households. Natural gas prices have fallen slightly (3%) over the past year, but they are still 84% higher than in 2020. Electricity costs for everyday use, such as lighting and cooking, have increased by 25.6% over the past year and 77.7% since 2020. And by comparison, overall consumer prices increased by 3.6% in the year to March 2026 and 24.9% since 2020.

The figures highlight that, despite inflation slowing overall, many households are still paying substantially more for essential energy costs than they were just a few years ago.

In this Pre-Budget 2027 submission, SVP is calling on the Government to retain the temporary four-week extension to the Fuel Allowance and to increase the weekly payment by €4, ensuring greater support for households struggling with rising energy costs.

Speaking in advance of the launch of the SVP 2027 Pre-Budget Submission, Teresa Ryan, SVP National President, said,
“Evidence from the 2025 Survey on Income and Living Conditions (SILC) highlights growing inequality, with consistent poverty rising among one-parent households and older people living alone. Behind these figures are everyday realities. Children are starting their mornings in cold homes and going to school tired and hungry, and missing out on the social and educational experiences that help shape childhood. For older people, it can mean carefully rationing heating, staying in unheated rooms, and going without essentials to make ends meet.”

“Increasing the core social welfare rate would provide much-needed support to households on low incomes who are struggling with these basic costs, particularly those relying on €254 per week or less. At the same time, aligning the minimum wage to a higher level would help improve income adequacy for low-paid workers and reduce the need to rely on in-work supports” continued Teresa Ryan.

3) EARLY YEARS EDUCATION: childcare costs remain a barrier to employment and participation
SVP is calling for Government to progress towards a €200 per month cap on Early Childhood Education and Care (ECEC) fees, as committed to in the 2025 Programme for Government.

The Society is arguing that a more publicly funded system would reduce costs for families while improving workforce stability in the sector.

Speaking about the Government targets for poverty reduction in the recently published Roadmap for Social Inclusion, Louise Bayliss, SVP Head of Social Justice, said,
“The Government has set welcome and ambitious targets for the reduction of consistent poverty by the end of 2030 in the Roadmap for Social Inclusion. Budget 2027 is the first opportunity to match that ambition with action. Reducing consistent poverty for children from 7.8% to 3.0%, and generally from 4.7% to 2.0%, will require decisive and targeted interventions focused on those furthest behind.”

4) CHILDREN IN POVERTY: Child poverty needs to be reduced through targeted income supports
According to the Central Statistics Office Survey on Income and Living Conditions (SILC) 2025, published in March 2026, 15.5% of children in Ireland were at risk of poverty, while 7.8% were living in consistent poverty. These figures highlight that children remain among the groups most vulnerable to poverty and deprivation.

To help address child poverty and the rising cost of raising a family, SVP is calling for an increase in weekly social welfare payments of €10 for children under 12 years of age and €18 for children aged 12 years and over.

SVP is also highlighting the absence of dedicated State support to families for Transition Year costs, which can include trips, outdoor activities, workshops, and specialist materials.

The organisation is calling for a double Back to School Clothing and Footwear Allowance for students entering Transition Year, increasing support from €285 to €570 per eligible child.

SVP says these costs can prevent children from low-income households from fully participating in Transition Year or from taking part at all.

5) HOUSING AND HOMELESSNESS: After-rent poverty driving deepening hardship
SVP is calling for the Department of Social Protection to introduce an Additional Needs Payment to ensure households do not fall below a minimum income after housing costs.

The organisation warns that housing costs are a major driver of poverty;

• The at-risk-of-poverty rate rises from 12.6% before housing costs to 19.7% after housing costs.
• For households on HAP or Rent Supplement, the at-risk of poverty rate rises from 20.5% to 58% after housing costs.
• Family homelessness is now the largest and fastest-growing segment of homelessness.