ESRI: Increased Working Hours Not Enough to Lift Many Families from In-Work Poverty

Research by the Economic & Social Research Institute (ESRI) found that increasing working hours alone will not lift many families from «in-work poverty». The study, presented at the Budget Perspectives 2027 conference, indicates that while more hours could help some low-income workers, a significant portion would remain below the poverty line even at full-time employment.

Approximately 5 percent of Irish workers, or 114,000 people, are at risk of poverty, with 74,000 working part-time. Increasing hours could reduce this rate for about half of part-time workers to 30 percent. However, factors like low wages, number of dependents, care responsibilities, limited full-time jobs, and health barriers prevent many from escaping poverty even at 40 hours per week. The ESRI suggests that reforming the Working Family Payment, the main welfare support for low-income working families, could achieve similar reductions. If all eligible households claimed this payment, 29,000 workers could be lifted out of poverty.

A separate ESRI report examined retirement age and income based on workplace pension scheme membership. Researchers Siddhant Seth and Dora Tuda found that while those with occupational pensions intend to retire earlier (63.5 years vs. almost 66), both groups typically retire around 61. Women without workplace pensions retire even earlier, at 58.5, despite intending to work until 66. Retirement incomes differed sharply: those with occupational pensions had a median weekly income of €460, compared to €230 for those relying solely on the State pension. This raises concerns about financial insecurity in older age, especially for women, given Ireland's historical reliance on the State pension and the fact that many older employees still lack supplementary pension provision.