the interface between research and policy in ireland: the case of poverty
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The Interface between Research and Policy in Ireland: The Case of Poverty. Dr Jonathan Healy Policy and Research Analyst Combat Poverty Agency 3/10/05. Some Definitions. - PowerPoint PPT PresentationTRANSCRIPT
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The Interface between Research and Policy in Ireland:
The Case of Poverty
Dr Jonathan HealyPolicy and Research Analyst
Combat Poverty Agency
3/10/05
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Some Definitions
Policy: a programme of actions adopted by an individual, group, or government, or the set of principles on which they are based
Research: methodical investigation into a subject in order to discover facts, to establish or revise a theory, or to develop a plan of action based on the facts discovered
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Outline
1. Link between research and policy
2. Case study 1: child poverty
3. Case study 2: fuel poverty
4. Case study 3: social expenditure
5. Effectiveness of policy on poverty reduction
6. Suggestions for policy-oriented research
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Research and Policy Interface
Research can inform policy either:- directly (policy submissions and statements,
requests by Ministers, etc.)- indirectly (evidence-based policy-oriented
research in academic, C&V and State sectors, and NGOs lobbying)
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Combat Poverty Agency
Stage Agency established in 1986 by Statute Autonomous but DSFA-funded Advise on ways to reduce poverty in Ireland Remit to foster policy-focused research on
poverty in Ireland Aim: better public understanding of poverty and
appropriate policy responses
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How Does CPA Link Research and Policy?
Funds and commissions policy-oriented research on all aspects of economic and social policy as it pertains to poverty
Undertakes in-house policy research and publishes findings as Policy Statements
Makes planned and ad hoc Policy Submissions on various poverty-related topics
Liaises with policymakers and influencers and promotes CPA research and policy messages
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Combat Poverty Policy Submissions Submission to the Pensions Board on the Pensions Review Submission to the Department of Enterprise, Trade and
Employment on Repealing the Groceries Order Submission to the Department of Finance on Tax Reliefs and
Exemptions for High Earners Submission to Department of the Environment, Heritage and
Local Government on the Government's Homeless Strategy Submission on the Health Bill 2004 Submission on Budget 2005 Submission to the Consumer Strategy Group Submission to the National Task Force on Obesity Submission to the OECD on its review of higher education in
Ireland
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Case Study 1: Child Poverty Policy Statement: Pro-active rather than reactive Child poverty: CPA key research theme Focus on child poverty because of Ireland’s poor
performance and Secondary analysis (in-house) of child support
packages in 22 OECD countries Examine current deficits and make recommendations
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Child Poverty in Ireland (1973-2003)
0
5
10
15
20
25
30
1973 1987 1994 1997 2000 2001 2003
%
Relative Poverty Consistent Poverty
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Latest 2003 Data
23.9% of households with children under 15 years have incomes below 60% of median (290,000 children ‘at risk of’ poverty)
14.7% of households with children under 15 years are both income poor and deprived (120,000 children)
32.6% of lone-parent households in consistent poverty
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International Income Poverty Rates
0
10
20
30
40
50
60
BEL DEN GER GRE SPA FRA IRL ITA LUX NL AUS POR FIN SWE UK
%
Children aged <16 Lone-parent with dependent children Couple with 3+ dependent children
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Net Child Support in OECD Countries
-200
-100
0
100
200
300
400
500A
US
LUX
FIN
FR
A
SW
E
GE
R
UK
BE
L
DE
N
NO
R
AU
ST
RA
L
IRL
ISR
CA
N
US
A
ITA
NZ
PO
R
SP
A
JAP
NL
GR
E
€PP
P p
er m
on
th
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Ranking of Child-Support Packages
Ireland comes 5th (€281 per month) out of all 22 countries when judged on tax concessions and income supports alone.
Ireland comes 11th (€173 per month) out of all 22 countries when judged on all child supports.
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Replacement Rates
0
20
40
60
80
100
120
140
160
180
AU
ST
RA
L
AU
S
BE
L
CA
N
DE
N
FIN
FR
A
GE
R
GR
E
IRL
ISR
ITA
JAP
LUX
NL
NO
R NZ
PO
R
SP
A
SW
E
UK
US
A
So
cial
Wel
fare
as
% o
f In
com
e
Lone Parent (1 child) Couple (2 children)
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Marginal Tax Rates
0
20
40
60
80
100
120
140
160
AU
ST
RA
L
AU
S
BE
L
CA
N
DE
N
FIN
FR
A
GE
R
GR
E
IRL
ISR
ITA
JAP
LUX
NL
NO
R NZ
PO
R
SP
A
SW
E
UK
US
A
% o
f E
xtra
Ear
nin
gs
Pai
d i
n T
ax
Lone Parent (1 child) Couple (2 children)
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Conclusions Ireland has ostensibly generous child income support
Ireland invests relatively little in subsidised services for families with children
Ireland has highest typical childcare costs in EU (€570 per month)
Though not in the worst category, Ireland’s comparative ranking on child support plummets after social services are factored in
Ireland exhibits high replacement rates and high marginal tax rates for lone parents => poverty trap
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Policy Recommendations
Income support: Reform 2nd Tier with employment-neutral Child Benefit Supplement
Childcare: Consider subsidisation of childcare (using tapered mechanism) targeting low-income and vulnerable groups using FIS disregard
Health: Move towards universal healthcare system Policy mix requires re-emphasis of child support
package with new focus on quality service provision – subsidised childcare and improved subvention of healthcare, education and housing
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Case Study 2: Fuel Poverty CPA/TCD-funded research under PRI
Strong policy context:- Rising and unstable energy prices - Increasing spend on fuel allowance- Ownership levels of domestic energy-efficiency measures
relatively low- Environmental context- Public health context (excess winter deaths/morbidity)
Research based on earlier empirical and methodological work undertaken for PhD
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Persistent Fuel Poverty in Europe (2001)
0
10
20
30
40
50
60
D DK NL B L F UK IRL I EL E P A FIN
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Fuel Poverty Risk Groups (2001)
05
101520253035404550
Ill/disabled
Lone parent
Income <
€12,700
Social G
roup E
Local Authority
tenant
Unem
ployed
1-personoccupancy
Separated/divorced/
widow
ed
Retired fem
ale
Prim
ary education
% o
f h
ou
seh
old
s af
fact
ed p
er g
rou
p
0
20000
40000
60000
80000
100000
120000
140000
No
. o
f h
ou
seh
old
s
% of households No. of households
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Why Are Energy-Efficiency Standards Low?
Higher priorities6%
Don't w ant to borrow
3%
Can't afford32%
Don't w ant disruption
3%
Rent - Not responsible
3%
Not aw are of existence
19%
Not aw are of benefits
34%
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Policy Recommendations
1. Implement national low-income energy-efficiency programme Prioritise double glazing, floor and cavity-wall insulation measures Target 24,000 homes p.a. for 10 years @ cost of €45m p.a. Private and social housing sectors included
2. Raise revenue through carbon/energy tax ‘Revenue recycling’ to safeguard low-income households from
inflationary price effects of carbon tax Tapered (means-tested) partial and full-cost grants to low-income
owner-occupier households (avoids ‘free-riders’)
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Policy Recommendations (cont.)
3. Regulate to improve thermal standards in private rental sector which has highest poverty risk
4. Social housing remedial works programmes to continue with additional funds as necessary
5. Minimise transactions’ costs for high-income owner-occupiers
6. Avoid tax credits: risky, inefficient, regressive
7. Strong State-led information campaign (SEI)
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Policy Recommendations (cont.)
8. Retain current fuel allowance- Reduces severity of experience- Index-link to fuel prices- Increase further to compensate poor households if carbon tax
introduced
9. ‘Action research’ to demonstrate actual (ex post) benefits of retrofit (inter-institutional)
10. Leadership of programme through ‘champion’ of energy efficiency and fuel poverty with State support (SEI)
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Case Study 3: Social Expenditure
Commissioned policy research Context of low social spending in Ireland Study questions rationale for this level, using
comparative data Examines relationship between wealth, inequality and
social spending Allocation of social spending across different policy
areas Reforming social exp to achieve better outcomes
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Findings
Irish social exp remains low relative to EU-15 Strong negative correlation between social
expenditure and income inequality Deficits most acute in public services Despite high correlation, hard to prove
causality between social exp and +ve social outcomes
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Irish Social Expenditure Relative to OECD Average
% of OECD average
0 20 40 60 80 100 120 140 160 180
Old-age cash benefits
Disability cash benefits
Services for older people and those w ith disabilities
Family cash benefits
Family services
ALMPs
Unemployment cash benefits
Healthcare
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Policy Recommendations
Review and close tax reliefs as appropriate to improve tax base
Integrate excluded groups into the labour force Improve mechanisms to increase incomes of
low-income working families and for linking welfare incomes to earned incomes
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Poverty Reduction Effect (%)
0
10
20
30
40
50
60
70
80
EU-25
EU-15
B CZ DK D EA GR ES F IE IT LV LT LU HU MT NL A PL SL SK FI SE UK
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Why is PRE effect So Low?
Social transfers are not working as effectively at reducing poverty in Ireland
Levels of social expenditure are comparatively low
Social transfers remain heavily means-tested rather than universal
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Policy Failure?
Data dearth? Lack of evidence-based policy research? Lack of exchequer funds? Political stasis? Overly centralised decision-making process? Developmental Welfare State?
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Suggestions for Policy-Oriented Research
Social science research should contain policy analysis Policy recommendations should be:- Focused- Time-specific- Costed (if possible)- Realistic• Research should be timely, contribute to debate on
topical issue