Many families better off on welfare, claims ESRI report

A controversial report has highlighted the costs associated with working as a disincentive to join the labour force.

The ESRI report said the additional costs of working are highly significant at nearly €7,000 per year without children; increasing to nearly €9,000 per year with one child under the age of five.

It says work-related expenses are so high that many families would be better off on welfare, particularly those with children.

The findings show how difficult it is to tackle the jobless crisis as many people will be reluctant to take up jobs even if they become available.

Spokesperson for the Irish National Organisation for the Unemployed, Brid O'Brien, said that the research does not imply that our social welfare rates are too high.

"The report looks at the cost of going to work," she said.

"What's not clear is the income data that they use within the report, and I suppose it highlights the dangers of averaging things out."