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Break-ups increase financial vulnerability

ESRI research has found that becoming a lone parent increases the risk of economic vulnerability.

The study draws on the Growing Up in Ireland 08 Cohort and follows the trajectories of families over nine years (2008-2017), from when the study child was aged nine months to nine.

Key findings

• 16% of families are lone parents when the child is aged 9 months and around half of these families become two-parent families over the course of the next nine years. Meanwhile, 9% of two-parent families become lone parent families during this time,
• Lone parent families faced a higher risk of economic vulnerability throughout the period. They also experienced a longer duration of economic vulnerability than two-parent families,
• Among lone parents, disability, lower education levels, larger family size and lack of employment are all associated with an increased risk of economic vulnerability,
• Lone parents who receive maintenance payments from their ex-partner and those who have access to social support face a lower risk of economic vulnerability. Around half of lone parents receive no maintenance from their former partner, 36-38% receive a regular maintenance payment and 11-17% receive a more irregular payment “when required”.

Transitions

On average, the risk of economic vulnerability is 2.6 times greater for those who become a lone parent compared to similar families that stay together.

The risk of previously married mothers being economically vulnerable is 37% compared to 15% for those who stay married, even when controlling for factors such as family size, employment status, education and previous economic vulnerability.

The ESRI states that the increased risk of poverty associated with separation is widespread even among those who are relatively advantaged before the break-up.

For example, among women with degrees, the probability of economic vulnerability is 24% for those who become lone parents compared to 10% for those who remain partnered.

For those with only lower second-level education, the respective figures are 44% and 23%. Therefore, lone parents with lower educational qualifications have the highest risk overall.

Exits from poverty

The report also investigates the factors that predict exit from economic vulnerability such as taking up employment of 16 hours or more, re-partnering, and higher educational qualifications.  

Those who do not have enough social support and have more children are less likely to exit economic vulnerability.

Policy implications

Education serves as a crucial pathway to better employment opportunities and financial independence but childcare needs and welfare complexity are also factors.

Even mothers in employment experience a substantial increase in economic vulnerability upon becoming a lone parent.

Co-author Professor Helen Russell said that separation is a period of significant economic risk for families.