Working people in Mayo are ‘being priced into poverty as wages fail to keep up with the cost of living’
Working families across County Mayo are being pushed into financial insecurity despite being in full-time employment, as the rising costs of childcare, housing, and inflation continue to outpace wages.
That is according to Independent councillor Harry Barrett, who says the widening gap between household income and the real cost of living has created a growing class of “working poor” in the county.
Cllr Barrett said that while people are working, paying tax and contributing to the economy, many are no longer able to afford basic necessities.
“This is not unemployment,” he explained, “These are people in jobs who simply cannot keep up with rent, childcare and everyday bills.”
The most recent Daft.ie rent report for Q3 2025, shows that the average monthly rent for a three-bedroom home in Mayo has risen to €1,450.
At the same time, full-day childcare can cost families up to €295 per week, with those on the universal subsidy still paying as much as €198.70 per week.
“For a working couple or a lone parent, these costs alone can swallow most of their income,” Cllr Barrett said.
These are people in jobs who simply cannot keep up with rent, childcare and everyday bills
He pointed to a recent analysis by economist David McWilliams, which estimated that a family with one child now needs an annual income of €52,800, the equivalent of €4,400 a month, to live with basic financial security.
“The real income needed to live with basic security in Ireland is now closer to €52,000 a year for a family with one child,” Cllr Barrett said, “That is far above the official poverty line and far above what many working families in Mayo earn,
"This explains why people who are technically above the poverty threshold still feel constantly under pressure.”
By comparison, the official poverty line based on 2024 data stands at €33,643 for a family of three, leaving a gap of nearly €20,000.
“People are getting poorer without even realising it,” Cllr Barrett said, “If your wages are lower, rents are rising, and inflation keeps increasing, then it’s obvious what happens - your disposable income disappears.”
While recent changes to social welfare supports and the Working Family Payment have benefited some households, he said that many workers are earning just above the qualifying thresholds and therefore receive no support.
“These are the people paying for everything, getting little support, and quietly slipping backwards,” he added.
Cllr Barrett has previously described this growing divide as creating “two Mayos”.
The first Mayo he described is made up of households, often based around the main towns, who are “coping”, having secured their mortgage or whose rent does not significantly eat away at their disposable income.
These areas, Cllr Barrett said, are broadly holding their own, with stable populations, access to infrastructure and incomes close to the national average.
The real income needed to live with basic security in Ireland is now closer to €52,000 a year for a family with one child
However, he warned that a second, growing Mayo is emerging – made up mainly of young people, young couples and working families who are being squeezed by rising rents, childcare costs and inflation.
“There is a huge cohort who are really struggling, even though they are working,” he explained, “It’s a perfect storm for them at the moment. I’m hearing nothing about that, no solutions as to how the load can be reduced on them.”
To address in-work poverty, Cllr Barrett outlined what he described as a three-pronged approach: affordable housing, free or heavily subsidised childcare, and wages that keep up with rising inflation.
“This is affecting younger couples with children in particular. Their disposable income is shot through because of the massive increase in rent over the last couple of years, the cost of childcare and inflation,” he said.
He called on the Government and local TDs to do more, including introducing free childcare for households earning up to €52,800, adding that the threshold could reasonably be extended to €70,000 combined household income.
“There has to be an increase in State subvention, in childcare in particular, “ he said, “This is not about targeting childcare providers in the county, they have to be paid appropriately, but the Government needs to step in and take up that shortfall in childcare.”
These are the people paying for everything, getting little support, and quietly slipping backwards
Cllr Barrett warned that working women with children are being disproportionately affected, as rising housing and childcare costs continue to chip away at their disposable income.
He also warned that the squeeze on disposable income will have knock-on effects for local businesses, as families cut back on social spending, meals out and non-essential purchases.
“People are going to forgo going to the pub for a few drinks, going out to restaurants - they’re not going to spend like they did before,” he said.
Cllr Barrett believes that this issue is not being adequately addressed at the national level, with too much emphasis placed on headline economic growth.
“Mainstream politicians don’t want to talk about this,” he said, “They’re focused on development figures, which I understand, but they’re not bringing society with them.”
He added that the West and North-West’s reclassification by the EU from a ‘developed region’ to a ‘region in transition’ in 2020 shows that Mayo is “lagging behind in EU speak”.
There is a huge cohort who are really struggling, even though they are working
When asked whether Ireland’s upcoming EU Presidency could offer Mayo an opportunity to seek additional support, Cllr Barrett said local TDs and councillors involved in regional and EU forums could use it to argue a case for increased and direct regional funding, particularly for housing, especially if it could help bring the region back to a ‘developed region’ status.
“That could mean opening up and developing new sites, allowing councils to directly build homes to allow people to have affordable accommodation,
“It boils down simply to the need for cheaper accommodation, cheaper childcare and for wages to match inflation. It’s a three-pronged approach,” he said.
The consequence of inaction, Cllr Barrett warned, is the continued growth of a group of workers who are fully employed, contribute to the economy, yet are increasingly unable to achieve basic financial security.
This article has been funded by the Local Democracy Reporting Scheme.