87% of homes in Ireland are in receipt of social welfare benefits - or 'social transfers' - of some kind.

The ESRI says welfare, including child benefit and the state pension, is going a long way to reducing the poverty gap. However, the group also warns that the Department of Social Protection must avoid social welfare traps that discourage people from working.

A report from the think tank also shows that between 2004 and 2011, average social welfare received per household was €327 per month.

Dorothy Watson, Associate Research Professor with the ESRI, says Ireland's social welfare system performs well in reducing poverty, compared to other European countries: