The debate on poverty in the Pacific is influenced by commonly held beliefs including that Islanders enjoy ‘subsistence affluence’ and that traditional support networks prevent them from falling into extreme poverty. This research paper, produced for a DFAT study to examine the need to strengthen social protection coverage, challenges these views. The paper examines the evidence on poverty and vulnerability and its causes in the region, and seeks to understand what role social transfers such as pensions, child grants and disability grants, could play in tackling poverty.