This means that 6.6 percent of all children live at risk of poverty, compared to 6.8 percent the year before.
In 2021, 891,000 people lived in households whose income was below the low income threshold; A quarter of these were minors (209 thousand). This means that 6.6 percent of all children live at risk of poverty, compared to 6.8 percent in the previous year (218 thousand). For the population as a whole, the risk remained unchanged in 2020 and 2021 at 5.4%. The risk of poverty decreased slightly among workers. This was reported by Statistics Netherlands (CBS) in response to the latest figures on the risk of poverty in the Netherlands.
In 2021, 370,000 people had been living in a low-income household for at least four consecutive years (2.3 percent of the population). Thus, the long-term risk of poverty was slightly lower than it was in 2020 (2.4 percent). It also decreased slightly in children: from 3.1 percent to 2.9 percent.
The lower income threshold is a fixed amount of purchasing power that is annually corrected for price developments. In 2021, the maximum per person was €1,130 per month. For a married couple without children, the price was 1,590 euros, and for two minor children, 2,170 euros. For a single-parent family with two minor children, the limit was €1,720.
The risk of poverty increases among the self-employed, less among the self-employed
In 2021, 1.8 percent (142,000 people) of the more than 7.9 million people ages 15 to 74 with basic income from paid work lived in a household with income below the low income threshold. Since a peak in 2013, when 3.5 percent of all workers were still at risk of poverty, the percentage has steadily declined.
The share of low-income employees decreased from 1.2 percent in 2020 to 1.1 percent in 2021. The decline was larger among self-employed workers with employees (ZMPs): from 3.4 percent in 2020 to 2.5 percent in 2021. It was The exception is self. – Unemployed, and the risk of poverty for him increased in 2021.
Employees are most at risk of poverty, but they make up the largest group of workers. This is why the size of the group at risk of poverty is greater among them than among the self-employed and the self-employed. In 2021, 74,000 workers were low-income workers, compared to 7,000 independent workers without employees and 60,000 self-employed workers, respectively.
The current financial situation is less rosy
People from families with incomes below the low income threshold more often reported a less favorable financial situation than people with higher incomes. They have less money left over, use savings more frequently and are more likely to go into debt than those with higher incomes. After rebounding in 2021, estimates for the low-income group deteriorated again in 2022. The percentage who say they have money left has fallen from 24 percent in 2021 to 20 percent in 2022; The percentage who said they had to use savings rose from 17 to 23 percent.
But people from households not at risk of poverty were also more gloomy about their financial situation in 2022. The percentage of households with money remaining decreased from 68 to 63 percent and the percentage who had to rely on savings increased from 8 to 12 percent . Relatively speaking, the high-income group is thus more financially dismal than the group whose income is below the low-income threshold.
Also more gloomy about future finances
When estimating the financial situation in the next 12 months, the differences between people at risk of poverty and those without it are less pronounced than when estimating the current financial situation. However, people with low incomes were more likely to believe that their financial situation would deteriorate over the next 12 months, while people with higher incomes were more likely to believe that their financial situation would not change.
Sentiment improved in both income groups in 2021, before deteriorating again in 2022. For example, among the group of low-income people, the share that expects a household’s financial situation to deteriorate increased from 31 percent in 2021 to 45 percent in 2022. Among the high-income group, this share doubled to 36 percent.
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