The number of households whose equivalised income is below the at-risk-of-poverty line in 2016 increased by 0.2% over the previous year, a National Statistics Office survey shows.
On the other hand, the rate of severe material deprivation decreased by 3.7%
Results of the 2016 European Statistics on Income and Living Conditions (EU-SILC) Survey show that the number of persons living in households with a national equivalised income below the at-risk-of-poverty line (€8,143), stood at 69,920. “This translates into an at-riskof-poverty (ARP) rate of 16.5 per cent. This rate is 0.2 percentage points higher than that recorded for the previous year.”
The equivalised disposable income is the total income of a household, after tax and other deductions, that is available for spending or saving, divided by the number of household members converted into equalised adults; household members are equalised or made equivalent by weighting each according to their age, using the so-called modified OECD equivalence scale.
The average household gross income, with 2015 as income reference year, was estimated at €31,655, while the average disposable household income stood at €26,247
The NSO also said that, in 2016, the severe material deprivation (SMD) rate among persons living in households stood at 4.4 per cent. This figure is 3.7 percentage points less than the same rate estimated from EU-SILC 2015.
“The three most influential variables that contributed towards this decrease were: ability of households to spend one week’s annual holiday away from home; ability of households to keep their home adequately warm in winter; ability of households to afford a meal with meat, chicken, fi sh or vegetarian equivalent every second day.”
The NSO said that, at 20.1 per cent, the at-risk-of poverty or social exclusion (AROPE) indicator registered a decrease of 2.3 percentage points when compared to 2015 levels. The AROPE indicator provides the share of persons who are either at-risk-of-poverty, severely materially deprived or residing in a house with low work intensity (applicable only for persons aged 0-59).
The share of persons at-risk-of-poverty or social exclusion went down for those living both in households without dependent children and with dependent children. The AROPE rate for these two household types stood at 19.6 per cent and 20.5 per cent respectively. In fact, households without dependent children registered a decrease of 1.3 percentage points and households with dependent children a decrease of 3.4 percentage points compared to the AROPE rate estimated from EU-SILC 2015.
Government response
In reaction, government said that the "median gross income (based on the fixed income in 2015) was estimated to have reached €31,655 from €31,429 the previous year, while disposable household income reached €26,247 per year, higher than €25,960 in 2015."
In 2016, government said," those considered to live in households with severe material depravation was only 1.4%, which is 3.7 percentage points lower than in 2015, when it stood at 8.1%."
"The results show that people living with a lower wage than is established in the at risk of poverty bracket rose by 0.2% over the previous year. This factor is described as normal, as the total disposable income is increasing each year, and thus the benchmark of 60% rises each year. So much so that the primary indicator regarding those hwo are at risk of poverty or social exclusion has now reduced to 20.1% in 2016. This was a 2.3 percentage point reduction over 2015."
"The indicator of those persons at risk of poverty and social exclusion includes persons at risk of poverty or are materially deprived, or live in a household where not everybody works (this last one applies to persons under 60 years old.)"
"When compared to 2015, figures show that there was a 1.3 percentage point decrease for families without children in poverty, while there was a 3.4 percentage point decrease for families with children."
"Indicators also show that the percentage of youths aged below 18 being at risk of poverty and social exclusion dropped by 4.2% in 2016 over 2015. Between persons aged 18 to 64 it dropped by 3.2%"
"There was, however, a 2.4% increase for persons aged 65 and over, but one notes that these indicators are based on 2015 income, and thus the numerous measures for pensioners which came into force over the past two budgets still need to show their results."
"The Labour government reduced poverty by 14,000 in three years, while the PN government had increased it by 18,000 in five years."
PN statement
The PN, in a statement, said that financial poverty over the past year increased by 1,300, and increased by a total of 8,200 over the past four years.
This resulted in inequality, the PN said, “according to the international criteria of the Gini coefficient. “Inequality with this scale increased from 28.1% to 28.5% over the past year. Inequality increased from 27% to nearly 29% over the past four years.
Financial poverty is an objective scale of how many people have less income than the minimum acceptable (60% of the median income).
The PN said that the elderly are the ones feeling the problem most.
“The fact that the increase occurred, even this year, shows government’s lies on the economy, and confirms what the PN is saying, that benefits are not reaching everyone.”