The number of people at risk of poverty at Malta has always been a hotly debated topic between the political parties.
The recent European Statistics on Income and Living Conditions 2019 survey shows that 17.1% of the Maltese population, that is 82,758 persons, are living in households with a national equivalised income below the at-risk-of-poverty line. The NEI of a household is defined as the household’s total disposable income divided by its ‘equivalent size’ (also referred to as consumption units). This translates into an at-risk-of-poverty (ARP) rate of 17.1%, 0.3 percentage points higher than what was recorded the previous year. For a country that was doing so well economically at the time, this statistic does not make sense, as families should have had better income.
Perhaps what the statistic does show is that while the country did well economically, the standard of living rose and income did not rise at an equivalent rate.
If the economy does well, but the benefits are not felt by everyone, then what is the point?
The ARP rate for persons aged 65+ went up to 27.7% (an increase of 2.4% over the EU-SILC 2018.) This is a very worrying situation, as people of such an age are essentially dependant on their pension income. Now the government has been working on improving pensions, but the reality is that it just isn’t enough. It is important to note that these people had, or at least most of them had, worked their entire lives and should be entitled to a bit of rest and relaxation and the opportunity to enjoy their retirement.
Meanwhile, the at-risk-of-poverty rate among persons below 18 years of age was calculated at 20.6%, decreasing by 0.8% from the previous year. This shows that both the more vulnerable sections of society (under 18s and pensioners) have the highest percentages of people who are at risk.
A decrease of 0.1% was observed for persons aged 18-64, where one finds that the ARP rate for this age cohort was of 13.2%.
The government has said that it is working on better dividing the benefits of the economy to all people, however the Covid-19 pandemic has undoubtedly impacted the economic situation in the country, as such it might be harder to help pull people out of being at risk.
The survey found that members of single parent households were noted to be more susceptible to being at-risk-of-poverty for example. Perhaps more targeted government support in this area would be beneficial for the children concerned.
The government - once the country recovers from the economic effects of the pandemic - should raise the bar in tackling the poverty issue. Tackling unemployment is clearly not enough, and more must be done to tackle wages, pensions and children who live in families within the at-risk-of-poverty threshold.
In a reactionary statement to the news, the Social Solidarity Ministry compared the statistics to pre-2013, when the PN was in government, saying: “Tens of thousands have been removed from a situation of material deprivation, while we gave dignity and opportunity to many families, especially those who could get out of work.” The Labour Party has been in government for seven years, perhaps the time has come to stop comparing the situation to that long ago and focus on tackling today’s issues. The realities of 2013 are not the same as today.
The government has made strides in the right direction yes, but 82,758 persons, living in households with a national equivalised income below the at-risk-of-poverty line is not something one can call a success.