Poverty rises in Netherlands for first time in five years

(MENAFN) Poverty levels in the Netherlands increased last year for the first time in five years, with more than half a million residents now classified as living in poverty, as indicated by newly released national data. The reversal follows a prolonged period of improvement and is largely attributed to the end of temporary financial support introduced during the energy crisis.

According to official figures, the rise is closely linked to the discontinuation of the energy allowance, a short-term measure that had helped households cope with soaring utility costs. Its removal significantly reduced disposable income for many families, pushing a growing number below the poverty threshold.

Under an updated poverty framework introduced recently by national research and planning bodies, individuals are considered poor if, after paying unavoidable fixed expenses such as rent, energy bills, and healthcare, they are left with insufficient funds to cover other basic necessities.

This revised method initially showed an improvement in poverty levels the previous year, but the trend reversed once emergency support was withdrawn.

The data indicates that more than 130,000 people have now been living in poverty continuously for at least three years, pointing to a growing group experiencing long-term financial hardship.

Earlier reductions in poverty had been supported by temporary relief measures, including energy subsidies, increases to the minimum wage, relatively low rents for hundreds of thousands of households, and government assistance during the coronavirus pandemic.

One notable shift highlighted in the figures is that employed individuals now represent the largest share of those living in poverty. Nearly half of people classified as poor earn income through work, while a smaller portion relies primarily on social welfare support.

“There are also a great many working people,” said Peter Hein van Mulligen, chief economist at CBS.

He explained that many working poor include self-employed individuals who experienced difficult financial conditions, as well as employees with limited working hours that prevent them from earning enough to stay above the poverty line.

The data also reveals stark inequalities in health outcomes. Almost four out of ten people living in poverty describe their health as poor, and chronic illness is significantly more prevalent among low-income groups. Life expectancy is notably shorter as well, by nine years for men and seven years for women compared with the broader population.

Looking ahead, economic analysts project that poverty levels could fall again in the coming years, potentially dropping below 3% by the middle of the decade. However, experts caution that these forecasts depend heavily on labor market conditions and broader economic developments, meaning the outlook remains uncertain despite a currently tight job market.

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