Issue link: https://maltatoday.uberflip.com/i/1501361
2 NEWS maltatoday | WEDNESDAY • 14 JUNE 2023 2 MATTHEW VELLA MALTA'S at-risk-of-poverty rate has edged down just 0.2 points from last year, meaning 16.7% of people are living in households whose national equivalised in- come is €10,893. That means that 85,797 peo- ple in Malta live in a household where they earned 60% of Malta's average gross income once divid- ed by average household size – this threshold, the poverty lined, was set at €10.893, having risen 6.6% above 2021. The data stems from the Eu- ropean Statistics on Income and Living Conditions (EU-SILC) survey, an annual enquiry con- ducted by the National Statistics Office (NSO) among persons re- siding in private households in Malta and Gozo. In 2021, the average gross household income was estimat- ed at €43,186, while average dis- posable household income was estimated at €34,814. Disposable income is defined as the amount of money available to households for spending purposes, after de- ducting taxes, social contribu- tions, and alimonies. The ARP rate among persons living in households with at least one member aged 0-64 years, de- creased as the household work in- tensity increased. Indeed, 73.3% of persons living in households with very low work intensity were found to be at-risk-of-poverty. At a district level, the distribu- tion of persons under the ARP threshold was uneven across the Maltese islands, with the North- ern Harbour district having the largest share of ARP persons fol- lowed by the Northern district. On the other hand, the South- eastern district registered the lowest ARP rate. Severe material deprivation The 2022 severe material and social deprivation rate was al- so 0.5 points lower than 2021 at 4.9%: this index is made up of various variables, the main ones in this case being inability of the household to pay for one week's annual holiday away from home (33.3%), inability of the house- hold to replace worn-out furni- ture, and inability of the house- hold to face unexpected financial expenses (15.4%). When compared to 2021, the highest increases in 2022 were recorded in the respondents who said that their household was un- able to afford a meal with meat, chicken, fish or vegetarian equiv- alent every second day, respond- ents who said that they found it difficult to regularly participate in a leisure activity, and respond- ents who found it difficult to spend a small amount of money each week on themselves. Combined indicators Together, at-risk-of-poverty or social exclusion rate (AROPE) at 20.1% decreased by 0.2 points over 2021. The AROPE reveals the share of persons who are ei- ther at-risk-of-poverty, severe materially and socially deprived, or residing in a household with low work intensity. Persons are considered to be at-risk-of-poverty or social ex- clusion (AROPE) if residing in a household that falls under one of the following three conditions: at-risk-of-poverty (ARP); Severe Materially and Socially Deprived (SMSD); or has Low Work Inten- sity (LWI). The Northern Harbour district registered the highest rate of AROPE persons, at 25.7%. The lowest AROPE rate was record- ed in the Southeastern district, at 11.5%. Household Income Employment income made up 81% of the total gross household income for 2021. The share of social benefits, including old- age benefits, for 2021 stood at 15.5%. When all social transfers, in- cluding pensions, are excluded, the at-risk-of-poverty rate for 2022 increases by 18.4 percent- age points, or 94,368 persons, showing the importance of social welfare in assisting the most vul- nerable persons in society. The ARP rate for households with and without dependent chil- dren were calculated at 15.3 and 18.1% respectively. Members of single parent households were noted to be more susceptible to being at-risk- of-poverty, with 43.3% of these having an equivalised disposable income below the ARPT. Members of one-person house- holds aged 65 or over, and mem- bers of households with two adults, and three or more de- pendent children, were also more prone to being at-risk-of-poverty. The highest increases in severely materially deprived households were recorded in the respondents who said that their household was unable to afford a meal with meat, chicken, fish or vegetarian equivalent every second day Distribution of the at-risk-of-poverty (ARP) rate by district: 2022 Over 85,000 living in households at risk of poverty in 2023