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Poverty Rates Rise in the Netherlands

(MENAFN) Over 500,000 residents in the Netherlands were living in poverty last year, representing the first increase in poverty levels after a five-year downward trend, according to recently released data from the country's statistics agency.

Statistics Netherlands (CBS) reported that this rise comes after several years of declining poverty and is largely attributed to the discontinuation of the energy allowance, a temporary support scheme introduced during the energy crisis.

Under a newly developed poverty measurement, created jointly by CBS, the National Institute for Family Finance Information, and the Social and Cultural Planning Office, individuals are considered poor if their remaining income is insufficient to cover other essential needs after paying major fixed costs such as housing, energy, and healthcare.

The updated calculation method, launched at the end of last year, initially indicated a decrease in poverty for 2023. However, CBS noted that the withdrawal of the energy allowance triggered a renewed rise last year, with over 130,000 people experiencing poverty for at least three consecutive years.

In previous periods, poverty had fallen partly due to the energy allowance, increases in the minimum wage in 2023, and relatively affordable rents for nearly 600,000 households. Temporary relief measures during the coronavirus pandemic also contributed to the reduction in poverty levels.

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