Poverty risks in 2021
Figures revised on 19.09.2022
Due to a correction of one of our administrative databases regarding the incomes 2020, a revision of SILC 2021 is necessary.
Statbel, the Belgian statistical office, publishes today the poverty figures for 2021 from the survey on income and living conditions (EU-SILC). In Belgium, 12.7% of the population was considered at risk of monetary poverty (AROP) in 2021. These persons live in a household with a total disposable income lower than the poverty line, which is 1,293 euros per month for a single person. Furthermore, 11.9% of the population lived in a household with low work intensity (LWI). 6.3% of the Belgian population was facing severe material and social deprivation (SMSD) in 2021.
People who are confronted with at least one of the three situations above are considered at risk of poverty or social exclusion (AROPE) according to the European poverty indicator of the Europe 2030 strategy. For 2021, this was 18.8% of the population.
The poverty threshold hardly changes in 2021
‘We observe a decrease in the risk of monetary poverty’ says Annelies De Schrijver, EU-SILC expert at Statbel. ‘This is because the poverty threshold of 2021 has barely increased compared to 2020.’
‘The poverty threshold of 2021 is calculated with the income of 2020, the year where the COVID-19 pandemic broke out. In those income, we see a clear effect of the pandemic. For example, the median income of employees has remained more or less stable if we compare it with a year earlier. In pre-COVID-19 times, we generally see an increase. The median income of the self-employed, on the other hand, has dropped by about 20% compared to last year.’
‘In addition, more households received a housing allowance and we see an increase in the number of Belgians who received an unemployment benefit, a bridging right or another premium to compensate the loss of income.’
‘In general, we see that the loss of income due to COVID-19 was mainly for the working population. Employed people who were affected were able to compensate for that impact to some extent through government measures. This has an impact on the poverty threshold, which does not increase as usual, but rather remains the same. In addition, among the more vulnerable groups, such as retired people, the long-term sick and the long-term unemployed, we saw a slightly opposite effect. They are more likely to live on a allowance, which was indexed in 2020. They were therefore rather spared the monetary impact of COVID-19.’
Government measures had major impact
If we were to remove all allowances except pensions, 27.2% of the population would be at risk of poverty in 2021, compared to 25.6% in 2020. From this we learn that the financial measures introduced by the government during the pandemic have protected the population from poverty risks.
Regional differences in poverty rates
There are not only geographical differences. Population groups also differ substantially in their poverty risk. Monetary poverty is most common among people living in densely populated areas (20.4%), low-skilled people (23.8%), unemployed people (38%), tenants (26.5%) and members of one-parent families (25.5%). The least vulnerable are Belgians living in medium populated areas (8.2%), high-skilled (5.8%), working (3.8%) or owner of their dwelling (7.4%). People living in a household consisting of two adults under 65 are also at a lower risk (5.1%).
More than 2 million Belgians were at risk of poverty or social exclusion
All in all, 2,142,000 Belgians were at risk of poverty or social exclusion in 2021. More than half of them (1,329,000) had to cope with one of the three sub-risks (AROP, SMSD, LWI), while 249,000 Belgians (2.2% of the population) combined all three risks: they were severely materially and socially deprived and lived in a household with low work intensity and were at risk of monetary poverty.
In response to the new European 2030 objectives within the framework of the European Pillar of Social Rights, several poverty indicators have been modernised. They have been adapted in order to better measure deprivation and to better take into account the definitions of the active population.
In order to meet European requirements, the SILC survey was thoroughly reformed in 2019. This reform makes it possible to calculate the results more accurately. As a result of these changes, the results from 2019 onwards are not comparable with those of previous years.
Purpose and brief description
"EU-SILC" (European Union - Statistics on Income and Living Conditions) is a European survey on income and living conditions and an important tool to map poverty and social exclusion at Belgian and European level.
In Belgium, the EU-SILC survey is organised by Statbel. Every year, about 6,000 households (or 11,000 people) are surveyed and followed up for a maximum of four consecutive years. In the SILC survey, social exclusion is regarded as the result of several factors such as income, employment, health and education level.
Data collection method and sample size
CAPI (Computer Assisted Personal Interview) - Due to COVID-19 situation, temporary switch to CATI (Compter Assisted Telephone Interview).
± 60% (N= ± 7000 households).
First quarter after survey year
Calculation of the monetary poverty risk (AROP)
The poverty threshold is set at 60 % of the median disposable income at individual level. It is calculated as follows: 60 % of 22,784 euros per year equals to a threshold of 13,670 euros per year or 1,139 euros per month for a single person. For households, this threshold is not simply multiplied by the number of household members. Considering that household members share costs and expenditures, a factor of 0.5 is applied to a second adult in a household in the calculation of the poverty threshold, and a factor of only 0.3 is applied to children (<14 years). The poverty threshold for a household consisting of two adults and two children is therefore obtained by multiplying the threshold of single people by a factor of 2.1 [(€13,670 *2.1)/12 = €2,392 per month]. This factor of 2.1 is calculated by assigning a weight of 1 to the head of the household, of 0.5 to the second adult of the household and of 0.3 to each child.
Households with low work intensity (LWI)
These are the households where adults (aged 18 to 59, excluding students) have worked on average less than one fifth of the time during the reference year.
Material deprivation (SMD): details of the indicator
People considered as "severely materially deprived" are confronted with at least four of the nine following situations: they cannot afford to pay rent or utility bills, to keep their home adequately warm, to face unexpected expenses, to eat meat, fish or a protein equivalent every second day, to go on a one-week holiday away from home, to have a car, a washing machine, a colour TV or a telephone.
European poverty indicator: AROPE (At Risk of Poverty or Social Exclusion)
This indicator is derived from the three indicators mentioned above (AROP, LWI, SMD). If one or more of the conditions are met, i.e. if the household in which the person lives is characterised by low income and/or low work intensity and/or severe material deprivation, that person is considered at risk of poverty and/or social exclusion (multidimensional poverty).
Level of education
The level of education is measured using a detailed questionnaire, and the people are then divided into three groups.
Low-skilled people are people who list lower secondary education as their highest level of education. Medium-skilled people are people who obtained a diploma of higher secondary education but not of higher education. High-skilled people obtained a diploma of higher education.
- 2013: break in the series for the unemployed
- 2016 to 2018: figures revised on 12/03/2020
- 2019: time series break due to a major reform of the survey
- SILC 2020: Impact of the COVID-19 crisis on SILC 2020 results
- SILC 2021: From SILC 2021, real property withholding tax will be included in disposable income.
EU-SILC 2004 to 2020 was implemented under a framework regulation, mandatory for all EU Member States: REGULATION (EC) No 1177/2003 OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL of 16 June 2003 concerning Community statistics on income and living conditions (EU-SILC)
From SILC 2021 onwards there is the REGULATION (EU) 2019/1700 OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL. This framework regulation for integrated European Social Statistics (IESS) and the underlying implementing regulations for EU-SILC constitute the new legal framework. The development of the statistical infrastructure under IESS is supported by European grants.