One in five people in private households in Malta was at risk of poverty and social exclusion rate in 2019, according to an annual EU-wide survey released on Wednesday.
The European Statistics on Income and Living Conditions (EU-SILC) survey found that 20.1% of the population fell into the at-risk category last year, while 9.9% were classified as being materially or socially deprived.
Both those figures represent increases when compared to 2018, when 19% were classified as at-risk of poverty or social exclusion and 9.3% were materially or socially deprived.
At risk of poverty
The survey, published by the National Statistics Office, established the at-risk-of-poverty threshold at 60% of the national equivalised annual income, or €9,212.
That year, 17.1% of the population living in private households were estimated to be at-risk-of poverty, equivalent to around 82,758 persons. In 2018, 17% fell into that category.
The largest share was registered among elderly aged 65 and over – nearly 28% of this age cohort.
The relative median at-risk-of-poverty gap is an indicator which measures the extent to which the income of those persons who are at-risk-of-poverty falls below the at-risk-of-poverty threshold.
Deprivation indicators
In 2019, 17,506 persons, (3.6%) of people living in private households were classified as being severely materially deprived.
To qualify as severely materially deprived, a person must be unable to afford four or more of the following:
• ability to face unexpected financial expenses;
• ability to pay for one week’s annual holiday away from home;
• ability to have a meal with meat, chicken, fish or vegetarian equivalent every second day;
• ability to keep home adequately warm in winter;
• own a washing machine;
• own a colour TV;
• own a telephone (including mobile phone); and/or
• own a car.
Materially deprived persons are observed as those who cannot afford at least three deprivation items. These were estimated at 8.4% of the population.
Across the two categories, the most prevalent deprivation item was an inability to pay for a week’s annual holiday away from home, accounting for 30.8% of the population in private households.
Social deprivation
Another indicator within the EU-SILC data collection is that which attempts to gauge material and social deprivation.
Apart from items such as the ability to replace worn-out furniture and worn-out clothes, this statistic measures social pursuits, such as leisure activities undertaken regularly and meeting with family and friends.
A person is considered to be materially and socially deprived if he or she cannot afford at least five of the following:
• face unexpected expenses;
• one week annual holiday away from home;
• avoid arrears (in mortgage, rent, utility bills and/or hire purchase instalments);
• afford a meal with meat, chicken or fish or vegetarian equivalent every second day;
• keep their home adequately warm;
• a car/van for personal use;
• replace worn-out furniture;
• replace worn-out clothes with some new ones;
• have two pairs of properly fitting shoes;
• spend a small amount of money each week on him/herself (pocket money);
• have regular leisure activities;
• get together with friends/family for a drink/meal at least once a month; and/or
• have an internet connection.
In 2019, 9.9% of the private-household population were considered to be materially and socially deprived, an increase of 0.6 percentage points from 2018.
Low-work-intensity households
The third aspect of the at-risk-of-poverty or social exclusion indicator concerns very low-work-intensity households, defined as those in which the adults (aged 18 to 59) worked under one-fifth of their work potential in the year preceding the survey.
In 2019, the very low-work-intensity rate was calculated at 3.7% per cent of the private-household population.