The Times of Malta editorial ‘Why social deprivation persists’ (January 4), quite worryingly misconstrues the progress made in combating poverty and social exclusion in recent years. It is of particular concern that it also misquotes Eurostat data.
The editorial, in fact, claims that in 2013 the number of people in a vulnerable state stood at 88,000, and that nowadays it is 80,000. The official measure adopted by the European Union – the number of those at risk of poverty or social exclusion – shows very different trends.
Whereas in 2013 there were 102,000 persons, by 2018 the number was down to 89,000. This marks a reduction of 13 per cent in six years. By contrast in the six years before 2013, there had been a rise from 79,000 to 102,000, an increase of 29 per cent.
When one looks at the percentage of the population that is at risk of poverty or social exclusion, in 2018 this stood at 19 per cent, that is less than the EU average of 21.9 per cent. Back in 2013 Malta’s rate stood at 24.6 per cent, the same rate as the EU.
So, in six years, we managed to lower our rate below the EU average. In fact, the 19 per cent observed in 2018 is the lowest rate registered since data started to be compiled in 2005.
Another false claim made in the editorial was that the number of working poor has increased at a worrying rate. According to Eurostat in 2018 the proportion of employed persons in Malta who were at risk of poverty or social exclusion stood at 7.4 per cent, down from 12 per cent in 2013. In the six years before 2013, this rate had nearly doubled from 6.4 per cent to 12 per cent.
Back in 2013, the rate of working poor in Malta was just shy of the 13.2 per cent EU average. In 2018 Malta’s rate, 7.4 per cent, was considerably lower than the 11.7 per cent EU average.
In 2018, there were 4,400 single-parent households that owned their own place
The editorial also tries to give the impression that the rising cost of property has led to considerable social deprivation. Eurostat data indicate that in 2018 34 per cent of tenants renting at market rates were deemed to be at risk of poverty or social exclusion, the same rate as the EU.
However, in 2013, Malta’s rate stood at 49 per cent, well above the 36 per cent EU average. With the coming into force of rent regulation, together with investment in social housing, government will continue to address this issue. More importantly, in 2018 the home ownership rate had risen to 78.8 per cent, from 77.5 per cent six years earlier. In 2018 there were 30,000 more families who owned their home.
It is very heartening to note that in 2018 there were 4,400 single-parent households that owned their own place, as against just 2,600 in 2012. Rising employment, and assistance to lower income families, has led to substantial changes for those most at risk in our society.
Another false claim made by the editorial was that little has been done for pensioners. Eurostat data show that between 2016 (when pensions started to be increased by more than COLA) and 2018 the net median income of pensioners rose from €10,964 to €12,163. This marks an increase of 11 per cent. During the same time the net median income of employed persons rose by eight per cent.
Eurostat data show that whereas in 2013 six per cent of Maltese pensioners were in a situation of severe material deprivation, by 2018 the rate had fallen to two per cent. The rate observed in 2018 was the lowest on record since data started to be compiled. More significantly whereas in 2013 Malta’s rate was just below the EU average of seven per cent, our rate now is less than half the EU average of 4.5 per cent.
Rather than relying on the Times of Malta’s assessment that “many are better off economically, but many others have been socially marginalised and excluded from this prosperity”, readers should instead look at what the European Commission stated in its 2019 country report “Headline indicators on poverty and social exclusion show that Malta is benefiting from a flourishing economic climate”.
Similarly, IMF experts in 2019 concluded that “reducing poverty and improving social inclusion have been important goals of the government over the past five years.”
They note that “the share of people at risk of poverty or social exclusion (AROPE) in Malta had been rising following the global financial crisis, but the trend turned around in 2014. The proportion of underemployed people suffering from material deprivation (particularly related to living standards and financial arrears) has since dropped rapidly as average income surged. Poverty or social exclusion risks in Malta were below the EU average in 2017, a significant improvement from the situation in 2013.”
The conclusions made by these international experts, based on sound data and in-depth analysis, are a far more reliable testament to the social progress that has occurred in recent years.
Claudia Cuschieri is government spokeswoman, Ministry for the Family, Children’s Rights and Social Solidarity.