People at risk of poverty or social exclusion dropped to 19.99% in 2020 from 20.8%a year earlier, according to a recent survey.
There was, however, an increase of 0.3% of people aged 18-64 who were at risk of poverty.
The European Statistics on Income and Living Conditions (EU-SILC) survey, published by the National Statistics Office, found that the rate of those with material and social deprivation also fell from 9.9% in 2019 to 9.4% in 2020.
The figures are based on incomes registered in 2019. Non-income components such as material deprevation, refer to 2020.
The survey shows how, in 2020, two out of three people are no longer in severe material deprivation of essentials, while three out of five people are no longer materially deprived.
Based on the income year 2019, the number of people at risk of poverty (ARP) living in Malta was established at 85,369. These live with an income below €9,744.
The rate for people aged 65+ went down to 26.3%, a decrease of 1.4% when compared to 2019.
The report noted an increase of 0.3% of persons aged 18-64 who were at risk of poverty.
It also shows a significant reduction in the risk of poverty or exclusion among children, with a decrease of 1.3%.
The southern harbour district is reported to have the largest share of ARP persons, 22.5%, followed by the northern harbour district, with 18.4%.
The report shows that the average disposable household income has increased from €28,505 to €31,266 - representing an increase of 10% over previous years.
Poverty decreased because of government’s continuous support
Referring to the report in the evening while speaking at a pre-budget consultation meeting X’Pajjiż Tixtieq Thalli lil Uliedek? Prime Minister Robert Abela said that the rate of poverty has decreased in spite of the pandemic because the government intervened and provided support to families.
“In the year of a pandemic, the rate of poverty did not stay the same, or increase, but decreased. Due to the government's interventions, we reversed the trend,” Abela told party supporters.
“We spent billions of euros to support our families during the pandemic. We provided wage supplements, vouchers, postponed payment of taxation - over and above our excellent performance in distributing COVID-19 vaccines,” Abela said.
He also said that the forthcoming Budget will not see additional taxes.
“We could have been a government that chose the easy road, but we decided to take a completely different approach and continue to safeguard the quality of life of families,” he said.
PN: Figures confirm government failure
The Nationalist Party said the data confirmed the government's failure and a strategic plan was needed to address poverty.
The party observed that the number of people with a low income putting them at risk of poverty had increased every year - 78,000 in 2018, 83,000 in 2019 and 85,000 in 2020.
These figures were worrying as they showed an increasingly widening gap between the rich and the poor.
PL: People at risk of poverty down by a quarter since 2013
In a reaction, the Labour Party said the PN had no credibility on the matter since poverty had increased while it was in hospital.
The number of people at risk of poverty and social exclusion dropped to 19.0% in 2020 from 24.6% in 2013, the PL said.