Caritas says gap between rich and poor continues to widen

Caritas yesterday highlighted how statistics published by the National Statistics Office show the gap between people with a high income and those with lower wages has continued to grow.

The latest figures show that in 2018, 78,685 people (16.8%) were living on a wage of €8,868 a year compared to 16.7 per cent the previous year. There were 16,241 (3.5%) people living on just €5,912 a year, up from 12,800 in 2017. Women, especially single parents, and the elderly, were the worst off.

Caritas said that free healthcare, childcare and transport were helping such individuals, but it was clear that the gap between the rich and the poor was growing wider.

In spite of the economy growing by six per cent in the past years, Malta was seeing people in the higher categories doing well while others were finding it harder to keep up.

“Everyone has a right to adequate income; to live a decent life,” Caritas said.

Other indicators released this week show some minor movement: the at-risk-of-poverty or social exclusion (AROPE) rate decreased by 0.3 per cent from 2017 to 19 per cent; the severe material deprivation rate hit a 10-year low, but more people fell below the 40 per cent of the median National Equivalised Income (NEI) threshold.

The number of people considered to be at-risk-of-poverty (ARP) is defined by whether they reach the threshold of 60 per cent of the median NEI.

The average gross household income for 2017 was estimated at €33,573, while the average disposable household income stood at €27,830. The statistics show that 76.5 per cent of the household gross income can be attributed to employment income, while the share of social benefits – which include oldage benefits – was noted to be 18.8 per cent. That is lower than the 20.9 per cent share noted in 2013, but marginally higher than the 17.2 per cent share noted in 2008.

The survey shows that the number of persons living in households on an NEI below the at-risk-of-poverty line was 78,685. This translates into an at-risk-of-poverty rate of 16.8 per cent – 0.1 per cent higher than that recorded the previous year.

This NEI is defined by the NSO as the household’s total disposable income divided by its equivalent household size to take account of the size and composition of the house.

The median NEI is considered by the NSO to be €14,781 – €259 higher than 2017. This means that the 60 per cent threshold is considered to be €8,868.

The statistics also show that in 2018 16,241 people – equivalent to 3.5 per cent of the population – were even below 40 per cent of the median NEI. Comparatively speaking, in 2017 there were 12,800 people – equivalent to 2.8 per cent – below this threshold.

The at-risk-of-poverty rate among persons below 18 years of age was calculated as 21.4 per cent, increasing by 0.2 per cent from the previous year, while the slimmest increase of 0.1 per cent was observed among those aged 18 to 64 (13.3%). The rate for those aged 65 or over went up most – by 0.5 percent – to 25.4 per cent.

Members of single-parent households were noted to be more susceptible to being at risk of poverty, with 48.6 per cent of such persons having an equivalised disposable income below the 60 per cent threshold.

Meanwhile, the material deprivation indicator for 2018 stood at 8.7 per cent – up by 0.7 per cent from 2017 and equivalent to 40,754 people. A person is described as being materially deprived when they cannot afford three out of a set list of items which include unexpected financial expenses, a one week annual holiday, and not being able to keep the home adequately warm in winter. A person is then defined as being severely materially deprived if they cannot afford four items. That rate stood at three per cent – down by 0.3 per cent from 2017 and equivalent to 14,246 people.

The more detailed statistics show that 64,926 are cannot afford unexpected financial expenses (down by 1.7% from 2017), while 142,871 cannot afford to pay for one week’s annual holiday away from home (down by 3.3% from 2017). Meanwhile, 35,592 people cannot afford to keep their home adequately warm in winter (up by 1.3% from 2017), while 26,688 cannot afford a meal with meat, chicken, fish, or vegetarian equivalents every second day (up by 0.1% from 2017).

A comparison of past rates show that the Severe Material Deprivation rate is at its lowest in 10 years, but that the Material Deprivation rate rose for the first time since 2014.

At 19 per cent, the at-risk-ofpoverty or social exclusion rate (AROPE) decreased by 0.3 percentage points compared to EU-SILC 2017. A person is considered to be at risk of poverty or social exclusion (AROPE) if they reside in a household that is either at-risk-of-poverty; severely materially deprived or has low work intensity.

The European Statistics on Income and Living Conditions (EU-SILC) survey is an annual enquiry conducted by the National Statistics Office (NSO) among people residing in private households in Malta and Gozo. Income statistics refer to calendar year 2017, while nonincome components (such as material deprivation) refer to 2018, which is the data collection year.

Also see opinion piece by Minister Michael Falzon