How many people live in poverty?
A total of 540 thousand people in the Netherlands were living in poverty in 2023, or 3.1 percent of the population. The share living in poverty in 2018 was more than double that figure. Around 115 thousand children were growing up in poverty in 2023, or 3.6 percent of all children (under 18 years). The definition of poverty applied looks not only at income, but also savings or other assets that could be converted into money.
In 2023, nearly 175 thousand people had been living in poverty for three consecutive years or more. That means that 1 in 3 of those living in poverty were in long-term poverty. In 2018, 7.1 percent of the population was defined as living in poverty.noot1 Poverty fell in 2019, partly due to wage increases, and it fell again in 2020 due to the package of support provided during the Covid-19 pandemic. Poverty also fell in 2022 and 2023. This was mainly due to government measures to help people cover higher energy prices and, in 2023, also due to measures to support people’s purchasing power, such as an increase in the minimum wage.
1.2 million people living just above the poverty threshold
In 2023, there were more people just above the poverty threshold than below it. Nearly 1.2 million people had an income of less than 25 percent above the poverty threshold and inadequate buffer assets or no buffer assets at all. In 2018, over 1.5 million people were in this financially vulnerable situation, but this group has got smaller because many people’s incomes have risen more quickly than the poverty threshold. In 2022 and 2023, this was mainly due to government support to help people pay their energy bills.
Amsterdam has the most poverty in the country
Amsterdam had the highest share of people living in poverty in 2023 (6.6 percent). Other municipalities in the Netherlands with a relatively high share of people living in poverty were Vaals (6.4 percent), Rotterdam (6.2 percent), The Hague (6.1 percent), and Vlieland (6.0 percent), where residents often do seasonal work. Other municipalities with relatively high levels of poverty are found particularly in the northeast and in the south of the country. The lowest poverty rates tend to be found in smaller municipalities. In 2023, Rozendaal (0.1 percent) had the least poverty, followed by Hilvarenbeek, Oost Gelre and Dinkelland (all 1.0 percent).
Noten
Poverty
Every household in the Netherlands has expenses for items such as housing, energy, insurance, clothing and day-to-day necessities. In addition, in order to participate in society, people need money for such things as telephone and internet connections and social activities (such as membership of a club, outings or vacations). The National Institute for Family Finance Information (NIBUD) calculated the minimum amounts required in order to participate fully in society for 35 different types of households in 2023. The poverty threshold for a single person was 1,510 euros per month. For a couple with two children aged under 13, the threshold was an average of 2,535 euros per month. In the case of two adolescent children, it was 2,910 euros for a two-parent family and 2,500 euros for a single-parent family.
To determine whether a person is living in poverty, it is not only the household’s income that is important but also buffer assets (savings and other assets that are easily available). A person is not poor if their buffer assets exceed the annual poverty threshold. A single person with a buffer assets of 18,145 euros or more in 2023 was not considered poor, even if their income fell below the poverty threshold. For a couple with two children under 13, buffer assets of at least 30,405 euros were enough to avoid being classed as living in poverty.
Actual expenditure also plays a role in measuring poverty. For most people, housing, energy and healthcare (basic insurance plus mandatory out-of-pocket contributions) are the largest fixed expenses. They have little or no ability to save any money on these expenses. We therefore base the calculation on households’ actual expenditure on these items wherever possible. If, after deducting fixed expenses, there is not enough money left for other basic needs, then a household (and the people living in it) is categorised as in poverty.