Rise in poverty rate after five years of decreases

People walking on the street in a residential area in Rotterdam
© Hollandse Hoogte / Hans van Rhoon
A total of 551 thousand people in the Netherlands were living in poverty in 2024. That was 3.1 percent of the population, and more than in 2023 when 2.7 percent were living in poverty. The poverty rate in the Netherlands had fallen for five successive years, but increased again last year. The proportion of children living in poverty remained unchanged from 2023, at 2.8 percent. This is one of the findings presented in the publication ‘Life in Poverty 2025’, which was produced by Statistics Netherlands (CBS) at the request of the Ministry of Social Affairs and Employment.

Poverty rose in 2024 because the energy allowancewas discontinued; however, there was an increase in child allowance for families. The energy allowance led to a reduction in the poverty rate in 2022 and 2023. In 2023 the minimum wage was also increased and rents were reduced for almost 600 thousand low-income households. The poverty rate also fell in 2019 and 2020, in part due to wage increases and temporary financial support during the pandemic.

Income shortfall has grown

In 2024, the average income of those living in poverty was 19 percent below the poverty line. This means that half of those living in poverty at that time were over 19 percent below the poverty line. In 2018, the average was 12 percent below the poverty line. The income shortfall therefore widened in 2022 and 2023. The steps taken by the government to improve people’s purchasing power mainly lifted people living on benefits out of poverty, but left more working people behind. The working poor, particularly those in self-employment, have a larger average income shortfall than people living on benefits.

1.1 million people at risk of poverty

In addition to 551 thousand people in the Netherlands who are currently living in poverty, 1.1 million were at risk of poverty: their household income was less than 25 percent above the poverty line and their savings and other assets were below the poverty line. This represents 6.4 percent of the population. In 2018, over 1.5 million people were at risk of poverty. This group got smaller every year, except in 2022. In that year, because of the energy allowance, benefit recipients who had been living in poverty in 2021 ended up just above the poverty line.

Among all children under 18, 245 thousand (7.5 percent) were living in a household that was at risk of poverty, and 93 thousand (2.8 percent) were living in a household below the poverty line. This means that in a school class of 30 children, three of them would be growing up in poverty or at risk of poverty.

A quarter of those in poverty or at risk of poverty have debt problems

A quarter of people who are in poverty or at risk of poverty live in households with debt problems. These include tax arrears, payment arrears registered by the Credit Registration Agency (BKR), health insurance arrears and unpaid traffic fines. Among those living in poverty, 30 percent have debt problems; among those at risk of poverty the share is 22 percent. In the rest of the population, the share is 9 percent.

Most of those living in poverty or at risk of poverty do not have enough money to cover an unforeseen expense of 1,500 euros or more. Most could not afford to replace worn-out furniture, go on a week's holiday once a year or buy new clothes regularly. Nearly half of these groups do not have enough money to invite family or acquaintances to visit them for a meal. Such financial constraints are much less common in the rest of the population.

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