Report points out a reduction in the number of people at risk of poverty

The 2024 Annual Report of the Social Protection Committee contains a focus on long-term care, taking stock of the implementation of the Council Recommendation on access to affordable high-quality long-term care, as a deliverable of the European Care Strategy.

The report indicates that despite the slowdown in economic growth, employment continued to expand in 2023 and real household income improved slightly, while inflation was generally more subdued than in 2022.

Nevertheless, the purchasing power of households has been strongly impacted by rising prices over recent years and the share of people reporting financial distress remains high, particularly for those on low incomes.

Overall, progress towards the 2030 poverty reduction target remains limited, while for children the population at risk of poverty or social exclusion has actually risen compared to 2019.

Slight reduction in poverty and social exclusion but progress towards 2030 poverty reduction target remains limited

Figures for the EU27 suggest a slight reduction (around 0.6 million) in the number of people at risk of poverty or social exclusion (AROPE) in 2023, while for children the number remained broadly stable.

Individual Member States showed mixed trends and varying progress towards fulfilling their national poverty reduction targets, with around half seeing a noticeable rise in the AROPE population in 2023 and only a third a reduction.

Progress towards the 2030 poverty reduction target remains limited, with a reduction of around 1.6 million in the EU AROPE population compared to 2019, while for children the AROPE population has actually risen by 0.6 million, moving away from the objective of a reduction by 5 million. Reaching the 2030 EU poverty reduction target will require an acceleration of progress in the second half of the decade.

Positive labour market developments, but signs of weakening in the effectiveness of social protection systems and rises in material and social deprivation in many Member States

A few positive developments could be observed in 2023, with reductions in the share of the population living in (quasi) jobless households in many Member States.

Almost all Member States also saw continued rises in the employment rate of older workers. The situation for youth, as reflected in the NEETs rate, also improved in around half of the Member States.

However, there were several areas with signs of deterioration, including a decrease in the impact of social transfers in reducing poverty in over a third of the Member States and rises in the poverty risk for persons living in (quasi) jobless households in a similar number, pointing to a weakening in the effectiveness of social protection systems.

The housing cost overburden rate also increased in a significant number of Member States, as well as the poverty and social exclusion of children, and material and social deprivation for the population in general.

Continued action to protect households’ purchasing power

Member States keep taking targeted actions to protect households’ purchasing power, especially for lower income families.

They also focus on strengthening and modernising social protection and inclusion policies,  by providing robust social safety nets through successfully integrating adequate income support, in-kind benefits, support to labour market participation and access to enabling social and essential services.

Focus on access to affordable high-quality long-term care

The report takes stock of the implementation of the Council Recommendation on access to affordable high-quality long-term care, underlining that the vast majority of Member States are undertaking reforms and investments in this area. Most gaps appear in relation to the funding of LTC, the LTC workforce, the availability of services (including territorial disparities) and their quality, and the integration and coordination of care provision.

Country profiles

Country profiles for each Member State are annexed to the report. They provide a snapshot of progress towards the national 2030 poverty and social exclusion target, trends in the main social indicators,  the key social challenges and good social outcomes identified for each country.

Background

The Social Protection Committee (SPC) is an advisory policy committee to the Ministers in the Employment and Social Affairs Council (EPSCO).

The Annual Report delivers on the Committee’s core task to monitor the social situation in the EU and the developments in social protection policies in the Member States.