19% of Luxembourg residents are at risk of poverty

Children and single-parent families were the most vulnerable category. More than 30,000 children - about one in four - are at risk of poverty, living in households with an income below 2,400 euros per month. Between 2022 and 2023, this rate increased by 1.4 points to 23.9%, a high level for Luxembourg.

STATEC also noted growing income inequality in Luxembourg. The richest 20% of the population have an average standard of living 4.8 times higher than the poorest 20%, and this inequality has increased by 0.3 percentage points. The Gini coefficient, another measure of income inequality, increased from 29.1% in 2022 to 30.6% in 2023.

The introduction of childcare vouchers (CSA) helps reduce child poverty by more than 3 percentage points, according to STATEC. The CSA scheme, which was introduced in 2009 and has been reformed several times since, allows parents to leave their children in the care of professional childcare providers.

From 2022, childcare and meals will be provided free of charge during the school year, up to a maximum of five times a week. "In-kind" social assistance, such as CSA, provides significant support to households with children. When CSA is converted into cash, the poverty rate for children under eighteen falls to 20.3%. But that still doesn't solve the problem.

All these data, together with updated indicators, will be examined in detail in the report on work and social cohesion (TCS) that STATEC will publish in September 2024.