Reference Budgets help to show what life is like for people on the poverty line

In a new paper, our EMIN partners from the Antwerp University, together with their colleagues from the European Reference Budgets Network, demonstrate how reference budgets can be used to show what it means to live on benefits at the level of the poverty threshold (60% of the equivalised median income in a country). Using cross-country comparable reference budgets, they show that a decent standard of living is more in reach for people living on 60% of median income in richer member states, but that even adequate food and housing are barely affordable for people in the poorest countries, living on an income at the level of the threshold. The reference budgets also show that the poverty risk of certain groups such as children is underestimated, compared to other age groups. They also indicate that the poverty risk of homeowners is probably overestimated.

The research shows that reference budgets provide policy makers and NGOs with a strong foothold for assessing the adequacy of minimum income support and are useful compliments for the existing indicators of poverty and social exclusion.

Access the paper Ref-budgets-to-contextualise-the-at-risk-of-poverty-indicator-April-2017