According to Statistics Estonia, 20.2% of Estonia’s population lived at risk of poverty and 2.7% in absolute poverty in 2023; compared to 2022, the share of people living at risk of poverty decreased by 2.3 percentage points, and the share of those living in absolute poverty by 0.8 percentage points.

The share of people living in self-perceived deprivation increased by 1.5 percentage points in 2024.

Epp Remmelg, a top analyst at Statistics Estonia, the country’s official statistics agency, said the at-risk-of-poverty rate reflects income inequality in a country.

“In 2023, almost 274,800 people were living at risk of poverty – almost 29,000 fewer than in 2022. Their net monthly income, taking into account the composition of the household, i.e. the equivalent disposable income, was less than 807 euros,” said Remmelg.

Incomes rose mainly due to increases in child benefits and pensions

The analyst noted that over the years, the at-risk-of-poverty rate has been highest among seniors living alone and single-parent households.

“However, we see that in 2023, the at-risk-of-poverty rate has fallen the most among these households, as well as among households with three or more children,” she added.

Among people aged 65 and over who live alone, 71% were at risk of poverty, down eight percentage points from the previous year.

“30.5 percent of single-parent households were living at risk of poverty, which is 4.3 percentage points lower than a year earlier,” the analyst said.

She noted that among working-age households without children and two-parent households, the at-risk-of-poverty rate remained the same or increased by a few percentage points.

“This can be explained by the fact that in 2023 equivalent disposable income increased by 8%, but with overall income growth, child benefits and pensions increased more in percentage terms than earned income,” she said .

The share of people living at risk of poverty varies by region

“The at-risk-of-poverty rate in Ida-Viru (35%) and Lääne-Viru (29.2%) counties is more than twice as high as in Harju (15.5%) and Rapla (14.1 %)”, Remmelg stated, adding that the rate increased only in the regions furthest from the capital: by 3.5 percentage points in Ida-Viru County, 3.4 percentage points in Võru County and 0.4 percentage points in Salt.

In 2023, almost 36,400 people lived in absolute poverty – 11,300 fewer than a year ago. “However, it is worth noting that this number is still higher than three, four or five years ago,” Remmelg pointed out.

The analyst explained that absolute poverty indicates the share of the population that is unable to meet its basic needs.

“Their net monthly income, taking into account the composition of the household, was less than 338 euros, that is, below the estimated subsistence minimum,” said Remmelg.

The absolute poverty rate fell among people over 65. It also fell among children and young people (0-24), with 9,500 fewer of them living in absolute poverty in 2023 than a year earlier. The absolute poverty rate rose slightly among 25- to 49-year-olds, with 1,600 more of them experiencing absolute poverty than the previous year.

One in four single-parent households face deprivation

The share of people living in deprivation, i.e. people who cannot afford various items commonly available in society, increased by 1.5% this year. 7.7% of the population, or almost 104,700 people, felt disadvantaged in 2024.

One in four (25.3%) lone parent households and around one in eight (12.8%) people aged 65 or over living alone experienced deprivation in 2024. Deprivation increased by a third (34%) in 2024 among single-parent households and increased significantly among households with three or more children and elderly couples.

According to the social ministry, it is important to first direct the planned measures where there is the greatest need.

“People living alone or single-income households are still most at risk of poverty. The absolute poverty rate is also higher among the unemployed. Our aim is to help the most vulnerable target groups – the elderly and single parents – to get back on a better economic footing, both through various allowances and services,” said Kati Nõlvak, Head of Economic Subsistence at the Ministry of Social Affairs.

Allowances have increased

She noted that a number of measures had been taken in recent years to alleviate poverty and improve the livelihoods of the most needy. Last year was the biggest increase in the pension in 15 years, and pensioners were guaranteed a tax-free income equal to the amount of the average age pension. Health care reform, which went into effect last July, has made nursing homes more affordable and reduced both the payment burden and the burden of care for loved ones.

Sickness and care benefits for parents returning from parental leave have also become fairer this year. Child and family allowances have increased, single parent child allowance and maintenance allowance have doubled.

“Our goal is to reduce the share of the population exposed to the risk of poverty and social exclusion to 21% by 2030, and we have set a specific goal to reduce the rate of the risk of poverty and social exclusion of children under 15 years old. %”, Nõlvak added.

The estimates are based on data from the Estonian Social Survey of 2024. In total, 5,515 households participated in the survey. The survey collects data on annual income, which is why the 2024 survey asked respondents about 2023 income.