In the last several years, Austria-Hungary has experienced fluctuations in poverty rates with slight increases in poverty from one year to the next. More recently, 17.5% of Austrians were at risk of poverty in 2022, and this rose to 17.7% in 2023. A minimal change, but alongside this, the numbers related to Austrians living in absolute poverty are more striking. The number of Austrians living in absolute poverty rose from 201,000 in 2022 to 336,000 in 2023, statistically a 50% increase from one year to the next. In the broader sense, this means that 2.3% of the Austrian population was living in absolute poverty in 2022, and this figure rose to 3.7% by 2023.

Austria’s poverty increase is due to many-layered socioeconomic conditions, but statistics show that many of Austria’s citizens suffering from or transitioning to poverty are either single parents or large families. Large families usually refer to households with three or more children; these households, along with single-parent households, are much more at risk of poverty compared to coupled households with two or fewer children. An added statistic is that single mothers are perhaps the most susceptible to increased poverty from year to year, since the mother needs to provide for both household income and the weight of raising the children of the household.

Family Allowance and Family Association for Mental Health

Currently, Austria has several avenues to help these types of households and counteract growing poverty, both in the form of reduction programs and citizen benefits. Unique to Austria is the cash transfer program Family Allowance, or “Familienbeihilfe,” which focuses on providing funds specifically used to aid children in a given household. However, although this program is largely open to any household in need, the amount of cash increases with the number of siblings residing in a household. In other words, the larger the family, the larger the cash transfer, making this program especially helpful in curbing Austria’s poverty increase.

Poverty reduction programs in Austria focus on economic and educational help. The Family Association for Mental Health (FAME) program is a very surgical and focused program. FAME primarily focuses on supporting children from ages 3-6 living in tough poverty conditions and works as a six-month education program for those children’s parents.

Additionally, the program further targets parents who have little to no access to the means of paying for parenting support. The six-month program consists of completing three separate modules with a mentor, allowing the children of the household to participate in activities, and fostering healthy family relationships while providing economic support for struggling families.

Citizen Benefits to Help Reduce Poverty

One of the best ways to stifle Austria’s poverty increase is through government-granted benefits to citizens in hard situations. Since Austria’s poverty increase mainly came from large families and single-parent households, there are several benefits available specifically for single mothers to avoid poverty.

For instance, it is illegal for pregnant women to work eight weeks before and after a delivery date, but the mother receives full net pay during this time. In some cases, maternity leave can even last up to two years after birth and parents can split it between each other. In addition, all mothers receive a monthly child-maintenance fund equivalent to $1,600, depending on the child’s age, job, and university level; this fund can increase up to $2,200. Single parents in Austria can also claim a single-parent tax allowance in addition to net pay and other programs such as the Family Allowance.

Looking Toward the Future

Austria’s increase in poverty is intricate and cautious, however, it might be possible to negate in future years with supportive policies and advocative bills passed in favor of not only providing for the citizens but encouraging a flourishing lifestyle for the entire family. No matter how big or small.

– Russell Bivins

Russell is based in Phoenix, AZ, USA and focuses on Good News for The Borgen Project.

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