In 2016, child poverty in Poland was at a rate of 24.2%. The next year, the percentage of child poverty in Poland dropped to 17.9.
The Family 500+ Program
Although child poverty in Poland is declining, the country ranks in the middle among other E.U. countries. In large part, the country can thank the social policies that the Polish government has adopted, especially the Family 500+ program. This program benefits children where families with two or more children under the age of 18 receive PLN 500 per child monthly, regardless of income. Families with lower incomes receive the benefit for their first child as well. The program boosted additional financial support to about 12% of the average gross wage in 2016. The program shows a great increase in transfers to households living in poverty, as by design, it emerged to be supplementary to other social assistance programs and family benefits.
How the Program Helps
Although the World Bank has argued that the Family 500+ program could create undesirable outcomes, like female labor force participation, which would inhibit fertility rates within the country, the Family 500+ program is a tremendous aid to children in poverty in Poland. For instance, the Family 500+ program covers an estimated 55% of all children in Poland who fulfill the age requirement of being under the age of 18. Meanwhile, by the end of February 2017, the Family 500+ program covered more than 3.82 million children under the age of 18, totaling PLN 21 billion. This shows the Polish government’s commitment to alleviating child poverty in Poland, as the program has contributed to a dramatic increase in the government’s spending on children.
In addition to Poland’s new family benefits program that it launched in order to alleviate child poverty in Poland, the country has also increased efforts to boost birth rates through the program. According to a Eurostat report in 2015, Poland had one of the lowest fertility rates in Europe at a rate of 1.32 children per woman, placing Poland at the second-lowest, right after Portugal.
Success at Reducing Child Poverty in Poland
In a recent Oxfam report, which is an international charity based in Oxford, Poland placed 26th in the world for fighting inequality. In spite of this, Oxfam ranked Poland the best at utilizing social spending to fight poverty and alleviating child poverty in Poland. In fact, estimates have determined that Poland’s child poverty rate will reduce by 76%, because of the program’s cash transfers. Statistics Office shows a 13% to 15% increase in childbirth, as recorded in December 2016 and January 2017. Not only that, after the program’s introduction, rates of consumption and saving have increased and debt levels have decreased. This shows an increase in income which could, in effect, help to alleviate poverty in Poland as a whole.
The Family 500+ program proves to be a significant tool in eliminating child poverty in Poland.
– Danielle Lindenbaum