One in three people living in poverty in the Netherlands struggles with significant debt. This concerns 163,000 people who, for example, cannot pay their taxes or health insurance premiums. Those just above the poverty line also often have considerable debts.
This is reported by Statistics Netherlands (CBS) based on the most recent figures for the year 2023. These figures show that 31 percent of the 540,000 people in poverty are unable to pay off their debts. Unsurprisingly, this is well above the national average of 10 percent.
Statistics Netherlands considers you to be in poverty if, after paying energy bills, health insurance premiums, and housing costs, you do not have enough money left to cover other basic needs, such as food and drink.
In addition to those in poverty, CBS also distinguishes between those at risk of poverty. These are people with an income that is a maximum of 25 percent above the poverty line and who have few assets. This involves 1.2 million people, of whom 265,000 (22 percent) are in significant debt.
The figures also show that the number of people with significant debt is higher than two years earlier. CBS does not provide an explanation, but the energy crisis may have played a role.
In the autumn of 2021, the price of natural gas, in particular, began to rise sharply, after which electricity also became more expensive. And because energy is needed to produce and transport many products, their prices also rose. For example, groceries have become considerably more expensive in recent years. With all these rising expenses, it is difficult for many to keep their heads above water financially.
Loans and tax assessments cause many problems
For people in poverty, tax assessments are the biggest cause of debt. They are also relatively often registered with a payment arrears at the Credit Registration Bureau (BKR). This may involve people who cannot repay a loan, for example. In third place is the inability to pay the health insurance premium.
Other common causes of debt are fines and student loans. There are also many people who, for example, have to repay rent or healthcare allowance, but are unable to do so.