At risk of growing up in poverty

Poverty is usually confined to financial poverty and defined as having not enough money to sustain a particular consumption level. If households are below a particular income limit, it does not necessarily imply that they live in poverty, because they may have savings.

In this article, the poverty line is based on the social minimum, i.e. the minimum level of income as defined by the government. The standard for a couple with only underage children, for example, is equal to the social security benefit for couples plus child allowance and child-related budget. The income threshold is usually higher than the legal amounts. Municipal authorities often define the poverty line as equalling 110 or 120 percent of the social minimum, but other percentages also occur. In this article, the 120 percent limit defines the poverty line. The poverty line for a couple with one child was a net annual income (including child allowance and child-related budget) of 19,780 euro in 2008 and 18,390 euro for single parents with one child.

The results are based upon the Income Panel Survey conducted by Statistics Netherlands. Child maintenance is not included. The disposable incomes of single-parent families may in fact be higher.