Over one in five people in the EU are at risk of poverty or social exclusion, with children being especially affected. Nearly one in four children faces poverty or social exclusion.
The EU works with EU countries and all relevant stakeholders to break this cycle through rights-based policies, targeted funding and coordinated reforms.
Why this matters
Living in dignity is a fundamental right enshrined in the Charter of Fundamental Rights of the European Union, which the EU has committed to respect and protect.
Poverty undermines social cohesion, weakens democracy and holds back Europe’s economic potential.
It is multidimensional and means not being able to meet basic needs and participate fully in society. This includes lack of access to quality jobs, lack of income and lack of access to key services as well as often suffering from stigma and discrimination.
The risk of poverty or social exclusion remains highly concentrated among specific groups such as children, youth, women and single parents, the unemployed, inactive, persons with disabilities, persons experiencing homelessness, persons with a migrant background, persons with a minority racial or ethnic background and LGBTIQ+ people.
Understanding poverty and social exclusion in the EU
Poverty and social exclusion are measured using the at risk of poverty or social exclusion (AROPE) indicator, covering
- Monetary poverty: having an equivalised disposable income that is less than 60% of the national median equivalised disposable income
- Severe material and social deprivation: inability to afford essential goods, services, or social activities
- Labour market exclusion: people living in very low work intensity households
These three dimensions are connected but different, and some people may experience two or all at the same time. In the context of the EU Anti-Poverty Strategy, work will be undertaken to complement these with additional indicators.
EU action at a glance
- Policy frameworks
EU Anti-Poverty Strategy and the European Pillar of Social Rights
- EU objectives
2030 target to reduce poverty by at least 15 million people, including at least 5 million children (compared to 2019) and 2050 ambition to help end poverty
- Coordination
With Member States, other EU institutions and organisations, social partners, civil society, the private sector and philanthropy and listening to persons experiencing poverty
- Funding
EU funds support social inclusion and vulnerable groups including disadvantaged children
Key principles for action
Poverty is multidimensional and tackling it requires addressing its root causes. The first-ever EU Anti-Poverty Strategy sets out a comprehensive approach to prevent and protect against poverty over the life cycle.
The European Pillar of Social Rights provides a shared commitment between governments, EU institutions and other partners to reduce poverty and social exclusion. Its 2021 Action Plan aims to lower the number of people at risk by at least 15 million by 2030, including at least 5 million children. The target was endorsed at the 2021 Porto Social Summit and welcomed by the European Council.
What the EU is doing
On 6 May 2026 the European Commission adopted the first ever EU Anti-Poverty Strategy, a Communication on strengthening the European Child Guarantee and a proposal for a Council recommendation on fighting housing exclusion.
Learn more
The anti-poverty package also builds on existing actions, which include in particular
- Council Recommendation establishing a European Child Guarantee
- Directive on adequate minimum wages in the EU
- Council Recommendation on adequate minimum income ensuring active inclusion
- Council Recommendation on access to social protection for workers and the self employed
- European Platform to combat homelessness
- EU report on access to essential services
- Guidance on assessing how policies affect different groups before they are introduced
The European Pillar of Social Rights and its Action Plan already built on earlier efforts, such as the active inclusion approach and the Social Investment Package.
How progress is being monitored
- European Semester coordinates and monitors EU countries' reforms to implement the Pillar, its Action plan and the 2030 targets
- Country-specific recommendations address key challenges in individual EU countries
- Cooperation between the Commission and EU countries through the Social Protection Committee using the open method of co-ordination
Funding social inclusion
- At least 25% of the European Social Fund Plus (ESF+) is dedicated to social inclusion
- Recovery and Resilience Facility supports social resilience and cohesion in EU countries
- The Social Climate Fund (SCF) is the first EU fund which is mainly targeted to supporting vulnerable households tackle energy and transport poverty
- The EU supports organisations working on social inclusion
- The Commission’s proposal for the Multiannual Financial Framework 2028-2034 earmarks at least 14% of the National and Regional Partnership Plans to social objectives
Additional indicators, such as the relative median poverty risk gap and persistent poverty rate, help show how severe poverty can be.
Relative median poverty risk gap
The relative median poverty risk gap compares the median equivalised disposable income of those at risk of poverty with the poverty threshold itself, showing the shortfall as a percentage of the poverty threshold. Across EU countries, this gap ranges from under 15% to nearly 30%.
Persistent at-risk-of-poverty rate
The persistent at-risk-of-poverty rate tracks long-term poverty, affecting around 10% of the EU population. It measures those who have an equivalised disposable income that is below the poverty threshold in the current year and who was also below it in at least two of the past three years – highlighting ongoing hardship rather than temporary struggles.
Broader measures of poverty and exclusion
Several indicators of the Social Scoreboard also relate to poverty and social exclusion. Amongst these are for instance
- at-risk-of-poverty or social exclusion rate (for both the total population and children)
- impact of social transfers (excluding pensions) on poverty reduction
- housing cost overburden rate
- other indicators related to social protection and inclusion