News
Rising rents drive up poverty among those in work
In Catalunya, in-work poverty is below 8%, but housing costs push it up to 13%. Among renters, it rises from 15% to 28% after paying household expenses. Organisations warn that food is often the first thing people cut back on.
Housing costs push the rate from 15% to 28% among workers who rent
Among workers who rent, the poverty rate rises from 15% to 28% when housing-related expenses are deducted. Rent weighs so heavily on the budget that it changes the economic situation of people who are employed.
In Catalunya, the in-work poverty rate is below 8%. When housing costs are included, it reaches 13%, according to a report by Oxfam. Employment is also the focus of another labour analysis, though here the attention is on how much it costs to maintain a household.
Rent squeezes harder than wages
Raquel Checa, head of socio-economic justice at Oxfam Intermón, describes this situation as a trap for those who rent. The organisation is calling for measures from all levels of government to directly address rental prices.
In-work poverty has been rising in recent years, warn organisations working with vulnerable populations. They speak of people with jobs and seemingly normal lives who nevertheless live on the edge.
An expensive room can also lead to energy poverty
Access to housing also affects energy poverty. Desiré Garcia, head of the employment and digital programme at Càritas Diocesana de Barcelona, points to the situation of those living in sublet rooms at high prices.
Some people are living in substandard conditions and have set times to access certain areas of the house, such as the bathroom. In this context, coping with energy bills adds to the difficulties of housing.
When cuts are needed, food comes first
Carme Casacuberta, president of l’Associació Catalana dels Bancs dels Aliments, explains that the organisation tries to meet a basic need: food. Rent, mortgages and bills are usually paid first; eating well and maintaining a balanced diet are among the expenses that get cut.
The change can be as concrete as going from three meals a day to one, or eating meat once a month instead of once a week.
All three organisations warn that a possible increase in the minimum wage would not solve the problem on its own if basic needs like housing and food also become more expensive. Garcia describes precarious conditions that make poverty more systemic than before, when having a job used to support social inclusion.