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Poverty in Germany

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Poverty in Germany

In recent decades, poverty in Germany has been increasing. Children are more likely to be poor than adults. There has been a strong increase in the number of poor children. In 1965, only one in 75 children lived on welfare, in 2007 one in 6 did.

Poverty rates differ by states. In 2005, only 6.6% of children and 3.9% of all citizens in states like Bavaria were impoverished. In Berlin, 15.2% of the inhabitants and 30.7% of the children received welfare payments.

The German Kinderhilfswerk, an organization caring for children in need has demanded the government to do something about the poverty problem.

As of 2015, poverty in Germany was at its highest since the German reunification (1990). Some 12.5 million Germans are now classified as poor.

According to Eurostat, between 2015 and 2024, the proportion of persons at risk of poverty or social exclusion in the European Union (as illustrated in the graph "Persons at Risk of Poverty or Social Exclusion in European Union") has improved by three percentage points. However, Germany is one of the few countries that have recorded a slight increase over the years.

The proportion of persons at risk of poverty or social exclusion visibly varies by gender, according to the data. In the last decade, the discrepancy between the genders lies on average at two percentage points both in Germany and in the European Union.  In 2020, a year marked by the beginning of COVID-19 pandemic, there was an increase of approximately three percentage points for both genders (as illustrated in the graph "Persons at Risk of Poverty or Social Exclusion by Gender in European Union and Germany").

Considering both risk of poverty and severe material deprivation (e.g. food, heating, rent, etc.), combined as a poverty indicator; Germany’s position has been below the European Union with the gap visibly closing (as illustrated in the graph "Persons at Risk of Poverty and Severe Material Deprivation with Work Intensity of the Household in Germany and the European Union"). In 2024, Germany lies around a half percentage point below. The gender gap of the indicator, percentage of persons at risk of poverty and severe material deprivation, has decreased between 2015 to 2024 for both Germany and the European Union.

During the postwar period, a number of researchers found that (despite years of rising affluence) many West Germans continued to live in poverty. In 1972, a study by the Sozialpolitisches Entscheidungs- und Indikatorensystem (Social Policy Decision-making and Indicator System, or SPES) estimated that poverty effected over a million. In 1975, a report on poverty published by a CDU politician called Heiner Geissler estimated that poverty was at 5.8 million. The report also showed low pay to be a major cause of poverty.

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