Absolute poverty: even working people are in poverty in Lithuania

The risk of poverty in Lithuania is the highest in the last 7 years, writes Delfi. According to this indicator, Lithuania ranks the lowest in the entire European Union, the elderly have the hardest time. The authorities promise them to raise pensions, but the increase in pensions is such that it is not easy to get out of poverty. Another trend is the number of poor and working people.

People seem to have gotten used to the price increase, they are trying to save, the publication says.

"You can see when they take the cart in the store. Some are gaining a mountain, others are gaining cereals, bread and sunflower oil," the publication quotes the words of a resident of Vilnius.

Almost 0.5 million residents cannot afford to buy delicious food, said a representative of the Food Bank.

"In 47 municipalities, we distribute 25 tons of products every day. 300 people come here every day in Vilnius," said the director of the Food Bank, Smonas Gurevicius.

The poverty risk limit is set taking into account the incomes of residents. In Lithuania, it reaches 700 euros per month, if the income is less, people are poor. Last year there were 650,000 of them.

"Due to rising energy prices, especially for heating, poverty risk indicators may jump again," warned Zhigimantas Mauritsas, senior economist at Luminor Bank.

Every euro is counted not only by the unemployed, but also by single parents, disabled people and pensioners.

"Poverty among pensioners is 34%. This is a sign that incomes should grow," said Minister of Social Protection and Labor Inga Ruginene.

The authorities promise to increase pensions next year. More than 700 million euros have been allocated for this. True, pensions will grow by only 10% - by 78 euros.

"An increase in the income of pensioners does not mean an increase in purchasing power. Domestic consumption also leads to inflation spikes, we are in a vicious circle," said Ritis Krushinskas, a professor at Kaunas Technical University.

With one hand, the authorities pull residents out of poverty, and with the other they plunge them into it. Heating prices are breaking records, and preferential VAT has been abolished.

"This will raise heating prices and inevitably increase the number of people in need of help," Krushinskas said.

The publication states that absolute poverty is growing in Lithuania, people do not have enough money even for the most necessary things. Absolute poverty is 7%. A high level of poverty risk is recorded in the EU not only in Lithuania, but also in Latvia, Bulgaria, Greece and Croatia.