Report on the state and development of poverty in the Czech Republic

In the Czech Republic, some 660,000 people are in execution, while some 400,000 people are subject to multiple executions. Some 13 percent of households are in income poverty, most often households with children or people with low education. Over 1.2 million people are at risk of losing their homes. This is clear from the Report on the State and Development of Poverty in the Czech Republic, published by the European Network against Poverty and Social Exclusion (EAPN CR).

The report on the state and development of poverty in the Czech Republic will become part of the Pan-European Poverty Watch report, which will be published by the European office of EAPN by the end of this year.
The Poverty Watch report charted the situation in the Czech Republic from autumn 2022 to this autumn. “Poverty Watch’s ambition is not to present a comprehensive academic study on poverty, rather it is based on the reality of individuals with experience of poverty and the perspective of non-profit organizations working with them,” said Charity CR analyst Jiří Vraspír.
According to PAQ Research data from September 2023, 13 percent of households are in income poverty. Among people with low education and households with children, around 20 per cent of families find themselves in such a situation.
Meanwhile, between January 2020 and March 2023, prices rose by an average of 33 percent, while energy or fuel prices rose by as much as 40 percent. The average household currently saves only 5300 kronor, up from 8000 kronor in 2021. Households spend an average of around 11,000 kroner on food, an increase of 3,600 kroner compared to 2021.
“According to IPSOS measurements, 67 percent of people cite the latest crises as causes of deterioration in their mental health, with 48 percent of people struggling with emotional and psychosocial problems,” Vraspír added, noting that more than 50 percent of such people did not receive any psychological help. Meanwhile, female households are more likely to be affected than male households, according to the analysis.
Four million execution proceedings are currently underway in the Czech Republic, EAPN reported. “The system of execution and insolvency is still set up very strictly and prevents individuals from returning to debt relief and returning to the labour market,” said charity CR’s social activities coordinator Iva Kuchyňková. As a result, billions in levies are being leaked to the state and people are being placed under a secondary burden in shortening their future pensions.
The dose system is also hard to come by for many people, according to EAPN. For example, complex application procedures, delays in payouts or overloading of labour offices are common problems. In addition, only a quarter of eligible parents benefit from child benefit. “Similarly low is the take-up of housing benefit, which only a fifth of those entitled to it receive,” the EAPN said in a report.
The average household gave 31 percent of its income to housing in September. This is 8 percentage points higher than in autumn 2021. Pooled spending on housing and food accounted for 48 percent of income, according to the analysis. According to the Housing Exclusion Report, up to one million Czechs face housing problems. The most vulnerable groups are single mothers, the elderly and the poor working.
There are currently 154,000 people in housing need, of which 40 percent are children. Another 20 percent are adults in families, 9.7 percent are single parents and 5.8 percent are seniors. According to Kitchen Kitchen, 1.27 million people are at risk of losing their homes, of which 26.8 percent are elderly, and children represent 20.5 percent of those at risk.
The state paid contributions to more than 265,000 people, spending more than 114 billion crowns on benefits.
The MPSV is making a change in the batch area. The amendment, which the department will introduce in the autumn, should improve the availability of information and counselling and social services. At the same time, there should be a review of benefits, which will bring part of benefits into one.
The European Network Against Poverty and Social Exclusion is an independent network of organisations and groups
involved in the struggle with poverty and social exclusion in Europe. In the Czech Republic, the
the rights of people dependent on social services is advocated by the national network EAPN ČR, z.s. – Member of the European networks against poverty and social exclusion. The aim of organizations affiliated with EAPN CR is
achieve acceptance of the issue of social exclusion by companies and the public administration in the Czech Republic; and remove social and political barriers to those at risk of social exclusion.
JK

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