COMMUNICATION FROM THE COMMISSION TO THE EUROPEAN PARLIAMENT, THE COUNCIL, THE EUROPEAN ECONOMIC AND SOCIAL COMMITTEE AND THE COMMITTEE OF THE REGIONS on the European Union's Anti-Poverty Strategy: addressing and preventing poverty from childhood to old age
Date: 2026-05-06
Institutions: Directorate-General for Employment, Social Affairs and Inclusion, European Commission
Subjects: EU strategy, European Social Fund, European social policy, cost of living, energy poverty, integration into employment, marginalisation, poverty, social assistance, social integration

EN 

  EN 

   EUROPEAN COMMISSION  Brussels, 6.5.2026  COM(2026) 538 final  COMMUNICATION FROM THE COMMISSION TO THE EUROPEAN PARLIAMENT, THE COUNCIL, THE EUROPEAN ECONOMIC AND SOCIAL COMMITTEE AND THE COMMITTEE OF THE REGIONS   on the European Union's Anti-Poverty Strategy: addressing and preventing poverty from childhood to old age {SWD(2026) 770 final} - {SWD(2026) 771 final}  
 
 
Living in dignity is a fundamental right and the EU has committed to respect it and 
protect it (1). The cost of non-action to combat poverty is significant and multifaceted. 
Poverty  undermines  social  cohesion,  weakens  democracy  and  holds  back  Europe’s 
economic potential. A strongly competitive and innovative economy enhancing growth 
and creating quality jobs contributes to reducing poverty. Soaring inflation resulting from 
the impact of geopolitical turmoil and dependency on fossil fuels has impacted and will 
continue to impact energy bills and the price of basic goods, including food, and leads to 
increased hardship and financial insecurity across Europe. While the most vulnerable are 
hit  hardest,  middle-income  households  are  also  at  risk  of  slipping  into  precariousness, 
making both prevention and protection more urgent than ever.  

Today, around one in five Europeans is at risk of poverty or social exclusion (2). This 
means 93 million people cannot afford a decent living. It means 19 million children start 
life already at a disadvantage. Some territories are particularly at risk, with 93 out of the 
243 EU regions recording poverty and social exclusion rates higher than the EU average.  

The EU has already committed to a 2030 target of reducing the number of people at risk 
of poverty or social exclusion by at least 15 million, including at least 5 million children 
(3).  Member  States  support  this  ambition  through  national  poverty  reduction  targets. 
Progress has been made despite the series of crises the EU weathered in recent years: by 
2025, the EU had recorded a decrease of 3.5 million compared to 2019, while the figure 
for children remained broadly stable. Stronger, sustained and more coordinated efforts are 
needed to come closer to the 2030 target.  

The Commission is setting out the ambition to help eradicate poverty in the EU by 
2050. This first-ever EU Anti-Poverty Strategy sets out a comprehensive approach to 
prevent and protect against poverty, contributing to the fulfilment of the European Pillar 
of  Social  Rights.  Building  on  what  is  already  being  done  and  policies  set,  it  sets  the 
pathway for further progress in reducing poverty.  

The Strategy proposes measures taken at EU level to tackle poverty, specific to each 
age category, acknowledging the impact of poverty along the whole life cycle. Central 
to the Strategy is the active inclusion approach, emphasising the importance of the support 
to labour market activation for those who can work (including the transition to quality jobs, 
as the first and best tool to prevent poverty), access to key goods and services essential to 
people’s well-being and integration in society and adequate income support. Given the size 
of the challenge, delivering results in reducing poverty requires immediate and sustainable 
investments. 

Combating poverty is a collective responsibility and requires coordinated efforts at 
all levels. At EU level, we set the first EU Anti-Poverty Strategy with this Communication. 
Its success will depend on the active engagement of authorities at all levels of governance, 
EU, national, regional and local, social partners, civil society, the private sector as well as 
on the involvement of people experiencing poverty themselves. The Strategy also provides 

(1)  See Article 1, Charter of Fundamental Rights 2012/C 326/02 of 26 October 2012 “Human dignity is 
inviolable. It must be respected and protected”; Article 3, Treaty of the European Union “[The EU] shall 
combat social exclusion and discrimination, and shall promote social justice and protection”.  

(2) 20.9% of the EU population was AROPE (at risk of poverty or social exclusion) in 2025. 

(3)  The target was welcomed by the European Council on 25 June 2021. 

 
 
 
a  framework  for  enhanced  cooperation  with  other  EU  institutions  and  relevant 
organisations. 

The Strategy is built on extensive consultations (4) and an analytical foundation, detailed 
in the accompanying Staff Working Document (5), including an analysis of previous EU 
efforts to combat poverty (6). Chapter 1 looks into measures to tackle poverty along the 
life cycle.  Chapter 2  assesses horizontal challenges  and dimensions that can aggravate 
poverty. Chapter 3 provides opportunities to improve governance, funding and monitoring 
at all levels.  

1.  MEASURES TO TACKLE POVERTY IN EVERY AGE GROUP 

All generations require targeted attention to prevent and address poverty. While each 
generation has specific needs and requires targeted action to prevent and combat poverty, 
an  integrated  approach,  combining  adequate  resources  with  effective  access  to  quality 
services is key for all ages. Tackling child poverty addresses children’s wellbeing today 
and helps prevent poverty later in life; supporting the working-age population, including 
with targeted measures for activation, is also essential to prevent both child and old-age 
poverty; and demographic ageing intensifies the need to support older people.  

Measures to help break the cycle of disadvantage and enhance opportunities in life 

On average in the EU, families with children, in particular single-parent families, are 
especially exposed to poverty or social exclusion. Child poverty reflects the economic 
situation  of  the  household  where  the  child  lives.  Low  parental  income  is  a  primary 
determinant  of  child  poverty,  stemming  from  barriers  hindering  parents’  labour  market 
integration and in-work poverty (7), while the costs of raising children are felt more acutely 
in the context of rising housing, energy and food prices. Single parents, and in particular 
single  mothers,  are  more  than  twice  as  likely  at  risk  of  poverty  or  social  exclusion  (8). 
Consequently,  today  in  the  EU,  one  in  four  children  is  at  risk  of  poverty  or  social 
exclusion (9). 

Addressing  child  poverty  requires  improving  access  to  adequate  resources  for 
parents.  First,  it  is  essential  to  support  parents’  access  to  quality  jobs  and  to  provide 
vulnerable families with adequate income support. Second, well-designed child and family 
benefit systems play a central role in helping families meet the costs of raising children. 
However, the impact of benefits on poverty and exclusion varies widely across Member 
States. This points to the need to improve their design, coverage, adequacy and take-
up.  Coordination  among  social  protection  systems,  services  and  benefits  needs  to  be 
improved  as  well.  To  address  this,  the  Commission  will  adopt  in  2027  a  Commission 
Recommendation  on  enhancing  the  efficiency  and  integration  of  child-related  benefit 

(4)  The Strategy builds on a call for evidence and a public consultation, which ran from 25 July 2025 to 24 

October 2025 and numerous targeted consultations. 

(5) Commission Staff Working Document, Poverty in the EU – key trends and policies, SWD (2026) 770  

(6)  This  benefited  from  the  implementation  dialogue  on  “Measures  to  combat  poverty:  the  Council 
Recommendation  on  adequate  minimum  income  ensuring  active  inclusion,  and  the  Council 
Recommendation on the European Child Guarantee” held on 24 February 2026. 

(7)  European Employment and Social Outlook. Quarterly review from January 2026. 

(8)  In 2024, the AROPE rate of single mothers was 46.3% in the EU. 

(9)  One in ten children has no access to a meal with meat, chicken, fish or a vegetarian equivalent daily. 

2 

 
 
 
systems in addressing child poverty, to improve coordination and enhance their positive 
impact,  in  children’s  best  interest.  Considering  and,  where  necessary,  improving  the 
distribution of social and other public expenditure across age groups appears important to 
reducing  child  poverty  and  fostering  inter-generational  fairness,  in  a  context  of  limited 
public resources. 

Children at risk should be protected from poverty and have access to the services they 
need, as a matter of urgency. High-quality early childhood education and care, schooling, 
extracurricular activities, including sport and culture, school meals and healthy nutrition, 
healthcare and housing are among the key services that can help offset disadvantage and 
foster  equal  opportunities  for  vulnerable  children  to  support  their  exit  from  poverty. 
Building  on  the  assessment  of  the  ongoing  implementation  of  the  European  Child 
Guarantee as well as emerging challenges faced by children in need, the Communication 
on “Breaking the cycle of child poverty – Strengthening the European Child Guarantee” 
announces measures to improve comprehensive access to all the services children need to 
realise their full potential in life. 

Supporting young people to thrive  

Today, young people in the EU face a  significantly  higher  risk of poverty or social 
exclusion. In 2025, 24% of young people under 29 years old were at risk of poverty and 
social exclusion, 3 percentage points higher than the total population. This is driven largely 
by youth unemployment, early school leaving and disengagement from education or the 
labour market. 

Key  challenges  facing  vulnerable  young  people  concern  mostly  their  transition 
between  education  or  training  and  employment  and  access  to  key  services. Young 
people face increasingly complex challenges in a rapidly evolving labour market, including 
a  higher  exposure  to  short-term  contracts  and  unpaid  traineeships,  among  others.  The 
Youth Guarantee (10) aims to ensure that all young people under 29 years receive a good 
quality  offer  of  employment,  continued  education,  an  apprenticeship  or  a  traineeship 
within  four  months  of  becoming  unemployed  or  leaving  formal  education.  Since  its 
creation in 2013, it has helped more than 63 million young Europeans.  

Looking  ahead,  the  Commission  will  work  with  Member  States  to  reinforce  the 
implementation of the Youth Guarantee, particularly by intensifying outreach to young 
people  in  need,  namely  in  areas  with  high  unemployment  rates.  In  this  regard,  it  is 
important to establish and support adequate, safe and inclusive out-of-school spaces at 
the local level, which may serve as hubs providing comprehensive, coordinated advice and 
mentoring to young people, as well as ensuring an integrated approach and stronger links 
with other services.  

Moreover, to break the transmission of poverty and disadvantage, it is essential to support 
the transition of children in need to empowered young persons. The Communication 
on “Breaking the cycle of child poverty – strengthening the European Child Guarantee” is 
supporting this by proposing measures to bridge the European Child Guarantee and the 
Youth Guarantee. By 2027, the Commission will develop a toolkit to link and strengthen 
the coordination between the Child and Youth Guarantee, including an emphasis on 

(10)  Council Recommendation 2020/C 372/01 of 30 October 2020 on  A Bridge to Jobs – Reinforcing the 
Youth Guarantee and replacing the Council Recommendation of 22 April 2013 on establishing a Youth 
Guarantee. 

3 

 
 
 
 
 
 
individualised approach and ensuring stronger links with other services, in particular those 
covered in the European Child Guarantee.  

Addressing poverty affecting people of working age  

Evidence  shows  that  for  those  who  can  work  a  quality  job  is  the  best  protection 
against poverty. More than just a source of income, it provides people with a sense of 
dignity  and purpose, as  well as a social  network and the sense of belonging  to  a wider 
community. Today, many people face poverty or risk falling into poverty because of their 
exclusion from the labour market: in 2025, 66% of the unemployed and 44% of the people 
outside  of  the  labour  market  were  at  risk  of  poverty  or  social  exclusion.  Women  face 
specific barriers, and there are 6.7 million more women than men at risk of poverty in the 
EU (11). Parents with caring responsibilities often do not have access to, or cannot afford, 
quality early childhood education and care. This translates into lower employment rates 
for women, evidenced in a 10-percentage point gap on average in relation to men.  

Supporting  the  labour market  integration  of  those  who  have  the  capacity  to  work 
requires  targeted  and  effective  activation  measures,  particularly  for  the  long-term 
unemployed,  the  inactive  and  those  facing  specific  barriers.  It  is  key  that  support 
measures promote individual self-sufficiency, and put forward the right balance between 
income support, active labour market measures, work incentives and mutual obligations. 
Helping those most vulnerable to gain skills, improve their employability and therefore 
increase their chances of finding sustained, quality employment requires an individualised 
approach, including on job-search assistance, counselling and guidance, training and work 
experience (12).  At  the  same  time,  supporting  activation  is  key  to  fostering  potential 
untapped  talent  in  Europe,  and  contributes  to  economic  growth,  competitiveness  and 
community development.  

This is why, in line with Article 154 (2) TFEU, in the second half of 2026, the Commission 
will  launch  the  first-stage  consultation  of  European  social  partners  to  obtain  their 
views  on  the  possible  direction  of  EU  action  to  support  the  activation  of  persons 
excluded from the labour market and equality between women and men with regard 
to labour market opportunities. The initiative would aim at supporting the identification 
and  outreach  to  those  excluded  from  the  labour  market  and  the  establishment  of 
individualised  pathways  towards  labour  market  integration,  involving  all  relevant 
authorities and strengthening their cooperation. In doing so, it would help address barriers 
to the transition into the labour market and help improve the take-up of support services. 

The  Commission  will  continue  to  support  the  social  economy  and  micro-finance, 
which have a specific role to play in providing work and self-employment opportunities 
for persons experiencing poverty. This will include assessing the role of public financial 
support  in  enabling  the  start-up  and  development  of  social  economy  actors (13). 

(11) In 2025, there are 43 million men and almost 50 million women at risk of poverty or social exclusion in 

the EU, according to Eurostat data.  

(12)  Council  Recommendation  2016/C  67/01  of  15  February  2016  on  the  integration  of  the  long-term 

unemployed into the labour market. 

(13)  Mid-term review of the Social Economy Action Plan, Council Recommendation on developing social 
economy framework conditions. Looking forward, the Commission will revise the European Code of 
Good Conduct for Microcredit Provision so that microfinance continues to meet the needs of under-
represented entrepreneurs and people in vulnerable situations and will launch in Spring 2026 under the 
EaSI  strand  of  ESF+  a  call  for  proposals  aiming  at  supporting  under-represented  groups  in 
entrepreneurship, including the most vulnerable, to set up their business. 

4 

 
 
 
Furthermore, specific groups require dedicated efforts, as they face particular barriers to 
enter the labour market. This is for instance the case for third-country nationals (14), and 
persons with disabilities, who will be supported by a strengthened Disability Employment 
Package,  in  line  with  the  Communication  on  Enhancing  the  Strategy  for  the  rights  of 
persons with disabilities up to 2030.   

However, a job can protect from poverty only if it ensures adequate income, sufficient 
to cover living costs. Despite slight improvements over the last decade, around 8.3% of 
people  in  work  in  the  EU  are  still  at  risk  of  poverty. Those  on  part-time  or  temporary 
contracts  are  twice  as likely  to  be  at risk of poverty  (12.9%  and  13.4%  respectively)  as 
compared to those on full-time or permanent jobs (6.9% and 5.2% respectively).  

Addressing in-work poverty requires promoting quality jobs, combating involuntary 
low-work intensity including by removing barriers such as the lack of affordable care 
and ensuring access to services and income support where relevant. It also requires 
tackling undeclared work through the formalisation of incentives alongside enforcement. 
A  strongly  competitive  and  innovative  economy  with  adequate  and  transparent  wages 
supported by collective bargaining, non-precarious work contracts, training opportunities, 
adequate  social  protection (15),  as  well  as  policies  that  help  reconcile  work  and  family 
life enable  quality  jobs  (16). The  Member  States’  design  of  social  benefits  and  in-work 
benefits also has an impact on in-work poverty, in particular for those transitioning towards 
full-time and stable jobs. Adequate minimum wages should be set at a level sufficient to 
protect  full-time  working  persons  from  poverty,  in  line  with  the  Directive  on  adequate 
minimum wages.  

In 2027, the Commission will put forward a Commission Recommendation providing 
evidence-based  policy  guidance  and  best  practices  to  prevent  and  combat  in-work 
poverty. The guidance will be developed in close cooperation with the Member States and 
the social partners. It will outline the main drivers of in-work poverty and will elaborate 
best  practices  to  support  shifts  towards  higher  work  intensity  (and  therefore  higher 
incomes) and ensuring that tax-benefit systems are consistently aligned so that more hours 
worked  translate  into  higher  incomes.  It  will  be  followed  by  dedicated  structured 
discussions with all relevant actors, including social partners and national authorities. In 
parallel,  the  Commission  will  step  up  enforcement  to  ensure  full  transposition  of  the 
Directive on adequate minimum wages (17). The forthcoming 2026 report on the Directive 
will  provide  an  overview  of  the  current  state  of  play. The  Commission  will  step  up  its 
efforts through the mutual learning exchanges and pursuing close monitoring within the 
Employment Committee (EMCO) and the Social Protection Committee (SPC). 

(14)  Commission  Communication  COM(2020)  758  final  of  24  November  2020  on  the  action  plan  on 
integration  and  inclusion  2021-2027  EU  Action  Plan  on  Integration  and  Inclusion  2021-2027  and 
Commission  Communication  COM(2026)  45 final  of  29  January  2026  on  the  European  asylum  and 
migration management strategy.  

(15)  Council Recommendation 2019/C 387/01 of 8 November 2019 on access to social protection for workers 

and the self-employed.   

(16)  Commission Communication COM(2025) 944 final of 4 December 2025 on the Quality Jobs Roadmap.  

(17)  Directive  (EU)  2022/2041  of  the  European  Parliament  and  of  the  Council  of  19  October  2022  on 

adequate minimum wages in the European Union. 

5 

 
 
 
It is essential to ensure the necessary support to live in dignity to those who cannot 
work, either structurally or because they are currently facing specific barriers (18). 
While  all  Member  States  have  minimum  income  schemes  in  place,  which  also  support 
access to services and inclusion in the labour market, the adequacy and coverage of the 
support vary significantly. A prominent challenge in this regard are also the low levels of 
take-up  of  support,  which  vary  from  20%  to  50%  across  Member  States,  strongly 
undermining the effectiveness of public policy. In early 2027, the Commission will publish 
a Compendium of best practices to help address non-take-up of income support. This 
will  cover  the  different  drivers  of  non-take-up,  including  lack  of  information  and 
administrative  complexity,  and  serve  as  a  basis  for  more  structured  cooperation  on  this 
topic in the Social Protection Committee (19) and its working group on Minimum Income 
(MINET) (20). 

Combating and preventing poverty in old age 

In 2025, almost one in five people aged 65 or over was at risk of poverty or social 
exclusion in the EU (18.8%). The rate is much higher for women (21.2%), compared to 
men (15.8%). This gender gap is often linked to lower pensions for women, on average, 
resulting  from  gaps  in  employment  and  pay  as  well  as  career  gaps  for  care  reasons 
accumulated  during  working  life.  Increased  incidence  of  disability  and  long-term  care 
needs in old age also translate into additional impact on poverty at old age. Furthermore, 
old age may also bring along challenges linked to increased health care and long-term care 
needs, increased risk of social isolation and loneliness, which may be further compounded 
by digital exclusion. 

Tackling and preventing old-age poverty and social exclusion requires coordinated 
action across pension adequacy, labour market participation and social protection as 
well  as  effective  access  to  high-quality  care  services  and  targeted  social  inclusion 
interventions.  Targeted  incentives  and  enablers  to  allow  longer  working  lives  where 
suitable,  adequate  pensions,  old-age  benefits (21)  and  supplementary  pension  savings, 
which support the capacity of pension systems, prevent that persons fall into poverty in old 
age. In this sense, improving pension literacy and pension transparency also have a role to 
play  to  enhance  retirement  income (22).  The  Commission  calls  to  build  a  multi-pillar 
pension system overtime, which aims at ensuring an adequate old-age income. 

In 2027, the Commission and the Social Protection Committee will publish a Joint Report 
on Adequate Social Protection in Old Age, which identifies gaps in pension adequacy 
and long-term care coverage across Member States, and an Expert Report mapping and 
reviewing  national  mechanisms  to  protect  older  people  from  poverty.  Both  will 

(18)  Council Recommendation  2023/C 41/01 of 30 January 2023 on adequate  minimum income ensuring 

active inclusion. 

(19)  Social Protection Committee - Employment, Social Affairs and Inclusion.  

(20)   Minimum Income Network (MINET) working group - Employment, Social Affairs and Inclusion. 

(21)  Mechanisms such as minimum pensions and old-age benefits, survivors’ pensions, disability allowances, 

pension splitting schemes and pension credits for care periods. 

(22)  Commission Communication 124 final of 19 March 2025 on the savings and investments union strategy, 
Commission  Communication  839  final  of  20  November  2025  on  enhancing  the  capacity  of  the  EU 
supplementary pension  sector  to  improve  retirement  income  and  supply  long-term  capital  to  the  EU 
economy, and the Commission Recommendation 2025/2384 of 27 November 2025 on pension tracking 
systems, pension dashboards and auto-enrolment. 

6 

 
 
 
support policy makers to undertake reforms to strengthen pension systems, ensure their 
long-term adequacy and address old-age poverty. Building on these, the Commission will 
hold a High-level exchange on integrated policies for a dignified old age with Member 
States, social partners, stakeholders and experts. 

Avoiding the transmission of poverty in life across age groups 

Every year, around one third of people ‘at-risk-of-poverty’ move out of poverty and 
are  replaced  by  new  cohorts  (23). These  transitions  in  and  out  of  poverty  are  usually 
triggered by changes in employment and income (such as quitting or starting a new job, or 
increasing or reducing working hours), but also by changes in the household composition 
(such as having a child or separating) and the broader impact of crises. 

Transitions between life stages, from childhood to youth, youth to working age and 
working  age  to  retirement,  are  critical  moments  when  the  risk  of  falling  into 
precarious  situations  can  materialise.  For  instance,  young  people  leaving  the  family 
home often face important life milestones such as entering the labour market, frequently 
through precarious jobs or starting a family while struggling to access affordable housing. 
This  is  particularly  acute  for  those  leaving  alternative  (institutional  or  residential)  care, 
who  are  at  higher  risk  of  falling  into  poverty  or  even  homelessness  (24).  Similarly,  the 
transition  from  working  age  to  retirement  can  be  accompanied  by  an  increased  risk  of 
poverty, if not well prepared. Promoting longer working lives for those who can and wish 
to continue working and supporting active and healthy ageing are essential to prevent old-
age poverty. This should be accompanied by policies that promote positive incentives and 
greater flexibility in retirement pathways, also reflecting the diversity of working careers 
and stimulating early inclusion in supplementary pensions.  

More  broadly,  all  policies  need  to  be  designed  to  prevent  the  accumulation  of 
disadvantages  over  the  life  course.  This  is  the  rationale  behind  the  Intergenerational 
Fairness Strategy (25) and the upcoming Longevity Roadmap, which will map age-specific 
policy  issues  for  all  age  groups  to  identify  strategic  opportunities  for  actively  shaping 
longer and healthier lives and financial security.   

2.  MEASURES TO ADDRESS HORIZONTAL CHALLENGES THAT AGGRAVATE POVERTY 

With  a  view  to  further  prevent  and  address  poverty,  it  is  essential  to  tackle  horizontal 
challenges,  which  might  impact  all  generations  at  the  same  time.  This  includes 
discrimination and stigma, difficulties to afford basic needs, such as food, energy, a home 
and other basic goods and the lack of access to quality services.  

Combating discrimination and stigma 

Prejudice and stigma can put specific population groups at a disadvantage from the 
outset, while women and some population groups are more exposed to poverty and 
social exclusion. Women are more likely to face poverty, including due to exposure to less 

(23) Commission Staff Working Document, Poverty in the EU – key trends and policies, SWD (2026) 770.  

(24) According to UNICEF, across the EU, hundreds of thousands of children live in residential institutions, 
with an overrepresentation of children with disabilities. The impact of institutionalisation is severe and 
can last a lifetime.  

(25)  Commission  Communication  COM(2026)  110  final  of  5  March  2026  on  the  strategy  on 

intergenerational fairness.  

7 

 
 
 
 
 
job opportunities and lower employment rates, breaks during the career and unpaid care 
work (26). Prejudice and stigma also affect persons with disabilities (29% at risk of poverty 
and social exclusion), people born outside the EU (39%), persons with a minority racial or 
ethnic background, in particular Roma (70% are at risk of poverty) and LGBTIQ+ persons 
(38% make ends meet with great difficulty). 

All these factors can limit access to employment, education, housing, care-related and 
other services, while also undermining social trust, personal safety and participation 
in society. The Commission has drawn up strategies aimed at promoting gender equality 
and  combating  discrimination  of  persons  with  disabilities,  persons  affected  by  racism, 
Roma and LGBTIQ+ persons, in the context of the Union of Equality (27). The Commission 
will continue to work with Member States and other stakeholders to develop anti-poverty 
measures targeted at specific groups. In particular, the EU Roma Strategic Framework calls 
to reduce the poverty gap between Roma and the general population by at least half by 
2030.  

Besides  the  groups  listed  above,  persons  experiencing  poverty  are  also  often 
stigmatised or discriminated against due to their socio-economic background (28). To 
inform  further  work,  the  Fundamental  Rights Agency  (FRA)  will  produce  comparative 
legal analysis about the socio-economic status as a ground of discrimination in the legal 
and regulatory frameworks of the EU Member States and provide data about the significant 
impact of poverty and socio-economic disadvantage on discrimination. 

Facilitating coverage of basic needs in a context of rising cost of living 

Across the EU, the increasing cost-of-living pressures are pushing more people into 
poverty,  deepening  hardship  for  those  already  struggling  and  increasing  financial 
precariousness  for  middle-income  households.  The  cost  of  living  is  one  of  the  main 
concerns of people in the EU, with 88% worried about the daily cost of living and its impact 
for  the  future  of  their  household  (29).  This  is  a  grave  concern  for  people  already 
experiencing  poverty  today,  while  pushing  those  from  the  middle  class  to  the  risk  of 
experiencing  precariousness  and  hardship.  The  affordability  of  healthy  and  sustainable 
food is one important concern, which should be monitored and tackled (30). With rising 

(26)  The Gender Equality Strategy 2026-2030 underlines that the Commission will explore ways to address 
labour market outcomes and relevant pension system features that drive the gender pension gap, and 
map and support exchange of best practices in addressing the gap. 

(27) Commission Communication COM(2026) 113 final of 5 March 2026  on the gender equality strategy 
2026-2030, Commission Communication COM(2021) 101 final of 3 March 2021 on the strategy for the 
rights of persons with disabilities 2021-2030, and Communication on “Enhancing the Strategy for the 
Rights of Persons with Disabilities up to 2030”, EU Roma Strategic Framework for Equality, Inclusion 
and Participation 2020-2030, Commission Communication COM(2026) 12 final of 20 January 2026 on 
the anti-racism strategy 2026-2030, Commission Communication COM(2025) 725 final of 8 October 
2025 on the LGBTIQ+ equality strategy 2026-2030, Commission Communication COM(2021) 142 final 
of 24 March 2021 on the EU strategy on the rights of the child.  

(28)  An  analysis  of  the  introduction  of  socio-economic  status  as  a  discrimination  ground,  Tomas  Kadar, 

Equality and Rights Alliance. 

(29)  2025 Eurobaromater “Investing in Fairness”. 

(30)  The Commission monitors the availability and affordability of food in the EU with the Agri Food Chain 
Observatory and will promote the exchange of good practices regarding food poverty and access to a 
healthy diet in Member States. The Common Agricultural Policy plays a central role in safeguarding 
food availability in the EU, contributing to healthy and sustainable food. 

8 

 
 
 
food prices, an ever-growing group of people depends on the support from authorities or 
organisations in accessing food or relying on the support of food banks (31). 

Fighting  energy  and  transport  poverty  should  remain  a  priority  in  the  context  of 
current geopolitical turmoil, as increases in energy and transport prices impact even more 
significantly vulnerable households who spend a higher share of income  on energy. As 
announced in the AccelerateEU Communication adopted in April 2026, the Commission 
will  coordinate  efforts  to  protect  citizens,  and  especially  vulnerable  consumers,  from 
energy  prices  shocks 
through  emergency  measures,  protection  from 
disconnections, social leasing schemes and other measures to  accelerate energy savings 
and clean energy. The Commission will also step up its efforts against energy poverty by 
updating the 2023 Commission Recommendation on energy poverty later in 2026 (32). For 
lower-income households, a more circular economy can reduce cost-of-living pressures by 
extending  the  lifespan  and  repairability  of  products  and  expanding  access  to  affordable 
second-hand markets and repair services (33).  

including 

In  the  context  of  rising  cost  of  living,  it  is  key  to  accelerate  efforts  to  improve 
consumer protection, financial literacy and access to financial services. Consumers, 
and in particular vulnerable consumers, should also be protected in the digital world. The 
forthcoming Digital Fairness Act will substantially contribute to ensuring this protection. 
Financial literacy has an important role to play, already from an early age, as it can support 
people’s ability to understand basic concepts enabling them to consume, save and invest 
in  a  more  informed  manner  throughout  their  lives  (34).  Financial  literacy  can  also  help 
avoid over-indebtedness, which can deteriorate due to rising debt costs, falling incomes, 
higher cost of living and increased reliance on credit (35). It is also essential to facilitate 
access to financial services by making sure that all consumers have the right to open and 
use a payment account with basic features anywhere in the EU (36) as well as improving 
access to cash (37). 

(31)  The EU supports access to basic material assistance, and to food in particular (ESF+). 

(32)  The Commission will also continue implementing the Citizens’ Energy package adopted in March 2026, 
which includes future efforts to strengthen protection from disconnection and to manage the European 
Energy Poverty Advisory Hub. With the 2025 Commission Recommendation on Transport Poverty and 
the Transport Poverty Hub, the Commission supports Member States in addressing transport poverty. 
This is also an objective of the Social Climate Fund. 

(33)  The Circular Economy Act to be adopted by the Commission in 2026 will address bottlenecks that inhibit 

circular transition in several key value chains, such as textiles, construction and plastics. 

(34)  Commission  Communication  COM(2025)  681  final  of  30  September  2025  on  a  financial  literacy 

strategy for the EU. 

(35)  EU  Directive  2023/2225  of  18  October  2023  on  credit  agreements  for  consumers  and  repealing 
Directive 2008/48/EC  and  EU  Directive  2014/17?EU  of  4  February  2014  on  credit  agreements  for 
consumers  relating  to  residential  immovable  property  and  amending  Directives  2008/48/EC  and 
2013/36/EU and Regulation (EU) No 1093/2010. 

(36)  EU Directive 2023/2225 of 30 October 2023 on credit agreements for consumers and repealing Directive 
2008/48/EC and EU Directive 2014/92 of 23 July 2014 on the comparability of fees related to payment 
accounts, payment account switching and access to payment accounts with basic features. 

(37)  Commission proposal COM(2023) 366 final of 28 June 2023 on payment services and electronic money 
services in the internal market amending Directive 98/26/EC and repealing Directives 2015/2366/EU 
and  2009/110/EC,  Commission  proposal  COM(2023)  366  final  on  payment  services  and  electronic 
money  services  in  the  Internal  Market  amending  Directive  98/26/EC  and  repealing  Directives 

9 

 
 
 
Housing prices are a particular challenge for those experiencing or at risk of poverty. 
Access to affordable, sustainable and quality housing is a vital prerequisite for integration 
in society and into the labour market (38). While people facing housing difficulties are more 
likely to fall into poverty, 31.1% of low-income households are overburdened by housing 
costs, and approximately 5% of people aged 16 or older report having experienced housing 
difficulties at some stage in their lives (39). Around 1 million persons in the EU experience 
homelessness, the most extreme form of poverty and social exclusion (40). Together with 
this  Strategy, 
for  a  Council 
Recommendation on fighting housing exclusion, which aims to facilitate the design and 
implementation of national strategic frameworks based on person-centred, housing-led and 
integrated policies to support people in precarious housing situations and to prevent and 
address homelessness.  

the  Commission  puts 

forward  a  proposal 

Ensuring access to services for those in need  

Social services have an important role to play in providing the necessary basic welfare 
and support to those already experiencing poverty and preventing others from falling 
into poverty. Social inclusion services, such as social work, counselling, psychological 
support  and  rehabilitation,  are  particularly  important.  Social  inclusion  services  are  also 
instrumental  in  guiding  users  towards  the  services  they  need  (such  as  education  and 
training, care, health services) and facilitating their access to so-called essential services 
(energy, transport, digital communications, water and sanitation and financial services) by 
informing them of the relevant schemes in places (e.g. energy benefits). For their efforts 
to be effective, this requires strengthening cooperation between administrations, including 
in  terms  of  digital  infrastructure.  Furthermore,  a  particular  challenge  is  to  ensure  the 
availability  of  services  across  the  territory,  including  in  rural  and  outermost  regions. 
National averages hide significant territorial disparities with pockets of poverty affecting 
both urban and rural areas. One of the objectives of the upcoming Strategy on a ‘right to 
stay’,  aimed  to  support  the  attractiveness  of  territories,  will  be  to  facilitate  access  to 
services all across the EU. 

Improving  access  to  services  means  better  quality,  availability,  accessibility  and 
affordability. The Commission will work with the Social Protection Committee to update 
the 2010 Voluntary European Quality Framework for Social Services, which focuses 
on improving service delivery (providing guidelines on how to set, monitor and evaluate 

2015/2366/EU and 2009/110/EC and Commission proposal COM(2023) 364 final for a Regulation on 
the legal tender of euro banknotes and coins. 

(38)  The 2025 European Affordable Housing Plan supports Member States, regions and cities in tackling the 
housing crisis. It calls for a specific focus to support the most affected, notably young and homeless 
people.  In  this  perspective,  the  Pan-European  Investment  Platform  for  affordable  and  sustainable 
housing  and  the  European  Housing  Alliance  aim  to  provide  a  cross-sectoral  and  multigovernmental 
framework  for  developing  cooperation  and  leveraging  additional  financing  for  social  and  affordable 
housing,  including  for  the  benefit  of  the  most  vulnerable.  The  New  European  Bauhaus  supports 
affordable, sustainable and quality housing by scaling up funding and developing and replicating new 
solutions for more inclusive, fair and accessible neighbourhoods as well as community-led solutions for 
affordable housing. 

(39)  Housing difficulties are defined as situations where a person had no place of their own (either owned or 
rented) and was forced to stay with friends or family, use emergency or temporary accommodation, live 
in a place not intended as a permanent home, or sleep in a public space. 

(40)  The 2021 Lisbon Declaration on the European Platform on Combatting Homelessness sets out collective 

actions to works towards the ambitions to end homelessness by 2030.  

10 

 
 
 
quality  standards  for  social  services).  This  will  also  address  administrative  complexity, 
stigma, digital exclusion and procedural barriers. The Commission will also update the 
2023 Commission Report on Access to Essential Services.  

Barriers to accessing services can compound and entrench poverty, particularly when 
those in acute need cannot obtain quick and effective support in times of need. There 
is a need for improved coverage, better integration and cooperation among services, and 
stronger alignment between the support available and the actual needs of those they are 
intended to reach. In 2027, the Commission will put forward a proposal for a Council 
Recommendation, to support easier and integrated access to services. It will stress the 
role of social inclusion services, supporting a single access point throughout the territory, 
facilitating the provision of integrated support. It will aim to strengthen their outreach and 
proximity  to  recipients  and  the  reliance  on  a  rapid  assessment  of  the  needs  of  the  user 
followed by an integrated support plan. It will also support practices of peer-support among 
persons  experiencing  poverty,  recognising  their  firsthand  experience  and  knowledge  in 
facilitating access to services. 

Education and training, throughout the life cycle, have a key role in combating and 
preventing poverty. Access to quality education and training can help lift persons out of 
poverty or social exclusion, by giving them the skills required to find a quality job and to 
participate actively in society. Education can break the cycle of disadvantage at all stages 
of life – from early childhood through to adult learning and vocational retraining. However, 
the  socio-economic  background  of  students  remains  the  most  persistent  driver  of 
educational inequality in Europe. Systemic underfunding in deprived areas leads to teacher 
shortages,  higher  staff  turnover  and  fewer  experienced  educators,  resulting  in  less 
individualised support – precisely the conditions least suited for  disadvantaged children 
who cannot draw on compensatory resources at home. Later in 2026, the Commission will 
adopt  an  Education  Package,  which  will  include  a  Basic  Skills  Support  Scheme, 
supporting effective interventions at school level to help all children and young people, 
including those from disadvantaged backgrounds, attain an adequate level of basic skills 
by  the  end  of  compulsory  schooling  and  to  reduce  early  learning  inequalities.  Digital 
competences and skills have become essential to participate in society, take advantage of 
digital public services, and access the labour market. The Commission will continue its 
efforts that by 2030, 80% of European citizens will possess at least a basic level of 
digital skills, an essential condition for both current and future jobs.  

In the context of demographic trends, special attention should be given to access to 
long-term care services by the most vulnerable. This  is  particularly the case in rural 
areas, which face greater challenges with population ageing. Improving access to inclusive, 
affordable and quality long-term care can have a positive impact on recipients of care, but 
its poverty dimension extends also on informal carers – predominantly women. Caregiving 
responsibilities frequently curtail labour market participation, reduce pension accrual and 
limit income security. The EU has put in place dedicated instruments to support access to 
affordable high-quality long-term care (41). In 2027, the Commission will put forward a 
European Care Deal, which will guide reforms and investments for affordable and high-
quality  care  services  across  the  life  course,  with  specific  attention  to  those  at  risk  of 

(41)  Commission Communication COM(2022) 440 final of 7 September 2022 on the European Care Strategy 
and Council Recommendation 2022/C 476/01  of 8 December 2022 on access to affordable high-quality 
long-term care.  

11 

 
 
 
poverty, while addressing the structural causes of workforce shortages – the attractiveness 
and quality of jobs in the care sector.  

Extreme  weather  events  due  to  climate  change  disrupt  essential  services,  damage 
infrastructure and can push vulnerable social groups further into poverty and social 
exclusion. It is key to strengthen societal resilience in the face of climate impacts, which 
have  a  disproportionate  impact  on  vulnerable  households.  The  upcoming  European 
integrated  framework  for  climate  resilience  will  be  an  opportunity  to  address  these. 
More generally in relation to preparedness, experiences from recent crises demonstrate 
the  need  to  reach  out  and  target  particularly  disadvantaged  populations  and  those 
experiencing  discrimination,  poverty  and  social  exclusion,  with  a  view  to  improving 
communication and preventing disinformation. 

3.  STRENGTHENING  GOVERNANCE  AND  FUNDING  AND  IMPROVING  MONITORING  TO 

REDUCE AND PREVENT POVERTY 

Governance 

Addressing  and  preventing  poverty  is  a  significant  collective  responsibility. Acting 
together and at all levels is the only way to succeed in bringing the EU on the path towards 
the eradication of poverty by 2050. Public authorities and private actors, as well as social 
partners and civil society organisations are all called to play their part.  

The Commission calls on Member States to ensure anti-poverty policy frameworks 
are in place, at national, regional or local levels, as relevant. Increasing poverty is a 
challenge  in  all  Member  States.  Currently,  only  22  Member  States  have  national  anti-
poverty  strategies  or  similar  strategic  frameworks,  with  regional  and  local  authorities 
playing a central role in their governance and implementation. The Commission calls on 
all Member States to put forward coherent and more efficient strategies to combat poverty, 
and it is ready to support the Member States to deliver on reducing and preventing poverty. 
New investments and reforms need to be poverty proof. The Commission supports the 
use  of  distributional  impact  assessments  (42)  in  the  Member  States  and  will  provide 
additional  directions  on  the  use  of  such  assessments  in  their  national  budgetary 
frameworks, where feasible. 

Together with this Strategy, the Commission puts forward a guidance document to help 
national, regional and local authorities plan and improve their anti-poverty strategies 
and  frameworks  (43).  The  Principles  for  effective  anti-poverty  policies  reflect  the 
multidimensional nature of poverty in the design of strategies to combat and prevent it, 
associating  all  necessary  stakeholders  and  levels  of  governance. They  can  be  used  as  a 
structured  self-assessment  and  planning  tool  at  all  stages  of  the  policy  cycle:  from  the 
preparation or update of anti-poverty frameworks to the design of reforms and investments, 
and  the  review  of  the  implementation. The  Commission  services  will  support  their  use 
through policy dialogue and mutual learning among Member States. 

Reflecting  on  poverty  as  an  increasing,  complex  challenge  that  requires  coordinated 
responses  involving  investments  and  legislative  measures,  the  Commission  calls  on 
Member States to appoint an Anti-Poverty Coordinator, at the highest political level, 

(42)  Commission  Communication  COM(2022)  494  final  of  28  September  2022  on  better  assessing  the 

distributional impact of Member States’ policies. 

(43)  Commission  Staff  Working  Document,  Principles  for  effective  anti-poverty  policies,  supporting 

national, regional and local authorities in their fights against poverty, SWD(2026) 771. 

12 

 
 
 
to  coordinate  the  development  of  anti-poverty  policy  frameworks  and  ensure  their 
multidimensional nature. Their mission would be to oversee the design, implementation 
and monitoring of the frameworks, involving all relevant ministries and authorities. They 
will also support the implementation of the frameworks by regional and local authorities. 
Together  with  the  national  Anti-Poverty  Coordinators,  the  Commission  will  organise 
regular and effective exchanges of best practices in fighting poverty, by supporting mutual 
learning and enhancing their cooperation and supporting evidence-based decisions. 

In the framework of the European Semester, the Commission will continue providing 
guidance  to  the  Member  States  and  help  coordinate  relevant  national  policies. 
Through the integration in the Semester of the principles of the European Pillar of Social 
Rights (44), economic governance contributes to social resilience. The Semester identifies 
social  challenges  and  gaps  in  national  social  protection  systems,  while  recommending 
appropriate policy responses. In each of the last two Semester cycles, more than one third 
of Member States received a Country Specific Recommendation relating to poverty. It is 
important that Member States speed up their implementation. 

Besides Member States, the Commission will cooperate with other institutions and 
organisations  to  support  the  implementation  of  the  Strategy.  In  particular,  the 
Commission  will  continue  to  engage  through  an  informal  structured  dialogue  with  the 
European Parliament, notably with the Intergroup on Fighting Poverty. The Commission 
will also agree on a Joint Action Plan with the European Committee of the Regions by 
the  end  of  2026,  enhancing  cooperation  in  key  priority  areas  such  as  actions  fighting 
poverty at local and regional level. They will collaborate on the launch of an “EU Social 
Inclusion Award” (45) for cities and municipalities, to recognise innovative and effective 
actions  implemented  at  the  local  level  and  foster  peer  learning  by  enabling  cities  and 
municipalities to exchange good practices. By the end of 2026, the Commission and the 
European  Economic  and  Social  Committee  will  also  conclude  a  cooperation 
agreement, building on the existing framework for expert advisory support, and share best 
practices to address poverty. 

Building on the positive experiences during the consultation process for the Strategy, the 
Commission will scale up its cooperation with people experiencing poverty. It will put 
in place a dedicated forum to consult them in a structured way, regularly, on the design, 
implementation  and  monitoring  of  initiatives  aimed  at  combating  poverty  or  social 
exclusion, as well as in other policy areas that may affect their lives. The Commission will 
also continue to engage with civil society organisations (46), in a structured way to support 
the implementation of the Strategy. In parallel, social dialogue will continue playing a key 
role in finding balanced solutions in response to changes in the world of work (47). 

Funding 

(44)  Regulation (EU)  2024/1263  of  the  European  Parliament  and of  the  Council  of  29  April  2024  on  the 
effective  coordination  of  economic policies  and  on multilateral  budgetary  surveillance and repealing 
Council Regulation (EC) No 1466/97. 

(45) This Award will add to the already existing tools providing EU recognition and visibility to the efforts 

made by local and regional authorities. 

(46)  Commission Communication COM/2025/790 final of 12 November 2025 on the EU strategy for civil 

society. 

(47)  Commission Communication COM(2023) 40 final of 25 January 2023 on strengthening social dialogue 

in the European Union: harnessing its full potential for managing fair transitions. 

13 

 
 
 
In  light  of  the  urgent  need  for  action,  it  is  essential  to  ensure  sufficient  financial 
support for the fight against poverty. To scale up measures against poverty, public and 
private funding need to be more effectively mobilised at both EU and national levels. This 
includes  both  long-term  investments,  to  improve  the  delivery  of  services,  and  rapid 
emergency measures to prevent people from falling into poverty and reduce the length of 
poverty spells. In this regard, in the short term, special attention should be given to fund 
services assisting the transition of children in need to adulthood (bridging the European 
Child  Guarantee  and  the  Youth  Guarantee)  as  they  break  the  inter-generational 
transmission  of  poverty.  This  will  include  strengthening  early  identification  of  at-risk 
children,  expanding  mentorship  and  guidance  schemes,  outreach  and  other  support 
measures. Moreover, while the Strategy stresses that quality jobs are the best way out of 
poverty, ensuring that those excluded from the labour market are supported requires strong 
and well-funded public employment services.  

Currently, Member States are making use of the EUR 139 billion under the European 
Social Fund Plus (ESF+) (2021-2027) (48). The mid-term review of the cohesion policy 
programmes has allowed Member States to successfully reprogramme EUR 34.6 billion in 
their 2021-2027 cohesion policy funds towards the EU's most urgent strategic priorities. 
This has also resulted in a positive uptake in the thematic concentration requirements of 
the ESF+, with resources  dedicated to  addressing child poverty increasing by 5.4%  (an 
additional EUR 491 million) and material deprivation increasing by 3.5% (an additional 
EUR 211 million). In addition to ESF+, the EU supports the fight against poverty with the 
Cohesion Policy Funds such as the European Regional Development Fund, the Cohesion 
Fund and the Just Transition Fund and other funding programmes like the Social Climate 
Fund, InvestEU, Recovery and Resilience Facility, the Technical Support Instrument. The 
Commission calls on Member States to transpose the Emissions Trading System 2 (ETS2) 
and submit their Social Climate Fund plans without delay so that vulnerable households 
can be supported. The Commission will assist Member States to make maximum use of 
available EU funding and reallocate EU funds where feasible and in  line with  Member 
States’ and regions’ preferences to anti-poverty measures that can deliver lasting impact. 

Significant resources are also  being deployed through the Recovery and Resilience 
Facility  (with  a  total  budget  EUR  577  billion).  Recovery  and  Resilience  Plans  already 
include reforms and investments that are helping Member States contribute to combating 
and preventing poverty. These are to be completed by 31 August 2026, in line with the 
deadlines set in the Facility’s legal architecture. This can also be achieved by accelerating 
the delivery of relevant measures in the Recovery and Resilience Plans, and by making 
good  use  of 
the  Commission  Communication 
‘NextGenerationEU - The road to 2026’, where feasible within the RRF implementation 
deadline (31 August 2026) (49). 

indicators  provided 

the 

in 

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. Member States are asked to concentrate its resources on four types of social 
measures: social inclusion; food or basic material assistance; addressing child poverty and 
implementing  the  European  Child  Guarantee;  combating  youth  unemployment  and 

(48)  Out of the EUR 142 billion, EUR 95,1 billion comes from EU budget. 

(49) As an instrument designed to tackle the adverse consequences of the COVID-19 crisis in the Union, 
supported by extraordinary and temporary additional means, the RRF was created with very strict time 
limits that cannot be derogated from, as they are set in the EURI Regulation, the RRF Regulation and 
the Own Resources Decision. 

14 

 
 
 
implementing  the Youth  Guarantee.  The  proposed  EU  Facility  will  enable  to  continue 
supporting micro-finance and finance for social enterprises through a budgetary guarantee 
mechanism, as under the current Social Investment and Skills Window of the InvestEU. 

As part of our collective responsibility to fight and prevent poverty, the private sector 
can  make  a  major  contribution  and  take  further  action  to  addressing 
multidimensional  poverty  in  the  EU.  Businesses  and  philanthropic  organisations  and 
investors can strongly complement public resources and help scale up innovative solutions 
to  combat poverty, conducing  to  better welfare and opportunities for all in society, and 
stronger  prosperity  and  competitiveness.  To  better  enable  private  investments  to  be 
directed towards social objectives, relevant standards, concepts and methods matter. The 
Commission, in cooperation with the OECD, will explore the preparation of a voluntary 
marked-led framework of investable objectives. This will help investors design, assess and 
compare investment strategies consistently and flexibly.  

In  2026,  around  the  occasion  of  the  international  day  of  the  eradication  of  poverty  (17 
October), the Commission will launch a Coalition Against Poverty, bringing together 
socially responsible business and philanthropic organisations. The Coalition will serve 
as  a  European  platform  for  cooperation  and  mutual  learning,  encouraging  private 
companies and charities to contribute to preventing and reducing poverty and to help boost 
engagement  with  relevant  stakeholders,  delivering  meaningful  social  impact.  Coalition 
partners will sign a Charter setting common principles and actions for businesses of all 
sizes to support the fight against poverty. They will also make specific pledges, for instance 
to provide goods and services, implement social inclusion projects in the community where 
they  operate  or  support  the  integration  and  employment  of  specific  groups,  such  as 
vulnerable young people. 

The  Commission  will  continue  to  strengthen  its  cooperation  with  multilateral 
investment  banks  to  mobilise  funding  for  anti-poverty  measures.  The  European 
Investment Bank (EIB) Group supports inclusive growth by financing social infrastructure 
and essential services that enable people to participate fully in society and the economy. 
Looking ahead, the EIB Group aims to finance new social infrastructure investments 
to approximately EUR 22 billion in the period 2026–2027, strengthening the Group’s 
contribution to equal opportunities and shared prosperity across Europe. The Commission 
will continue to engage with the EIB Group on supporting investments reflecting the scope 
of the EU Anti-Poverty Strategy as well as the European Child Guarantee. Moreover, with 
an exclusively social mandate and focus on vulnerable people and those at risk of socio-
economic  exclusion,  the  Council  of  Europe  Development  Bank  (CEB)  will  continue  to 
support investments in human capital, inclusive and resilient living environments, access 
to finance and job creation, in the range of EUR 3 billion per year, across its EU members 
based on current lending volumes. The EU is strengthening strategic cooperation with the 
CEB, and to that effect, in 2026 the Commission adopted a proposal for the EU to become 
shareholder  of  the  CEB.  The  European  Commission  and  the  CEB  will  work  towards 
establishing  by  2027  a  Joint  Cooperation  Framework  to  strengthen  investments  to 
address poverty and social exclusion in the EU. 

Monitoring 

The  measurement  of  poverty  and  social  exclusion  in  the  EU  reflects  their 
multidimensional and systemic nature. The headline EU indicator of the risk of poverty 

15 

 
 
or  social  exclusion  (AROPE)  combines  three  dimensions (50):  monetary  poverty, 
deprivation in access to goods and services (51) and low work intensity.  

The  Commission  will  continue  to  monitor  progress  towards  the  EU  2030  target. 
Combating  poverty  demands  data-driven,  evidence-based  policymaking,  supported  by 
comparable high-quality indicators. The rapid pace of changes exacerbated by the cost of 
living,  as  well  as  significant  shifts  in  the  labour  market  and  workforce,  calls  for  better 
anticipation and stronger evidence that becomes available more rapidly. To this end, the 
Commission  will  improve  monitoring  of  poverty  and  put  forward  new  indicators  to 
measure the impact of affordability components on poverty, with a view to having 
them agreed by 2028 and identify a strong monitoring basis for progress towards the 2050 
ambition. The aim is to improve the timeliness and comprehensiveness of poverty-related 
data, including by enriching the measurement of material deprivation and standardising it 
at  EU  level,  and  to  explore  other  approaches  to  measure  both  affordability  and  severe 
poverty, and to have more granular indicators of territorial disparities. Subject to agreement 
with the Employment, Social Policy, Health and Consumers Affairs Council (EPSCO) and 
its advisory committees, this could then also lead to a review of the related indicators in 
the  social  scoreboard in  view  of  strengthening  the  relevant  analysis  in  the  Social 
Convergence Framework. This new set of indicators will reflect different dimensions of 
poverty, as well as affordability, such as access to basic goods and services essential for a 
decent life, and purchasing power, wealth and debt.  

The Commission stands ready to support the  Social Protection Committee, and where 
relevant, the Employment Committee, to contribute to the monitoring of the Strategy and 
serve as a forum for exchange among the Member States and with the Commission, while 
being mindful of not creating unnecessary administrative burden. 

The Staff Working Document accompanying this Strategy reviews the progress in the 
fight against poverty in the EU, with a view towards the 2050 ambition (52). Further 
joint work with the Social Protection Committee will include stress-testing the resilience 
of Member States’ social protection systems when confronted with potential shocks. 

Global efforts 

At  global  level,  EU  action  underlines  that  tackling  poverty  worldwide  is  vital  for 
shared prosperity, global security and stability. The EU has long been a global leader 
in  advancing  Sustainable  Development  Goal  1  on  ending  poverty  in  all  its  forms. This 
commitment is reflected in the more than EUR 26.6 billion directly allocated to this SDG, 
as  well  as  in  the  wider  scope  of  EU-financed  Official  Development Assistance  (ODA), 
where  all  SDGs  are  enablers  of  poverty  reduction.  The  Commission  will  continue 
cooperation with the United Nations to implement the SDGs.  

(50)  The EU headline indicator to monitor the risk of poverty or social exclusion combines three dimensions: 
relative monetary poverty (having a total disposable income below 60% of the national median); severe 
material and social deprivation (not being able to afford basic goods and services that are considered 
essential for a dignified life); and very low work intensity (the overall work spans are less than 20% of 
their total combined full-time work-time potential). 

(51)  This represents the proportion of the population experiencing an enforced lack of at least 7 out of 13 
deprivation items, which are described in the Commission Staff Working Document, Poverty in the EU 
– key trends and policies, SWD (2026) 770. 

(52) Commission Staff Working Document, Poverty in the EU – key trends and policies, SWD (2026) 770.  

16 

 
 
 
 
The EU’s enlargement process is a key accelerator for social inclusion, employment 
and  poverty  reduction  in  candidate  countries  and  potential  candidates,  while 
preparing  them  for  EU  membership.  Furthermore,  the  EU's  engagement  on  poverty 
reduction in candidate countries and potential candidates must be understood as a strategic 
investment in their societies, in their future integration and competitiveness of the internal 
market.  EU  support  is  mainly  channelled  through  the  Instrument  for  Pre-Accession 
Assistance and targeted measures are included under the Reforms Agenda for the Western 
Balkans, Moldova and Ukraine. 

4.  CONCLUSION  

Acting to prevent and combat poverty is more urgent than ever. The challenge ahead 
is immense. Determined, bold and concerted action is needed to help protect those living 
in poverty and to prevent others from falling into poverty in the context of increasing cost 
of living and hardship. This means making sure that every person has the opportunity to 
live  a  dignified  life,  access  quality  jobs,  affordable  housing  and  quality  and  affordable 
basic  goods  and  essential  services.  Everyone  should  also  be  empowered  to  reap  the 
opportunities  stemming  from  the  green  and  digital  transitions;  and  discrimination  and 
stigma should be combated so that no one is barred from integration into society and the 
economy. 

This strategy sets out the path to come closer to the EU 2030 poverty reduction target and 
to help eradicate poverty by 2050. Moreover, it puts forward EU tools to support Member 
States and stakeholders to step up their efforts and move forward together in a coordinated 
way. Combating  poverty effectively  and ensuring that living  in  the EU  equals living  in 
dignity require strong ambition. The EU needs to accelerate and join efforts at all levels, 
by  public  and  private  actors  alike,  and  deliver  on  a  coherent  strategy  with  the  strong 
involvement  of  civil  society  and  those  experiencing  poverty.  Only  in  this  way,  we  will 
contribute  to  improving  today,  setting  the  path  for  a  better  tomorrow,  breaking  the 
transmission the poverty and disadvantage and helping achieve a poverty-free EU by 2050.  

17 

 
 
Annex: List of new initiatives included in the Anti-Poverty Strategy  
Initiative 

Date  

1.  MEASURES TO TACKLE POVERTY IN EVERY AGE GROUP 

Communication  on  “Breaking  the  cycle  of  child  poverty  – 
Strengthening the European Child Guarantee” 
Launch  the  first-stage  consultation  of  European  social  partners  to 
obtain their views on the possible direction of EU action to support 
the  activation  of  persons  excluded  from  the  labour  market  and 
equality  between  women  and  men  with  regard  to  labour  market 
opportunities 
Commission  Recommendation  providing  evidence-based  policy 
guidance  to  prevent  and  combat  in-work  poverty  in  the  European 
Union,  followed-up  by  dedicated  structured  discussions  with  the 
Member States 
Report on the enforcement of Minimum Wages Directive, followed 
by mutual learning activities  
Compendium  of  best  practices  to  help  address  non-take-up  of 
benefits 
High-level exchange on integrated policies for dignified old age 

Together  with  the  EU 
Anti-Poverty Strategy 
2026 

2027 

2026 and continuous 

2027 

2027 

2.  MEASURES TO ADDRESS HORIZONTAL CHALLENGES THAT AGGRAVATE 

POVERTY 

Proposal Council Recommendation on fighting housing exclusion 

Update  of  the  Social  Protection  Committee  EU  Voluntary  Quality 
Framework 
Update 2023 Commission Report on Access to Essential Services 
Proposal Council Recommendation on  easier and integrated access 
to services 

Together  with  the  EU 
Anti-Poverty Strategy 
In  agreement  with  the 
SPC 
2027 
2027 

3.  STRENGHTENING  GOVERNANCE  AND  FUNDING  AND 

IMPROVING 

MONITORING TO REDUCE AND PREVENT POVERTY 

Principles for effective anti-poverty policies 

Conclude a cooperation agreement with the European Economic and 
Social  Committee  and  a  Joint  Action  Plan  with  the  European 
Committee of the Regions on actions supporting fight against poverty 
EU Social Inclusion Award 
Coalition Against Poverty with private sector and philanthropy 
Structured dialogue with persons experiencing poverty 
New poverty indicators  

Together  with  the  EU 
Anti-Poverty Strategy 
2026 

Launch in 2027 
Launch in 2026 
Launch in 2027 
2028 

18