the accuracy of measuring deprivation, broaden the scope of the aspects of living conditions and societal needs by incorporating an updated item list, and provide a more comprehensive assessment of social exclusion for those within the working age bracket, extending from 18 to 64 instead of the previous 18 to 59 (Table 1).<sup>17</sup>

**The severe material and social deprivation rate (SMSD), adopted by the Indicators' Sub-Group (ISG) of the Social Protection Committee (SPC), distinguishes between individuals who cannot afford a particular good, service, or social activity** . It is defined as the proportion of the population experiencing an enforced lack of at least 7 of 13 deprivation items (7 related to the household and 6 related to the individual) (Table 2).

**Table 1.** Changes in AROPE definition to meet EU objectives by 2020 vs. 2030

|**Component**|**Europe 2020**|**Europe 2030**|
|---|---|---|
|**At risk of poverty**<br>**rate (AROP)**|Percentage of persons in the total<br>population who are at-risk-of-poverty|Percentage of persons in the total<br>population who are at-risk-of-poverty|
|**Low work**<br>**intensity**<br>**indicator (LWI)**|People aged 0-59 years living in<br>households where the adults (those<br>aged 18-59, but excluding students<br>aged 18-24) worked a working time<br>equal to or less than 20 % of their<br>total combined work-time potential<br>during the previous year|People<br>from<br>0-64<br>years<br>living<br>in<br>households where the adults (those aged<br>18-64, but excluding students aged 18-24<br>and people who are retired according to<br>their self-defined current economic status<br>or who receive any pension (except<br>survivors pension), as well as people in the<br>age bracket 60-64 who are inactive and<br>living in a household where the primary<br>income is pensions) worked a working<br>time equal or less than 20% of their total<br>combined work-time potential during the<br>previous year|
|**Severe material**<br>**(and social)**<br>**deprivation rate**<br>**(SMSD)**|Severe material deprivation rate<br>(SMD): Proportion of the population<br>that cannot afford (rather than the<br>choice not to do so) at least 4 out of<br>9<sup>18</sup><br>predefined<br>material<br>items<br>considered by most people to be<br>desirable or even necessary to lead<br>an adequate life|Severe material and social deprivation<br>rate (SMSD): Proportion of the population<br>experiencing an enforced lack of at least 7<br>out of 13 deprivation items (6 related to<br>the individual and 7 related to the<br>household)|

Source: Eurostat - <u>https://ec.europa.eu/eurostat/statistics explained/index.php?title=Glossary:At_risk_of_poverty_or_social_exclusion_(AROPE)</u>

> 17 The changes include: 1) Refining the criteria for severe material deprivation to establish a novel severe material and social deprivation rate, expressed as a percentage of the total population lacking a minimum of 7 items of 13 material and social deprivation components, and 2) Introducing the (quasi)-jobless household indicator, defined as "individuals aged 0-64 residing in households where adults (those aged 18-64, excluding students aged 18-24 and individuals self-identified as retired or recipients of any pension, except survivor's pension) worked for a duration equal to or less than 20% of their total potential work time during the preceding year.”

> 18 The indicator measures the percentage of the population that cannot afford at least four of the following nine items: 1) pay their rent, mortgage or utility bills; 2) keep their home adequately warm; 3) face unexpected expenses; 4) eat meat or proteins regularly; 5) go on holiday; 6) a television set; 7) a washing machine; 8) a car; 9) a telephone.

8