Livelihood security
Livelihood security is a concept that we increasingly encounter in reports, policy documents and in the media. The term is also often used within the municipality of Utrecht. In this feature article, we will delve deeper into the concept of livelihood security (what it is, who and how many people are affected). We will also consider what this means in Utrecht. We do this by zooming in on four aspects that are strongly related to or threaten livelihood security:
Livelihood security
Livelihood security
Livelihood security is a multi-faceted concept
According to the Dutch Council for Public Health and Society (RVS), livelihood security is a combination of uncertainty about finances and income, housing, health, development opportunities and the social network. The precise definition differs slightly among different institutes and advisory bodies. For example, the Netherlands Scientific Council for Government Policy (WRR) and Movisie argue that inadequate livelihood security involves three forms of insecurity: income insecurity (including stress and postponement of spending), psychological insecurity (physical complaints, loneliness, depression, low well-being and poorer work performance) and life-course insecurity (independent living and family planning). The Association of Dutch Municipalities (VNG) describes livelihood security as a basic security of income, work and a government that supports you (and inspires trust). The WRR also indicates that control over your own life (control of your living conditions) is important (WRR, 2023a).
What all definitions have in common is the idea that it is rarely a single aspect that brings about livelihood security. The different aspects often have a reinforcing effect on each other. Livelihood security is a persistent problem. In this context, it is also referred to as a corrosive disadvantage, because livelihood security, like corrosion, is likely to spreads its problems to other areas of a person’s life.
Different ways of finding yourself in a state of livelihood security
In its advisory report, RVS identifies several typical ways in which people end up and remain in a state of livelihood security (in part based on the Faces of an Uncertain Existence study (gezichten van een onzeker bestaan)):
- Slide. People who have a relatively secure existence but then slowly find themselves in a state of livelihood insecurity owing to an unfortunate accumulation of setbacks and ever-shrinking assets. The authorities are often slow to identify this group.
- Revolving door. People whose livelihood security has a more cyclical character with difficult and better periods in their lives.
- Swamp. People who live in a permanent state of livelihood insecurity. They are disadvantaged when it comes to all aspects of livelihood insecurity, often from birth.
At least one in six adults is in an actual or threatened state of livelihood security
Livelihood security is a concept that is difficult to measure. It is difficult to determine from statistics whose livelihood is impaired. As mentioned, it often involves an interplay of multiple problems/contexts. It is also a feeling people have, which is difficult to measure. National research shows that we can, in any case, say that about one in six adults is dealing with livelihood insecurity or threatened livelihood security (RVS, 2024). For Utrecht, these numbers are possibly higher. This is based on the knowledge that there is an over-representation of low incomes in Utrecht compared with the national picture and that, for example, there is an above-average shortage in the Utrecht housing market. Research where the various characteristics of existence are analysed in conjunction with each other is needed in order to better determine the size and characteristics of the group in a state of actual or threatened livelihood security.
Groups that often live in a state of livelihood insecurity
Which groups’ livelihood security is impaired (Movisie, 2022)?
- People with little capital (income, assets), with no education or secondary education, few social contacts and a minimally useful network (The Netherlands Institute for Social Research (SCP) calls this group the precariat).
- Insecure wage earners are slightly better educated, slightly healthier and have a slightly larger network than the first group. However, they do not naturally find access to the labour market (many temporary jobs, little self-confidence).
Recent research by the NIDI also shows that the current group of young people (25-35 years) is a much more vulnerable group than their predecessors (until 2006). They have more often completed a college or university degree, are more often in productive employment, work more hours and are rarely unemployed. However, this does not translate into a better, more stable economic and housing situation. This makes them vulnerable in situations of economic hardship and makes some feel insufficiently secure to start a family, and so they postpone doing so for that reason. Incidentally, insecurities tend to accumulate (for example, income and housing), and this mainly occurs among young people, low-income households and low-middle-income households.
Livelihood security and health affect each other
People who live in a state of livelihood insecurity often have to deal with an accumulation of problems in all kinds of areas. Health can be negatively affected by these multiple problems, for example, because insecurity causes stress and can make people sick (VNG). Conversely, health problems can exacerbate problems in other areas (Movisie 2022 based on Stronks and Dreamers). There is a strong interaction between livelihood security, a sense of having a grip on life and health (WRR, 2023a).
Below is a more detailed description of four aspects of livelihood security, in which we discuss the situation in Utrecht.
Financial security
Poverty levels stable, long-term poverty on the rise
Compared to other Dutch cities, Utrecht has relatively high incomes on average, although the group in the lowest income group, as in other cities, is larger than the average in the Netherlands (but lower than in the G3-cities Amsterdam, Rotterdam and The Hague). The number of households with an income of up to 125% of the statutory social minimum (WSM) – the poverty line used in Utrecht – is comparable with the year before, with more than 22,000 households in 2022. At a lower limit of 101% WSM (social welfare benefit level), 11,800 households are still affected. This group has been stable for several years. The growth of the city has led to a decrease in the share of both groups (125% and 101% WSM) for several years. However, an increasing share of households live on income at maximum social welfare benefit levels for a long time (2017: 3.7%, 2020 and 2022: 4.1%). This group, in particular, is often economically less resilient (structurally low income, few assets and sometimes even debts). An overview of the various poverty definitions can be found on the CBS website.
More people say they can't make ends meet
In the Inwonersenquête (Population Survey) conducted at the end of 2023, about 7% of Utrecht residents indicated that they are unable to make ends meet. In 2021, the figure was 5%. This increase seems to be mainly because of the loss of purchasing power in 2022; in 2023, purchasing power recovered slightly (nationally), but is not yet back to the level before 2022.
7.6% of households have problematic debts
The share of households with problematic debts has been increasing since 2020. At the beginning of 2023, this was 14,230 (or 7.6%) of Utrecht households. In 2021, the figure remained 6.6%. Nationwide, the share of households with registered debts is higher on average (8.8%). And it is significantly higher in the G3 (12%-16%).
Work and participating in society
Paid work provides financial security, but there is also poverty among wage erangers
Having paid work and thus a structural income is an important aspect of people’s livelihood security. Utrecht has a strong employment function in the region. In addition, the number of jobs in the city is currently growing faster than the number of residents. Unemployment is low (especially for a large city) and the employment rate is high among both men and women.
However, paid work does not mean financial security for everyone. Poverty also occurs among working people. For Utrecht, it was calculated for 2022 that 23% of residents with an income of up to 125% of the WSM had paid work (CBS). In 2021, more than 200,000 working people were living in poverty nationwide (Goderis & Muns, 2024). These are people who have less to spend than the SCP’s ‘not much but enough criterion’. This mainly concerns the following groups: self-employed people, freelancers, part-timers and middle-income earners who earn just too much to be eligible for allowances (rent, healthcare, childcare). The share of the poor among the self-employed has fallen in recent years thanks to a better-performing economy, the Temporary Bridging Scheme for Self-Employed Persons (Tozo) and tax measures.
Finally, it should be noted that the labour market is not inclusive. Despite the tight labour market, the following groups have structurally difficult access to the regular labour market: migrants, the elderly, people with disabilities, the long-term unemployed and those entitled to social welfare benefits in the long or short term (Movisie, 2022).
82% participate in society
About 82% of Utrecht residents ‘participate’ in society, but participation is not an automatic process for everyone. A resident ‘participates in society’ if three of the following four aspects are covered: performing work voluntarily or otherwise or doing a training course, participating in sports/cultural activities, being active in the neighbourhood and having social contacts Inwonersenquete (Population Survey 2023). The differences in the city are large. In particular the following groups are significantly less likely to participate: Utrecht residents over the age of 65 (61% participate), residents without education or with primary education/pre-vocational secondary education (51%), residents with a disability (64%) and residents who have difficulty making ends meet (58%).
Social relationships can offer support in absorbing the financial and other risks of social and economic insecurity. They are a kind of informal form of social security. Many flexible workers, for example, indicate that they use this safety net. Long-term poverty is often accompanied by a limited social network (Movisie, 2022).
Housing
Having a home or suitable place to stay has a direct impact on livelihood security. Some people with permanent housing may find that it no longer meets their requirements or suits their stage of life. This can lead to them postponing starting a family, for example.
Very tight housing market
The Utrecht housing market is very tight. Many people (especially young people and first-time buyers and renters) who would like to live in Utrecht, have found this almost impossible in recent years. This is also reflected in the figures. The waiting list for social housing in Utrecht has been around 11 years for some time now. For students, the waiting list for a room provided by SSH is almost four years. The prices of owner-occupied homes have risen sharply in recent years. And the high rents in the private sector are unaffordable for many. The part of the income that tenants spend on housing costs is the highest in this sector. For the under-35 age group, this front-end ratio is on average almost 50%. In recent years, the building of houses in the mid-market rented house category (in 2023: between 808 and 1,127 euros per month) has attracted much attention. The share of mid-market rented houses within the total housing stock has meanwhile risen to 16%, while the share of expensive rentals (more than 1,127 euros per month) remains constant.
Increasing pressure on the housing market due to the housing of priority groups
Priority groups include people in urgent need, people leaving emergency accommodation and sheltered housing, and asylum permit holders. In some cases, priority groups are given priority in the housing market, making it harder to provide accommodation for mainstream groups. For instance, in the first half of 2024, Utrecht’s target is to provide accommodation for 627 asylum permit holders.
Over 2,000 homeless people in Utrecht
There were about 2,077 homeless people with entitlements in Utrecht in 2022 (entitled to social benefits in Utrecht). The largest group of homeless people ended up on the streets as a result of eviction. Almost half of this group is seen on a daily basis by providers of shelter and assistance.
Access to healthcare and facilities
15% receive informal help; 27% struggle to use the internet to submit applications
People who have lost their livelihood security are often entitled to healthcare and other specific services. Access to healthcare and other facilities is linked to self-reliance and digital self-reliance. For this group, in particular, access to services is often not an automatic process. In Utrecht, 15% of residents said they receive household help, help with care, financial matters, administration and/or use of the internet Inwonersenquête (The Population Survey 2023). In addition, more than a quarter of Utrecht residents (27%) indicated that they have difficulty using the internet for submitting applications or making appointments. This is especially common among residents over the age of 65 and residents without education or with primary education or pre-vocational secondary education. Within these groups, half of the residents are affected.
High pressure on healthcare puts pressure on waiting lists
During the pandemic, it was not possible to provide residents with the healthcare they needed. At that time, 13% indicated that they did not receive the necessary healthcare. In 2022, this fell to 7%, a smaller share than before the pandemic. However, the pressure on healthcare is consistently high, which is reflected in waiting lists, among other things. In addition, the overall health picture has deteriorated, as evidenced by the growing proportion of adults who experience a lack of control over their lives and adults who experience loneliness.
Efforts made by the municipality: striving for better access to poverty reduction schemes
The municipality of Utrecht has various poverty reduction schemes for low-income residents. The scope of these schemes is limited: not everyone who is entitled to them succeeds in making a successful application. The policy document ‘Financiële Bestaanszekerheid’ of the municipality of Utrecht explicitly includes the accessibility and scope of poverty reduction schemes (by removing thresholds).
Publicatiedatum: 24-04-2024