Social transfers are most often defined as „current transfers received by households during income reference period intended to reduce financial burden of many unpredictable situations or needs, made through collectively organized schemes, or outside such schemes by government bodies or non-profit institutions providing services to households (NPISH)” [1].

To some extent they directly serve poverty reduction. These transfers include: family-related benefits; housing allowances; uneployment benefits; retirements and social assistance. Despite this diversity, these transfers play a significant role in reducing poverty. Comparing the risk of poverty rate before social transfers (all) in project’s partners countries, the evident influence they have on reducing the risk of poverty can easily be seen (Table 1, Graph 1). Depending on a country, the transfers reduce these figures from 5,5% (Romania and Italy) to even 10,4% (the Netherlands).

Table 1. Risk of poverty rate, before and after social transfers

Country of residence Before social transfers After social transfers
In all Children before 18. In all Children after 18.
Estonia 25,4 27,5 18,5 18,1
Spain 30,0 38,0 20,4 27,5
The Netherlands 20,8 23,9 10,4 12,6
Poland 23,0 29,9 17,1 23,2
Romania 27,8 40,0 22,3 32,1
Italy 24,6 33,6 19,1 24,8

Source: own work based on: EUROSTAT, data for 2013 (http://ec.europa.eu/eurostat/data/database)

Graph 1. Comparison of indicators for risk of poverty rate, before and after social transfers in households altogether

 

Source: own work based at: EUROSTAT, data for year 2013 (http://ec.europa.eu/eurostat/data/database)

Source:

[1] http://stat.gov.pl/metainformacje/slownik-pojec/definicje-pojec/3202,pojecie.html