Poverty remains high

A 150-franc increase in the monthly rent, 30 francs more in additional costs, 80 francs extra for health insurance premiums: the rising costs add up and increase the risk of financial distress. Unfortunately, the situation has not eased in 2024.

Pressure on poorer households is increasing

More than 1.3 million people in Switzerland live below or just above the poverty line. That’s 15 per cent of the population. For them, the rising prices of basic needs such as housing and healthcare have a devastating effect. The money that they spend on higher rents, utility costs and health insurance premiums, they have to save elsewhere. Wages and pensions are not keeping pace with price increases.

Particularly households with children suffer from the high cost of living. They are twice as likely to experience poverty as childless households. One in four single parents lives below the poverty line.

There are many reasons for the increased risk of poverty. «On the one hand, young children need a lot of care – so parents either have to reduce their working hours or accept high childcare costs. On top of that, there are additional expenses for housing, food and clothing», says Aline Masé, head of social policy at Caritas Switzerland. On the other hand, social benefits for families in this country are low by international standards, for example state support for childcare.

The need for relief is growing

The fact that the situation of many people in Switzerland is deteriorating is reflected in the increasing demand for our services. For example, the Caritas markets have never been as busy as in 2024. Since the coronavirus pandemic, the number of customers has been continuously increasing. The same applies to the «KulturLegi»: 197,000 people had a card at the end of 2024, almost twice as many as five years ago. The number of enquiries to the social and debt counselling service is also at a high level. For example, in the regions of Aargau and Solothurn, 16 per cent more people sought help last year than in 2021.

«Our services can alleviate the hardship somewhat. However, more is needed to finally provide sustainable relief for people affected and at risk of poverty», emphasises Aline Masé, adding: ‘State measures such as income-dependent rent subsidies, affordable childcare and additional premium reductions would be an important relief for people who can hardly afford their living expenses.’ Caritas therefore welcomes the federal government’s decision to develop a long-overdue national strategy to combat poverty by 2027.

• Our services against poverty