Quarter of Luxembourg Households with Children Struggled to Make Ends Meet in 2023, Report Finds

A new report from Statec, Luxembourg's national statistics office, reveals that a quarter of households with children in the country are facing difficulties making ends meet. The report, released on April 25, 2024, highlights the financial challenges faced by families, particularly single parents and those of Portuguese nationality.

According to the report, 26% of family households experienced financial difficulty in 2023, while 22.4% of all households in Luxembourg struggled financially, a 2 percentage point increase from 2022. The demographics most affected were renters, single parents, and people with Portuguese nationality, as well as young people under 25, with nearly 30% of those aged 16-25 saying they had trouble covering expenses.

The report found that people of Portuguese nationality, households who rented, and single-parent families were the most affected, with more than three out of ten reporting difficulty meeting financial obligations. Between 2022 and 2023, residents of French nationality, homeowners with outstanding loans, and single-parent families saw the greatest deterioration in their financial capacities.

Why this matters: The report sheds light on the growing financial struggles faced by a significant portion of Luxembourg's population, particularly families with children. The findings emphasize the need for targeted measures to support vulnerable demographics and address the widening economic disparities in the country.

Despite the increase in financial difficulties, Luxembourg's situation remained better than other EU member states, with the country having the lowest proportion of households finding it very difficult to make ends meet in 2022 at 1.5%, ahead of the Netherlands and Finland. The government is taking measures to address the situation, such as plans to relieve taxpayers in class 1A, but some support measures like the energy price cap will expire in 2025.

Key Takeaways

• 26% of family households in Luxembourg faced financial difficulty in 2023.
• Renters, single parents, and Portuguese nationals were most affected.
• Nearly 30% of 16-25 year-olds struggled to cover expenses.
• Luxembourg's situation was better than other EU states in 2022.
• Government plans to address the issue, but some measures will expire in 2025.