Conditions still bad for low-income households post-Covid, UN study shows

Conditions still bad for low-income households post-Covid, UN study shows

Unicef says households led by women and persons with disabilities are the worst off, with children having to go with two meals or less a day.

Despite higher employment and rising income levels, conditions have hardly improved for those in the lower-income group in Kuala Lumpur.
PETALING JAYA:
The Covid-19 crisis may have eased and people are returning to work, but conditions for most in the lower strata of society remain relatively unchanged or have worsened, a new survey shows.

For instance, one in every two children in the lower income group in Kuala Lumpur are now eating only two meals or less per day.

At least half of all households in the city say their financial situation has deteriorated compared with 2022 when the pandemic was at its height.

The increase in the cost of living, especially food prices, has also had a severe impact on 90% of households, the study by Unicef shows.

The main objective of the study, titled “Living On The Edge”, is to provide evidence-based insight into the post-Covid-19 situation, particularly on the increased cost of living.

A total of 755 low-income households were covered in the study, which shows that 40% of children in such households now live below the poverty line.

It said that while the heads of most households have returned to work, and family income has risen, the poverty rate remains high.

“Women, children and persons with disabilities are the most badly affected,” Unicef the UN’s children agency said in the report released to the media today.

On the whole, the median monthly household income has risen. On average, it has gone up by 32% to RM3,000.

For households led by women, it has risen 23% to RM1,600 compared with that for 2019. Nonetheless, it is still below the 2022 poverty line of RM2,589.

The worst off are those in households led by persons with disabilities, where average monthly income is just RM1,550.

Unicef also noted that while the unemployment rate has fallen, leading to a similar decline in the poverty rate, the incidence of poverty remains high.

The Unicef report said that overall, the poverty rate dropped to 41% in October 2023 from 45% in March 2021.

In households led by women, the rate also improved, albeit marginally, from 62% to 59%.

Households led by persons with disabilities continue to record the highest rate of poverty at 67%.

Unicef said the condition can be attributed to the fact that while the cost of living has risen, wages have not increased accordingly.

“Eight out of 10 households now struggle to generate sufficient income to meet basic living needs,” it said. During the pandemic, seven of every 10 households faced the same problem.

The UN agency said these issues have had a negative impact on mental health, with many reporting higher levels of stress.

“Many have called on the government to raise wages and welfare assistance,” it said.

The agency said cash assistance and price controls on food items are considered the most beneficial but fuel subsidies are generally not seen as helpful.

“Only 7% of those surveyed expressed support for this policy,” Unicef said.

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