Working poverty, which affects people who are employed but unable to meet their basic needs, has a more severe impact on households with three or more children, where it stands at 19%, more than double the average (8%). This is revealed in the latest European Employment and Social Outlook – Quarterly Review (January 2026) report, produced by the European Commission, which finds that poverty has a particularly severe impact on large families.
This study, entitled ‘Who are the working poor?’, analyses working poverty and social conditions in Member States and confirms that household size is a determining factor in the risk of exclusion. In particular, families with three or more children are clearly more vulnerable than the European average, which is 11 points higher and more than double that of all households in Europe, with or without children.
The pressure of childcare costs
Produced by the Directorate-General for Employment, Social Affairs and Inclusion (DG EMPL), the report highlights that, although employment reduces the risk of poverty, it does not eliminate it for many households with high family responsibilities. The costs associated with raising children — housing, food, education and energy — put additional pressure on income, even when there are employed members, so that in-work poverty and the risk of relative poverty increase progressively with the number of children in the household.
In this context, the 19% recorded in families with three or more children reflects a structural gap compared to households without children or with one or two children. In the case of households without children, the poverty rate reaches 7%, and in the case of families with one or two children, it stands at 8% and 9%, respectively. Poverty is more acute in large families, affecting 1 in 5 workers with three or more children, according to Eurostat 2024 data.
The risk of poverty also tends to be higher in households that include adults who do not work. This situation has a particularly significant impact when one or more adults reduce their working hours or stop working due to family responsibilities or caring for dependents, according to the study.
Household size, a structural risk factor
There are profiles that are particularly exposed to greater social vulnerability and are affected by in-work poverty. In this context, the number of children directly increases the probability of falling below the poverty line.
The study points out that in-work poverty is linked to the quality of employment, household composition and worker profiles. Among other factors, workers are at greater risk of poverty in cases where they have low incomes, work part-time, have temporary jobs, have a lower level of education, etc.
Tackling poverty requires a combination of policies that support greater work intensity and promote higher-quality employment, such as adequate wages and support for flexible working arrangements to balance work and family life. Finally, the report highlights the need to provide adequate support to vulnerable households, such as those with a large number of children or dependents.
Access the full study HERE