In 2023, income inequality was at its lowest since 2014, and the annual at-risk-of-poverty rate remained at 10.9 per cent. Compared with other European countries, income inequality and at-risk-of poverty rates are low. After decreasing from 11 per cent in 2020 to 10.7 per cent in 2021, the at-risk-of poverty rate increased to 10.9 per cent in 2022. This increase was mainly driven by a large influx of Ukrainian refugees. A continuing large number of immigrants in 2023 kept the at-risk-of-poverty rate at the same level.
Over several years, there has been an increase in the at-risk-of poverty rate among recipients of disability pensions. In 2023, the rate for persons in households whose main income earner received a disability pension was 26.1 per cent, an increase from 23.9 per cent in 2020 and 16.9 per cent in 2013. The rate is especially high among single recipients of the minimum benefit, reaching 77.6 per cent in 2023. The share of disability pension recipients reporting housing costs as burdensome is increasing, and so is the share reporting material and social deprivation, such as being unable to replace worn-out furniture or clothes or to take part in leisure activities.
The at-risk-of-poverty rates are highest in groups with little or no employment. In 2023, the at-risk-of-poverty rate exceeded 60 per cent among recipients of social assistance and qualification bene-fits. Also, close to 50 per cent of those with reduced working ability not receiving Work Assessment Allowance (WAA) had incomes below the at-risk-of-poverty threshold. The rate among recipients of WAA was 34.6 per cent. These rates are equal to or slightly lower in 2023 compared with 2020.
Over the last four to five years, incomes in households with children has increased, reducing the at-risk-of-poverty rates among children. This was offset by high immigration, causing an increase in the rate in 2022 and an unchanged rate in 2023. Single-person households are also more exposed to low income than the rest of the population. At-risk-of poverty rates are especially high among singles under 35, but the rates have increased among those aged 35-66, especially among those with little or no employment.
Immigrants, especially new arrivals, are more exposed to low income than others. At-risk-of poverty rates among Norwegian-born to immigrant parents have declined in recent years, closing in on the average rates.
Persistent at-risk-of poverty rate (below 60 per cent of three-year average income) was 9.2 per cent in 2023, the lowest since 2014. However, newly arrived immigrants are not included in the population for this indicator. Persons in persistent at-risk-of poverty report more often than others economic strain and health problems. There is also a higher share reporting low quality-of-life scores.