Single parent households and young people have been particularly hard hit by the pandemic economic crisis, says Caritas ( Photo: Shutterstock)

Single parent households and young people have been particularly hard hit by the pandemic economic crisis, says Caritas ( Photo: Shutterstock)

A virus helpline set up by Caritas received 445 requests for support between April and August, saying that more than 90% of callers were unable to meet basic living and housing costs.

For two thirds of them, it was the first time they needed social support or at least the first time in more than a year they required help. More than a quarter of people who sought support from Caritas were younger than 30 years of age, with another 32% of callers aged 31 to 40.

Official unemployment figures published in September also showed the younger generation suffering more from the economic impact of the pandemic, with the number of jobseekers under 30 up by more than a third year on year.

Single parent families accounted for 39% of people calling the Caritas virus helpline, the organisation said.

Caritas warned that the pandemic risked exacerbating social inequalities in the country. A study by national statistics office Statec in 2019 showed that the richest 10% of the country had an income ten times higher than the funds available to the poorest 10% of households.  

Solutions

Caritas urged the government to reconsider redistributing wealth more equitably, for example through tax reform--such as adding higher brackets for top earners--and introducing a wealth tax.

A push by opposition parties in parliament to increase property taxes failed last month after prime minister Xavier Bettel already dismissed introducing wealth and inheritance taxes, saying such a measure did not form part of the 2018-2023 coalition agreement.

But the public might be more open to the suggestion than policymakers. A survey by tax consultancy Atoz published on 30 September listed wealth and resource distribution as the fourth most pressing concern of respondents, behind the environment, consumerism and the role of the EU.

And half of respondents said the government should propose solutions to tackle these issues.

Other proposals by Caritas included the indexation of family benefits, relieving financial burdens for single-parent households, raising the minimum guaranteed income (REVIS), making state support more accessible and stepping up the development of affordable housing.