Why does Spain have the highest rate of child poverty? Because of flawed public policies.

The figures for child poverty in Spain are, in short, shameful. Spain, which ranks in the upper-middle tier of Europe in terms of per capita income, has the highest child poverty rate in the European Union, at 29.2% compared to the average of 19.3%, followed by Bulgaria (28.2%) and Romania (26.2%). Moreover, this situation is worsening (unlike the overall poverty rate, which includes adults and has decreased). The gap with the EU average has widened in the last two years, reaching 9.5 percentage points in 2023 and 9.9 in 2024.

More shameful statistics: Spain fares poorly in terms of the risk of poverty or social exclusion among those under 18, with 34.6% compared to the European average of 24.2%. Compared to other countries, it has a marked generational gap: the difference between the incidence of poverty or social exclusion among minors and adults is more than 10 percentage points higher, one of the highest.

But why is there so much child poverty? The study "Child poverty in Spain: recent evolution and policies", prepared by economists Miguel Ángel Malo and Fernando Pinto and published by Funcas, has found several explanations that, together, explain this reality.

“It is not enough to invest more: it is necessary to invest better,” the authors say.

These include the structure of social benefits for children, their low amounts, and their lack of universality, which reduces their effectiveness. In fact, this study points out that the tax and transfer system in Spain reduces child poverty by only 1 or 2 percentage points, while in benchmark European countries the impact is 4 to 8 percentage points.

Another factor explaining Spain's disparity with the rest of Europe is the structural deficit of social and affordable rental housing. While the European average for subsidized or protected housing is around 7% of the housing stock, in northern and central European countries it reaches between 15% and 25%. However, in Spain, coverage barely reaches 2%. This deficiency exposes households with children to a disproportionate housing burden that erodes their disposable income and amplifies the risk of poverty.

Parental education level is another relevant factor. In fact, a higher level of parental education does not offer as effective protection in Spain as in other European countries: the child poverty rate among children of parents with tertiary education reaches 18.9%, compared to the EU average of 11%. “This figure points to a rigidity in the mechanisms of upward social mobility and the existence of barriers that are not neutralized solely through the accumulation of human capital,” the study notes.

The authors believe that breaking this cycle requires rethinking public policies aimed at children. “It is not enough to invest more: it is necessary to invest better. A comprehensive approach is needed that combines improvements in the education system, incentives for stable and decent employment for parents, expansion of child benefits, and strengthening of housing policies,” the study concludes.