Lithuania’s new government has pledged to raise pensions and child benefits as part of its program to combat poverty, but lawmakers and anti-poverty organisations warn the measures may be insufficient without broader increases in social spending.
Social Security and Labour Minister Jurate Zailskiene acknowledged that poverty in Lithuania was declining slowly. She said the government plans to implement the program’s anti-poverty measures soon, including raising pensions, adjusting pension indexing, and increasing child allowances to ensure that people feel a tangible improvement until 2027.
“Special attention will be given to pensioners, because they are the most affected by poverty. Many can no longer afford even basic food items,” Zailskiene said.
She noted the recently established food council would examine price disparities, citing examples such as sour cream costing EUR 1.80 in one store and EUR 2.80 in another.
Nearly half of Lithuania’s pensioners live at the poverty line, defined as an income at 60% of the national median. The country’s largest food charity, Maisto Bankas (Food Bank), serves more than 200,000 people nationwide who cannot afford food, with over 200 visiting its Vilnius location daily.
The organisation estimates that between 400,000 and 450,000 people nationwide struggle to afford basic necessities.
“We simply don’t have enough food to help everyone,” said Maisto Bankas head Simonas Gurevicius.
He suggested changes to VAT rules to encourage businesses to donate surplus food rather than letting it go to waste.
“If a retailer holds a product and doesn’t sell it, they get the VAT refunded. We should incentivise them similarly when donating food,” he said.
Linas Kukuraitis, chairman of the Seimas Social Affairs and Labour Committee, said raising pensions and child benefits was important but argued that social funding must increase across the board, including pensions, social allowances, employment programs, and access to services.
He criticised the government for refusing to raise the non-taxable income threshold and emphasised the importance of reducing absolute poverty, which had risen above 5.6% for children and seniors who struggled to make ends meet.
Aiste Adomaviciene, head of Lithuania’s anti-poverty network, said the government’s pension hikes could reduce poverty, and she welcomed plans to establish a council representing people with lived experience of poverty.
She stressed that people with disabilities remained trapped in poverty because the labour market was largely inaccessible, forcing many to rely on inadequate benefits.
Lithuania has made significant progress in reducing child poverty, from 28% to about 17-18%, thanks in part to increased child benefits, improved indexing, and a higher minimum wage.
Yet 8% of working adults still live near the poverty line.
Vilnius University professor Romas Lazutka said poverty was not only financial, pointing to “health poverty” as another concern. He praised government efforts to limit extra fees in private healthcare to ensure universal access.
Lazutka also warned that widespread poverty undermined economic growth because low consumer spending discouraged production and business activity, particularly in regions with lower incomes.
“Inherited poverty can be costly in the future,” Lazutka said, noting that children raised in impoverished households often experienced stress and worse health, increasing future demand for medical and psychological support, which imposed further costs on the state. (LRT)