The United Way of Delaware and its research partner United for ALICE offer an update on struggling households in the state, and it shows the number struggling is increasing despite wage growth.
According to updated data, the number of households struggling to get by in Delaware grew by more than 1,250 from 2021 to 2022, even though wages for the lowest-paid jobs are rising at the fastest rate in four decades.
"It's pretty tremendous the number of people who are either living below the poverty line or are below what we call the ALICE threshold which is a survival budget the bare minimum,” said John Fisher-Klein, director of public policy and engagement for the United Way of Delaware. “And in Delaware that's over 153,000 people or 38% of our population so quite a few of us."
ALICE stands for Asset Limited, Income Constrained, Employed, and ALICE workers include childcare providers, home health aides and cashiers or those working low-wage jobs with little or no savings and one emergency from poverty.
The update also shows the basic costs to live and work in Delaware for a family of four with an infant and preschooler excluding tax credits rose by over $4,700 in 2022 from 2021.
The update found that between 2010 to 2022 those 65 and over made up the fastest-growing age group in Delaware and that group saw the largest increase in the number of households struggling to make ends meet - 54%.
Fisher-Klein says there are also notable racial disparities.
"There are still some pretty significant racial disparities, 54% of Black households in Delaware fall below the ALICE threshold, 50% of Hispanic households are below that threshold, while about 33% of white households fall below the ALICE threshold so you know much higher percentage of people of color," said Fisher-Klein.
Fisher-Klein notes the United Way of Delaware has a financial empowerment program to help the older population, and the United Way is calling for policy change through the Delaware Racial Justice Collaborative to help ensure wealth growth for all populations.
And food assistance is not providing relief to many. Partly due to SNAP eligibility levels, only 35% of all households in poverty and 21% of ALICE households in Delaware participated in SNAP in 2022.
