Italian social and economic welfare challenges

Italy is experiencing various social and economic pressures affecting households, particularly regarding the cost of living and the care economy. Inflationary pressures, with consumer prices estimated to have risen by 4.2 percent by September 2026, have made basic necessities like groceries and utilities difficult for families to afford.

In the healthcare and social sectors, the closure of residential facilities has caused distress for elderly residents and their families. This is compounded by a reliance on an informal care economy; for instance, unpaid care provided by grandparents is estimated to save families approximately 12,518 euros per year.

To address these issues, the state maintains a complex landscape of approximately 800 active subsidies and bonuses, ranging from rent assistance to utility discounts. However, the proliferation of these diverse measures has led to questions regarding their effectiveness and potential systemic distortions within the welfare system.

Recent data from the States General of Welfare and Eurostat highlights growing economic fragility and social exclusion. While the European Union aims to reduce the number of people at risk of poverty or social exclusion by 15 million by 2030, Italy faces specific vulnerabilities such as stagnant incomes, persistent inequality, and regional disparities. In the Trentino region, approximately 50,000 people (8.9%) are at risk of poverty, including 40,000 individuals experiencing ‘working poverty’—those unable to sustain themselves despite being employed. Experts have noted that social mobility has stalled, noting a high likelihood of children born into poverty remaining in that condition. Discussions have emphasized the need for policies addressing energy poverty, housing, and the intersection of loneliness and education.