More LV families struggling to afford essentials, UW report shows

A new United Way of Pennsylvania report reveals that some 136,500 families in the Greater Lehigh Valley are suffering financial struggles.

Per the report, that accounts for approximately 47% of the households in Lehigh, Northampton and Carbon counties, an increase of 17% since 2021, who are living paycheck to paycheck.

“This data further confirms what your local United Way and so many of our partners have experienced during the past several years,” Marci Lesko, Chief Executive Officer, United Way of the Greater Lehigh Valley, said in a statement. “With steep increases in housing, food and childcare costs, families simply cannot afford what they need to live, let alone thrive. We remain committed to helping people access the critical resources they need today, while working to develop the long-term solutions that will ultimately build a stronger community.”

According to the report from United Way of Pennsylvania and research partner United For ALICE, there are more than 658,000 Pennsylvania households living in poverty as well as another nearly 1.5 million working families defined as? ALICE ?(Asset Limited, Income Constrained, Employed), earning above the Federal Poverty Level but less than what’s needed to survive in the modern economy.

Childcare providers, home health aides and cashiers are defined in the report as ALICE workers working individuals who have little or no savings and are often one economic emergency removed from poverty or financial instability.

Per the UW report, the basic costs to live and work in the Greater Lehigh Valley excluding tax credits for a family of four with an infant and a preschooler increased an average of 27% in Carbon, Lehigh, and Northampton counties from 2021 to 2022. The annual survival budget in the Lehigh Valley rose from $76,272 in 2021 to $98,664 in 2022. The loss in 2022 of up to $15,000 in federal child tax credits and stimulus payments that families had access to in 2021 further complicated matters.

“While local United Ways in Pennsylvania build programs and partnerships that help support the economic mobility of ALICE households, our network also advocates for statewide policy solutions like the Working Families Tax Credit, making childcare more accessible by funding a recruitment and retention initiative for the childcare workforce, and support for PA 211 which helps Pennsylvanians learn about community resources,” said Kristen Rotz, president, United Way of Pennsylvania.

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