Household classification, family diversity and poverty risks in Europe: Addressing a North-Western bias

European statistics and policies commonly rely on household typologies that classify households based on the number of adults and children living together. However, these typologies overlook family relationships and classify any non-standard arrangement into a broad residual category of ‘other’. This approach fails to capture increasing family diversity across Europe and introduces a persistent North-Western bias into data and policymaking. As a result, families that do not fit conventional models may be misclassified or entirely overlooked in poverty assessments and policy targeting. This is problematic since family structures vary substantially across European countries and became more diverse over time. This article introduces the Families in Households Typology (FHT), a classification system that uses relationship identifiers in EU-SILC microdata to reconstruct family structures within households. The FHT reduces the share of individuals placed in the residual ‘other’ category from over 20% to around 5%, particularly improving identification in Southern, Central, and Eastern European countries where multigenerational living arrangements are common. The results also show that nearly half of all single parents in Europe live with another adult and are not captured as single parents under conventional typologies. This has important implications for policy design: many single-parent households may be excluded from targeted support due to misclassification. Reclassifying households using the FHT also reshapes our understanding of living standards. The poverty risk of single parents is often overestimated when the Eurostat household typology is adopted. When single parents co-residing with kin or unrelated adults are correctly identified, their average poverty risk tends to be much lower. These findings highlight the importance of moving away from basic household counts towards relational classifications that more accurately reflect the diversity of family life across Europe, rather than using typologies that reflect the dominant family reality in Northern and Western Europe.