One Scot in eleven now living in poverty

Having a job is no guarantee of escape from poverty –  half of children living in extreme poverty were in households where at least one adult was in full time employment

More than half a million people in Scotland are living in severe or extreme poverty , according to the latest data published today. Scotland’s poorest people lived on less than half the average income in 2012/13, according to a new government report.

Around 510,000 people, including 100,000 children and 80,000 pensioners, are living in severe poverty – households with an income under £11,500. A further 230,000 were classed as living in extreme poverty, which means the household had an income of lower than £9200.

A household is defined as living in relative poverty with an income below 60 per cent of the UK median income. Severe poverty is defined as living with an income lower than £11,500, or 50 per cent of UK median income, while extreme poverty is defined as lower than £9,200, 40 per cent of UK median income.

The scale of the country’s poverty levels has been exposed in the Scottish Government’s Severe Poverty in Scotland report, which shows working age adults and children are more likely to live in severe poverty than pensioners, particularly after housing costs.

Commenting on Severe Poverty in Scotland, Social Justice Secretary Alex Neil said: “It’s a disgrace that so many people live in such severe or extreme poverty, but it’s an unfortunate and inevitable result of the UK Government’s failed austerity agenda and welfare cuts that are slashing incomes for some of our poorest households.

“With employment increasing and unemployment down, Scotland is outperforming the rest of the UK, yet the statistics show that a job is no longer any guarantee against severe or extreme poverty.

“That’s why we opposed cutting in-work tax credits and why the Scottish Government and its agencies are paying the living wage, encouraging other employers to follow suit.

“We have put tackling poverty and inequality at the heart of Government, through policies like the council tax freeze, free prescriptions, expanding childcare provision, while we are mitigating the worst of the welfare cuts, by replacing income lost through the bedroom tax or council tax benefits cuts.

“That action is making a real difference and we will continue to make the argument for a fairer welfare system.”

The statistics also make clear that being in a job is not a guarantee against poverty. Being in employment does significantly reduce the risk of poverty, but 44% of working age adults in extreme poverty lived in households where at least one adult was in employment, as did 60% of children – half of children living in extreme poverty were in households where at least one adult was in full time employment.

In 2012/13, around 10% of working age adults and 10% of children were living in severe poverty, as were 8% of pensioners.

After housing costs, 16% of working age adults, 15% of children and 6% of pensioners in Scotland are living in severe poverty.

Over the last decade, while the rate of relative poverty has fallen, a greater proportion of households in poverty were in severe or extreme low income in 2012/13.

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