Record investment of almost £8.5 billion was committed to support low income households between 2018-22, with almost £3.3 billion benefitting children.
The fourth annual progress report on child poverty, published yesterday, shows that all of the actions committed as part of the first Tackling Child Poverty Delivery Plan, Every Child, Every Chance, have been delivered.
The plan focused on three drivers of child poverty reduction – work and earnings, social security and household costs – and on the six priority family types at greatest risk of poverty, including lone parent families and families with a disabled adult or child.
Key achievements over the life of the plan (2018-22) include:
introduction of the Scottish Child Payment, with more than 1.2 million payments between February 2021 and March 2022 – a £58.6 million investment
increase in the number of real Living Wage accredited employers, with the proportion of people earning the real Living Wage or more rising from 80.6% in 2018 to 85.6% in 2021
increase in the funded hours for Early Learning and Childcare from 600 hours in 2018 to 1,140 hours in August 2021, saving families up to £4,900 per eligible child in 2021
delivery of 35,095 affordable homes, 25,562 of which were for social rent – supporting an estimated 11,585 households with children into affordable housing between 2018-22
extension of concessionary travel to all under 22s, with approximately 930,000 young people eligible for support – saving families up to £3,000 by the time their child turns 18
expansion of universal free school meals to children in primaries 4 and 5, saving families around £400 per child and increasing School Clothing Grant to at least £120 for eligible primary school children and £150 for those in secondary school in 2021
Social Justice Secretary Shona Robison said: “Over the last four years, we have strengthened the foundations of support for children and families and used our powers to support those most in need, particularly with the introduction of our new social security system.
“We are now supporting low income households, carers and helping disabled people lead independent lives through 12 benefits, seven of which are entirely new and not available anywhere else in the UK.
“We have made progress despite significant challenges. The pandemic and the continued impact of UK Government welfare reforms has disproportionately impacted the most disadvantaged and been severe. And, of course, households are all now facing the current cost of living crisis.
“That is why we remain determined to continue with our national mission to tackle child poverty. Our second Tackling Child Poverty Delivery Plan for 2022-26, Best Start, Bright Futures, is ambitious and has a range of actions to support families both immediately and in the long term to deliver change.
“We will also continue to call on the UK Government to reverse their welfare reforms, including the two-child limit. Analysis shows that reversing them would put an estimated £780 million in the pockets of Scottish households in 2023-24 and help to lift 70,000 people out of poverty, including 30,000 children.”
Scotland is a country where compassion is strong, but where child poverty is an ongoing injustice that we have to end together.
Best Start, Bright Future, the Scottish Government’s Tackling Child Poverty Delivery Plan, was published at the end of March. It’s designed to help create the change we need to drive down child poverty and reach Scotland’s interim child poverty targets in 2024.
There are a lot of commitments in the plan, and we are hosting a special morning webinar to explore how we can make sure they are implemented, and how they can best deliver practical change in our communities.
The plan includes pledges to: increase the level of the Scottish Child Payment; create a new employability offer to help parents get into work, and; mitigation of the benefit cap.
There is lot more besides, and Best Start, Bright Futures will touch on all areas of anti-poverty activity in Scotland. It is crucial for groups and organisations across the country to understand what it all means for their work.
Shelter Scotland has said Councillors must stick to their promises and make social housebuilding the top priority for the next administration in Edinburgh as talks to decide who will head up the council continue.
Ahead of the election the housing charity’s petition demanding action on social homes attracted more than 3,300 signatures in Edinburgh, and in excess of 12,000 nationally.
Before voters went to the polls, councillors from the SNP and Labour, the two largest parties on the City of Edinburgh Council signed the Shelter Scotland social housing pledge to make social housing delivery a top priority for their term in office.
Shelter Scotland’s analysis of the council’s figures shows the city needs at least 7,000 social homes over the next five years.
Director of Shelter Scotland, Alison Watson, said: “Social housing ends homelessness. It protects against worsening child poverty and helps our communities thrive. It is easily one of the best things the new council can do to improve our city. Despite that, none of Edinburgh’s previous administrations have delivered the homes the council’s own figures say the city needs.
“Before this election, the parties now negotiating a new power sharing agreement promised the 3,360 citizens in Edinburgh who signed the social housing petition that they would make building at least 7,000 social homes a top priority. Now they need to deliver.”
Alison added: “Communities across Edinburgh are suffering as a direct result of the housing emergency. They will not easily forgive or forget if councillors do not deliver what they’ve promised.
This is one thing the parties can agree on and something the people of Edinburgh will expect to see on the first pages of their new plan for the city.”
Plans to remove all income thresholds from Best Start Foods by 2023-24 have been announced as part of the second Tackling Child Poverty Delivery Plan, ‘Best Start, Bright Futures’.
This will increase eligibility to all people in receipt of a qualifying benefit. As a result, an additional 30,000 people are expected to benefit from Best Start Foods.
Best Start Foods is delivered via a prepaid card and provides £18 every four weeks throughout pregnancy, £36 every four weeks from birth until a child turns one, then £18 every four weeks from one until a child turns three.
The implementation of this change will be part of the successful delivery in the coming years of our significant, wider benefits programme.
Minister for Social Security Ben Macpherson said: “Tackling child poverty is a national mission for us. We continue to take the necessary steps to reach the ambitious targets set out in our Tackling Child Poverty Delivery Plan. Social security is one of the main pillars of this plan and will help us to deliver support directly into the pockets of those families who need it the most.
“The cost of healthy food was already a pressure for parents and carers, and the cost of living increases are only making this more challenging. We will remove the income thresholds for Best Start Foods so that around 30,000 additional people who receive tax credits or certain benefits will be able to receive Best Start Foods by the end of financial year 2023-24.”
Sharon Hill, the Development Manager of Mayfield and Easthouses Development Trust, which runs a community pantry in Midlothian serving local people, said: “We have been operating the pantry for less than a year but it is clear that people from all walks of life and backgrounds are looking for ways to cut costs when it comes to doing their essential food shopping.
“We encourage people to ensure that they get all the benefits that are available to them and we welcome any move to open that support up to include more people.
“Like many people involved in community pantries and food banks our aim is to help people get to a place where they don’t require these services any more.”
Background
The Scottish Government replaced the UK Healthy Start Voucher scheme in Scotland with Best Start Foods on 12 August 2019
Best Start Foods aims to help tackle the impacts of child poverty by supporting low income families to buy healthy foods
Best Start Foods is delivered via a prepaid card and provides £18 every four weeks throughout pregnancy, £36 every four weeks from birth until a child turns one, then £18 every four weeks until a child turns three
The card can be used to buy healthy food, including eggs, milk, fruit, vegetables and pulses
Applicants under 18 will be eligible for Best Start Foods during pregnancy and up until their child turns one, without the need to be in receipt of benefits
Applicants over 18 need to be in receipt of a qualifying benefit. At present, income thresholds also apply for some of these qualifying benefits. These income thresholds will be removed by 2023-24
Eligible families, and carers can find out more and apply at mygov.scot/beststart or by calling Social Security Scotland free on 0800 182 2222
Best Start Foods is part of a package of Five Family Payments. By the end of 2022, the Scottish Government’s package of Five Family Payments for low income families will be worth up to a maximum of over £10,000 by the time a family’s first child turns 6, and £9,700 for second and subsequent children
104,000 children have payment increased to £20 per week
The flagship family payment – Scottish Child Payment – has now doubled to £20 per week per child. 104,000 children are already benefiting from this increase.
The payment, which is unique to Scotland, was designed to tackle child poverty head on. It is one of five family benefits which provides financial support to low income families with children aged under 6.
The benefit will be extended at the end of the year to all eligible children under the age of 16 – and at that point also increase further from £20 to £25.
Once extended, it is expected over 400,000 children could be eligible. The newly doubled Scottish Child Payment, together with the three Best Start Grant payments and Best Start Foods, will provide families with more than £10,000 by the time their first child turns 6 and £9,700 for subsequent children.
This compares to less than £1,800 for an eligible family’s first child in England and Wales, and less than £1,300 for subsequent children.
Visiting Glasgow based family charity Govan Help, First Minister Nicola Sturgeon said:“We are using our social security powers to take immediate steps to put cash in the pockets of families by doubling the Scottish Child Payment to £20 per week per child – support not replicated anywhere else in the UK.
“This is a key part of our national mission to tackle child poverty. We will further increase this payment to £25 by the end of 2022 – five times the amount campaigners originally asked. This will gives families additional financial support of £1,300 for each eligible child every year. We will back this with investment of around £671 million over the next two years – just part of our package of support for families.
“Our Tackling Child Poverty Delivery Plan will also build on our investment in employment support for parents, through new skills and training opportunities and key worker support to help reduce household costs and drive longer term change.
“We are determined to give children the best start and a bright future by putting more money into the pockets of those who need it most. Increasing the Scottish Child Payment will make a real difference to families and help to build a more equal and fairer Scotland for everyone.”
Viv Sawers, Chief Officer at Govan Help, said: “This is a fantastic measure from Scottish Government in tackling Child Poverty in Scotland. The roll out and the uplift in Scottish Child Payment will have an incredible impact on the families across Scotland who need it most and we are delighted to see money going directly to families who we know are struggling to meet their basic cost of living.
“Govan has higher than average rates of Child Poverty so this will have a hugely positive impact on the quality of life for families in this local community. We see families struggling daily, they have told us what a difference this has made already with the cost of living increases, we look forward to supporting more families to access this as it rolls out to children up to age 16 later this year.
“We know parenting is a really hard job, without financial pressures, this funding will go a long way to removing stresses that can impact on healthy family functioning and wellbeing.”
Scottish Child Payment increased to £20 from Friday 1 April
Parents and carers do not need to reapply and will see their payments increase automatically
Social Security Scotland administers five benefits for families on tax credits and certain benefits. These include Best Start Grant Pregnancy and Baby Payment, Early Learning Payment, School Age Payment, Best Start Foods and Scottish Child Payment. Parents and carers can find out more and apply at mygov.scot or by calling 0800 182 2222
Ahead of extending the Scottish Child Payment to under 16s, the Scottish Government is set to invest £225 million this year (2022-23) in our Scottish Child Payment.
The Scottish Government is also putting around £150 million in the pockets of families through Bridging Payments to families of 145k children in receipt of free school meals across 2021 and 2022
The extension of Scottish Child Payment is subject to data on qualifying benefits being received from the Department of Work and Pensions
The Tackling Child Poverty Delivery Plan 2022-26 – Best Start, Bright Futures outlines actions to be taken to provide immediate support to children and families and to break the cycle of child poverty
Almost £6 billion has been invested to support low income households across Scotland over the last three years.
More than a third of that total, around £2.18 billion, has directly benefitted children as the Scottish Government prepares to publish its Tackling Child Poverty Delivery Plan for 2022-2026.
On Thursday (24 March) Social Justice Secretary Shona Robison will update Parliament on the national mission to break the cycle of poverty for thousands of families.
The Delivery Plan for 2022-26 builds on the work of ‘Every Child, Every Chance’, published in 2018. It introduced a range of new supports through Social Security Scotland, including the Scottish Child Payment and Best Start Grants, and employability services such as Fair Start Scotland.
Ms Robison said: “In the face of UK government austerity, combined with the deeply damaging £20 cut to Universal Credit, our investment over the last four years to support low income families has had a significant impact. But there is still more we must do to deliver the transformational changes we all want to see.
“Our second Tackling Child Poverty Delivery Plan will be a plan for all of Scotland. All parts of society have a role to play in our national mission to end child poverty. This is a collective effort across society to deliver for our future generations and break the cycle of poverty once and for all.
“Our ambitious measures are already delivering considerable support to children and families compared with other parts of the UK – for example, through free childcare and employment support, maximising incomes and affordable housing and, of course, social security.
“We remain the only part of the UK to have five family benefits, including the Scottish Child Payment, which was designed to tackle child poverty head on. Combined with our three Best Start Grants and Best Start Foods, low income families receive up to £8,400 of financial support by the time their first child turns six.
“Our budgets may be fixed, powers limited, and the scale of the challenge as we emerge from the pandemic has increased. However, we are determined to do everything within our powers to give the children of Scotland the opportunities they deserve to succeed.”
FRASER of ALLENDAR INSTITUTE: – taking stock ahead of the second Tackling Child Poverty Delivery Plan
This month is a big month for tackling poverty in Scotland. It sees the publication of the Scottish Government’s second Tackling Child Poverty Delivery plan. March usually, however, also sees the publication of the official Poverty and Inequality statistics – the primary measures of success of action to reduce poverty. They should have given us the main poverty statistics for the first year of the covid pandemic, i.e. 2020/21.
That Scottish Government has warned, however, that the estimates will not be robust enough to be published as official statistics, due to issues with data collection during the pandemic, which means that they are unlikely to be able to tell us whether relative child poverty rose or fell in 2020/21.
Persistent poverty, which measures whether children have been in relative poverty in three out of the last four years are in persistent poverty uses a longitudinal survey (Understanding Society) which has been less affected by pandemic restrictions and will be released as normal on the 31st March.
However, measures of relative and absolute child poverty, and measures of material deprivation, will effectively be void for 2020/21.
This gap in data is clearly problematic, particularly for those trying to understand the impact of the pandemic on people’s financial situations.
Looking over the long term however, 2020/21 would have no doubt been an outlier due to level of disruption and the impact of things like the furlough scheme and the temporary uplift to Universal Credit.
An important question (which future data will answer) is the extent the pandemic has permanently impacted financially on households, while for some the flux of 2020/21 will have been short-lived, for many it has added the challenges they already face and could have longer-term impacts.
It will be a number of years until we fully understand the long term scarring. In the meantime, as we discussed this time last year as we awaited 2019/20 data on incomes and poverty, pre-pandemic data is as good a benchmark as any to plan for future policy delivery as long as we bear in mind that there is more uncertainty than ever over these figures at the moment.
The second tackling child poverty delivery plan
Future policy delivery is exactly what the Scottish Government will be planning at the moment as they get ready to publish their second tackling child poverty delivery plan and a key part of this will be estimating the impact of measures in the first delivery plan, as well as the impact of announcements at UK Government level[i].
In the three years to 2019/20, relative child poverty was 24%. The continuing impact of the two child limit and the benefit cap are expected to exert upwards pressure on poverty, in the region of 1 to 2 percentage points by 2023/24.
However, there have been two major policy changes which should more than offset this upwards pressure. In the last year, we have seen the Scottish Government announce the doubling of the Scottish Child Payment to £20 a week and some significant changes made by the UK Government to Universal Credit to the work allowance and the rate at which the benefit is tapered away for those in work. Holding all else equal, these will have increased incomes for many low-income families with children, and therefore decreased poverty.
Our best estimate at the moment suggests that the Scottish Child Payment (£20 paid to all children under 16) will shift poverty downwards by 2 to 3 percentage points by 2023/24, with an additional downwards shift of 1 to 2 percentage points due to the changes to Universal Credit.
This implies that policy changes have put child poverty in Scotland on a downwards trajectory. However, even taking these into account, based on policies announced to date our modelling suggests that there is still likely to be a 3 – 4 percentage point gap between expected poverty in 2023/24 and the interim target of 18%.
There are other policy changes that may reinforce this further, for example, employability policies such as Fair Start Scotland and the rollout of 30 hours of free childcare to all 3- and 4-year olds that took place in August 2021 could help boost incomes by 2023/24 but even taking these into account, we are still likely to be above the target level unless new policies are announced.
After the tackling child poverty delivery plan has been announced we will be able to reassess these estimates.
Beyond relative poverty
Inflationary pressures are unlikely to impact the relative poverty measure too much, as long as the impact on incomes is reasonably spread through the income distribution, which seems likely given that neither social security levels nor wages look likely to keep up with inflation. That being said, the huge jump in energy prices will clearly impact on the spending power of low-income households in particular. It is worth remembering, though, that energy costs are not included in the relative poverty measure, even though they are a significant area of expenditure.
Relative child poverty is often referred to as the headline measure of child poverty, but it is only one of the measures specified in the Child Poverty (Scotland) Act 2017. The other measures, by design, provide greater insight into the impact of increases in the cost of basic goods and services.
Absolute poverty measures whether living standards for those in poverty are increasing over time. Large increases in the cost of living, both now and those expected in the future, will mean that meeting this target will be increasingly difficult. Meaning that while people’s incomes may improve relative to others, they will not see the same improvement in their standard of living. It will also impact on the material deprivation measure which measures whether or not people can afford basic goods and services.
Persistent poverty is based on a relative measure and therefore is also not likely to be impacted severely by inflationary pressures
Uncertainty still reigns, but meeting the 2030/31 targets will require new policy
Tackling child poverty is a long term aim of the Scottish Government, and by the time the final targets need to be met in 2030/31, the pandemic should be long behind us.
Work published by FAI, MMU and the Poverty Alliance earlier this year found that structural policies such as childcare, social security and employability programmes could make substantial inroads in meeting the 2030/31 targets, with potential for some significant economic benefits as a result. However, the cost implications of these kinds of policies are large.
To get to the 2030/31 targets, waiting until the next delivery plan in 2026 to do all the heavy lifting may be too late for the required development and implementation (the Scottish Child Payment was first announced under the guises of an income supplement 4 years ago).
Much, therefore, rests on the soon to be published Tackling Child Poverty Delivery Plan. While the 2030/31 targets are some time away, the required action to meet the targets is significant and will take time. We will be working with the Joseph Rowntree Foundation to assess the potential of the plan to meet these ambitions once it has been published.
The Scottish Child Payment will be doubled to £20 per week per child from April 2022, the First Minister has announced. The decision has been welcomed by poverty camapigners.
First Minister Nicola Sturgeon confirmed that more than 105,000 children will immediately benefit from the increased payment, which supports low income families with children aged under 6.
First introduced in February 2021 as a £10 per week payment designed to tackle child poverty, it provides regular, additional financial support for eligible families.
The benefit, which is unique in the UK, will be fully rolled out to children under the age of 16 by the end of 2022, subject to data on qualifying benefits being received from the Department of Work and Pensions. It is expected over 400,000 children could be eligible for the doubled payment from that point.
From 2023/24 it will represent an annual investment in tackling child poverty of around £360 million a year. The increase to £20 per week further underlines the Scottish Government’s national mission to tackle child poverty.
The First Minister said: “The Scottish Government is determined to lift children out of poverty.
“Of the £2 billion a year that the Scottish Government invests to support people on low incomes, over £670 million is already targeted at children. Through the range of new payments delivered by Social Security Scotland, low income families receive, in the early years of each child’s life, £5,000 of additional financial support.
“At the heart of this is the Scottish Child Payment – the only payment of its kind anywhere in the UK, designed solely to lift children out of poverty and give them better lives. The £10 per week payment for eligible children under age 6 will be extended to all eligible children under 16 at the end of 2022; and we committed to doubling the payment to £20 per child per week within this Parliamentary term.
“I am proud that our budget will confirm that we will double the Scottish Child Payment from the start of the new financial year. This increase to £20 per child per week will reach over 105,000 children under age 6 in just four months’ time. When we extend the Scottish Child Payment to all under 16s at the end of next year, over 400,000 children and their families will be eligible.
“This is the boldest and most ambitious anti-poverty measure anywhere in the UK. Delivering it isn’t easy. It will involve hard choices elsewhere in our budget. But it is a choice we are opting to make.
“Eradicating child poverty is essential if we are to build the strongest foundation for Scotland’s future. And that is what we are determined to do.”
Scottish Government Minister and Scottish Green Party Co-Leader Patrick Harvie said: “With rising inflation, energy costs and the recent UK Government cuts to Universal Credit, further action to tackle child poverty could not have been more urgent.
“I’m therefore delighted that the Scottish Government has been able to double the Scottish Child Payment from April, just months after our policy of free bus travel for children and young people goes live.
“These bold actions deliver on key commitments made in the cooperation deal between the Scottish Government and the Scottish Green Party, and will make a real difference to families across Scotland.”
Scottish Greens MSP Lorna Slater said the decision will be pivotal to tackling child poverty in Lothian.
Ms Slater said: “With a new Covid variant, rising energy costs, inflation and the catastrophic impact of a Tory Brexit being felt, it is more important than ever that we do everything we can to help people that are being hit by Westminster’s cuts and austerity.
“That is why I’m delighted that we will see the Scottish Child Payment doubled in the forthcoming Scottish budget. This will be pivotal to tackling child poverty and will be welcomed by families that are feeling stretched, particularly those that have been hit by Boris Johnson’s punishing Universal Credit cut.
“With Greens in government we are delivering for people and the planet and making a real difference to families in Lothian and beyond.”
“That is why we are introducing free bus travel for everyone under 22 from January, extending free school meals to all primary school pupils and ensuring that government contracts pay the real living wage. We will continue to work towards a fairer, greener Scotland.”
Social Security Scotland delivers a number of benefits for families. These include Best Start Grant Pregnancy and Baby Payment, Early Learning Payment, School Age Payment and Best Start Foods.
The newly doubled Scottish Child Payment, together with the three Best Start Grant payments and Best Start Foods, could give families up to £8,400 by the time their first child turns 6.
Campaigners have welcomed the announcement:
Chris Birt, Associate Director for Scotland at Joseph Rowntree Foundation said:“This is very welcome news that will provide vital support for families with young children following what is expected to be a challenging winter as the cost of living continues to rise. Doubling the payment for older children cannot come soon enough.
“As we noted in our Poverty in Scotland report, this investment alone will not be enough to meet the interim child poverty targets, but it is an important step in the right direction and will make a real difference to families.”
An inquiry has been launched into the health and wellbeing of children and young people by a Scottish Parliament Committee.
The Health, Social Care and Sport Committee is seeking to find out the key issues around health and wellbeing for children and young people in Scotland. They will investigate what the challenges and opportunities are for improving their health and wellbeing, and how addressing poverty can lead to improved health and social care outcomes.
The inquiry will focus on 4 key areas:
• Child poverty (including the Scottish Government’s current child poverty delivery plan), inequality and adverse childhood experiences; • Issues affecting care experienced young people; • Mental health, access to Child and Adult Mental Health Services (CAMHS) and the importance of early intervention; • Health and wellbeing in schools
Speaking as the inquiry launched, Gillian Martin MSP, Convener of the Health, Social Care and Sport Committee, said: “There are a whole host of factors which impact the health and wellbeing of our children and young people, and our Committee will consider these in detail.
“The physical and mental toll of the pandemic on children and young people cannot be overstated and we know that prior to this pandemic there was already a high and increasing demand for youth mental health services in Scotland.
“As we emerge from the pandemic and with the Scottish Government’s current child poverty delivery plan due to run until 2022, our inquiry comes at a pivotal time. We are determined to find out how children and young people can best be supported to live healthy and flourishing lives.”
