Tag: child poverty

Is child poverty heading in the right direction?

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.

Scottish Child Payment to be doubled, First Minister confirms

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.”

Holyrood Committee launches inquiry into health and wellbeing of children and young people

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.”

You can let the Committee know your views here: 

Inquiry into the Health And Wellbeing of Children And Young People – Scottish Parliament – Citizen Space

The call for views will close on 7 December 2021.

First Ministers urge PM Boris Johnson: Do the right thing

First Minister Nicola Sturgeon has joined with the First Minister of Wales and the First Minister and deputy First Minister of Northern Ireland to demand Prime Minister Boris Johnson “do the right thing” by reversing the decision to withdraw the £20-a-week uplift to Universal Credit.

In a rare joint intervention, the leaders of the devolved nations have warned in a letter that the UK Government “is withdrawing this lifeline just as the country is facing a significant cost-of-living crisis.”

They have urged the Prime Minister to “consider the moral, social and economic harms” of the of this cut, and “do the right thing” and reverse his government’s decision to withdraw this funding which will harm around 6 million people across the UK.

The First Minister, along with Welsh First Minister Mark Drakeford and Northern Ireland First Minister and deputy First Minister Paul Givan and Michelle O’Neill say the move, which comes into effect this Wednesday, 6 October, is short sighted at a time of increases in the cost of food and fuel, rising inflation, the end of the furlough scheme, and imminent rise in National Insurance contributions.

First Minister Nicola Sturgeon said: “I do not think there has been anything quite so morally indefensible in UK policy in recent times as the proposed cut to Universal Credit.

“At a time when we are facing the impact of the pandemic, Brexit and soaring costs, removing £20 per week from the lowest-income households simply cannot be defended in any way, shape or form.

“The planned cut represents the biggest overnight reduction to the basic rate of social security in more than 70 years and would sever a crucial lifeline for countless households across the UK at a time when budgets are already facing an unprecedented squeeze.

“It is an immoral, ill-thought out and ultimately counterproductive policy which simply must be stopped.  

“Those on low incomes are going to find it difficult to feed their children, heat their homes, and pay their rent if the cut goes ahead. We have therefore united as the leaders of Scotland, Wales and Northern Ireland to say to the Prime Minister: ‘Do not do this.’”

The full text of the letter is included below:

Dear Prime Minister

We are writing to call on you, with the utmost urgency, to reverse your Government’s short-sighted decision to withdraw the £20-per-week uplift to Universal Credit.

Your Government is withdrawing this lifeline just as the country is facing a significant cost-of-living crisis. This winter millions of people are facing an untenable combination of increases to the cost of food and energy, rising inflation, the end of the furlough scheme, and an imminent hike to National Insurance contributions.

There is no rationale for cutting such crucial support at a point when people across the UK are facing an unprecedented squeeze on their household budgets.

Within the last month, an overwhelming majority of elected members in Holyrood, the Senedd, Stormont and Westminster have voiced their opposition to this cut to Universal Credit, as have the four social security committees of each parliament. The four Children’s Commissioners of each nation, numerous charities and faith groups have also expressed their grave concerns as have millions of people who face additional and unnecessary hardship because of this cut to Universal Credit against the backdrop of a winter of hardship.

We note your Government’s announcement of a Household Support Fund – an acknowledgment that too many people will be unable to make ends meet this winter. Unfortunately, a £500 million fund handed out on a discretionary basis is wholly inadequate to making up the £6 billion shortfall in social security expenditure that will result from the cut to Universal Credit.

Your Government has repeatedly refused to conduct any impact analysis on the biggest overnight reduction to the basic rate of social security for more than 70 years.

As such, it is important that we draw your attention to the growing body of evidence and analysis about the harm this cut will inflict. Research by the Resolution Foundation and the Trussell Trust has highlighted the significant and devastating impact the cliff-edge withdrawal of the £20-a-week uplift to Universal Credit will have on family incomes, with an associated rise in food insecurity.

The Legatum Institute has produced sobering analysis highlighting that the £20-per-week uplift has kept 840,000 people, including 290,000 children, out of poverty in Q2 of 2021. It makes no sense at all to knowingly pursue a policy that will result in this immense and needless rise in child poverty and we ask you to consider the lasting harm and costs of this cut accordingly.

It is important to note that this will increase poverty and hardship without delivering any tangible social or economic benefits. The UN Special Rapporteur on Extreme Poverty and Human Rights said – when calling upon you to reverse this cut – that for a healthy and well-qualified workforce to emerge, your Government must provide adequate levels of social protection. Years of a freeze on benefits means Universal Credit has not kept pace with rising living costs. Further to this, rising inflation means that a basic rate of Universal Credit after this cut will hold less purchasing power than it did in March 2020.

To support a meaningful recovery from this pandemic we must first ensure the needs of our most vulnerable are met. This cut threatens to undermine the recovery by diminishing the capacity of six million people to make ends meet.

It is not too late for you to reverse the decision to take money out of the pockets of the poorest in society at a time when they are facing a serious cost of living crisis.

We, with the full support of the Northern Ireland Executive and the Scottish and Welsh Governments, urge you to consider the moral, social and economic harms of this cut, and do the right thing and reverse your decision to withdraw this lifeline.

A copy of this letter is being sent to the Secretary of State for Work and Pensions, the Chancellor of the Exchequer and relevant Secretary of States for the devolved nations.

Yours sincerely

Nicola Sturgeon First Minister of Scotland

Mark Drakeford First Minister of Wales

Paul Givan First Minister of Northern Ireland

Michelle O’Neill Deputy First Minister

Council welcomes Scottish Government’s support for capital’s poorest families

City of Edinburgh Council finance leaders have welcomed yesterday’s Scottish Government announcement that around 8,000 Edinburgh children from low-income families will benefit from a £320 uplift before Christmas.

As part of the Scottish Government’s commitment to tackling child poverty, children that are entitled to free school meals will receive payments of £160 per child in October and December.

This follows three payments that were made late in 2020 and early this year to eligible families by the Council, taking the total to £620 received by each child.

In Edinburgh, these were:

a Winter Support Fund payment of £100 per child in December 2020;

a Spring Hardship Payment of £100 per child in March 2021; and

a Summer Family Pandemic Payment of £100 per child in June 2021. This was issued along with the Summer holiday Free School Meals Payment of £92.50 per child.

This will take the total money distributed to children in low-income families by the end of 2021, over these five payments, to around £4.8 million.

In 2022, the Council also will deliver £520 payments per child in 4 instalments on behalf of the Scottish Government.

As detailed by the Scottish Government, this cash is equivalent to the Scottish Child Payment (SCP), a £10-a-week benefit which provides regular, additional financial support for families in receipt of qualifying benefits to assist with the costs of caring for a child aged under six years old.

Finance Convener Councillor Rob Munn said: “Many families are still feeling the effects of the pandemic and it’s more important than ever that we continue to support those most in need, particularly at a time of year when household bills are increasing. So we welcome this additional money from the Scottish Government, that will be administered through the Council, to give some added relief.

“As a Council we are committed to ending poverty and supporting the wellbeing of our residents and through building a better foundation for our young people we hope that we can create a better future for all.”

Finance Vice Convener Councillor Joan Griffiths said: “Direct support must go hand in hand with the ongoing financial support to ensure that no child is left behind as a result of these unprecedented times.

“Our teams from across Children’s Services have worked tirelessly to put in place a series of measures across the city to continue to support and monitor the effects the pandemic is having on our children. Thanks must go to all our hard-working staff and third sector partners who are providing these vital services.”

Bridging payments boost for Scotland’s low-income families

Around 148,000 children set to benefit from £320 uplift before Christmas

Low income families will benefit from a £320 uplift before Christmas as part of the Scottish Government’s commitment to tackling child poverty.

Eligible families with children in school will receive payments of £160 per child in October and December. Two Bridging Payments of £100 have already been made via local councils, taking the total to £520 this year.

The cash is equivalent to the Scottish Child Payment (SCP), a £10-a-week benefit which provides regular, additional financial support for families in receipt of qualifying benefits to assist with the costs of caring for a child aged under six years old.

SCP will be extended to all eligible under-16s by the end of 2022, with quarterly Bridging Payments made in the interim. The Scottish Government also intends to double the SCP to £20 per week as quickly as possible following the expansion.

Social Justice Secretary Shona Robison will highlight the payments today when she opens a parliamentary debate on the commitments in the Programme for Government which aim to create a fairer society.

She said: “We are determined to build a better future for Scotland’s children and we know how important these payments will be to families in need this winter – particularly with rising fuel bills and Christmas just around the corner.

“Together the Scottish Child Payment and Bridging Payments will put an estimated £130 million in the pockets of low income families this year, providing support as we recover from the pandemic.

“Scottish Child Payment is already the most ambitious anti-poverty measure currently being undertaken anywhere in the UK and we have committed to doubling it to £20-a-week per child as soon as possible in this parliamentary term.

“It stands in stark contrast to the indefensible move by the UK Government to withdraw £20-a-week in Universal Credit from those who need it most.”

Councillor Gail Macgregor, COSLA’s Resources spokesperson, said: “Councils are pleased to be able to ensure that eligible low income families have access to an additional £520 this year and next through these Bridging Payments.

“It is important families who have been hardest hit by the pandemic have these vital additional funds as we move forward with the challenging recovery process.

“This demonstrates how local government can reach in and support families in our communities.”

Satwat Rehman, CEO of One Parent Families Scotland, said: “The SCP Bridging Payments have been a welcome support to many single parent families supported by One Parent Families Scotland, many of whom are struggling to make choices between heating their homes and feeding their children and themselves.

“These payments send a message to families that the Scottish Government is aware of their challenges and is actively trying to address them.

“With fuel prices due to rise with by an average 12%, single parent families remain at risk of falling deeper into poverty and debt in Scotland. More than ever, One Parent Families Scotland believes that regular, predictable, adequate income should be at the heart of tackling child poverty and achieving the national mission to end child poverty.”

Work begins on a Minimum Income Guarantee

Scotland is taking its first steps on the road to establishing a Scottish Minimum Income Guarantee (MIG).

Social Justice Secretary Shona Robison will today co-chair the first meeting of a new steering group to drive forward the ambitious new policy with the aim of reducing poverty, inequality and insecurity.

Ms Robison has also launched a consultation to gather views on how establishing a Minimum Income Guarantee – which would provide an assurance that everyone would have enough money to live a dignified, healthy and financially secure life – could be designed and delivered in Scotland.

The announcement meets another commitment for the first 100 days of this government, which was elected on 6 May.

Speaking ahead of the meeting, Ms Robison said: “We are committed to progressing the delivery of a Minimum Income Guarantee, which could be revolutionary in our fight against poverty. It is a clear demonstration of our ambition and aspiration for Scotland.

“The policy is innovative, bold and radical. It reflects our clear desire to do everything with our limited powers to deliver the change needed, using every lever at our disposal.

“Eradicating child poverty and building a fairer, more equal country must be a national mission, not just for the government, but our parliament and broader society.

“We recognise this is a cross-government responsibility and we are focused on working together to push forward poverty reduction in Scotland.

“We must look at ways of maximising household incomes from work and social security, as well as reducing costs on essentials including services such as childcare.

“Introducing a Minimum Income Guarantee will not be easy and it will not happen overnight, but there is a willingness to deliver on our ambition.”

The steering group will be co-chaired by Russell Gunson, Director of the Institute for Public Policy Research in Scotland, which published a report earlier this year on how a future Minimum Income Guarantee could look.

Mr Gunson said: “A Minimum Income Guarantee could transform the lives of people across Scotland, setting an income floor in Scotland beneath which no one would fall.

“To build a fairer and stronger Scotland following Covid-19 we will need to think big ideas in Scotland and think just as big on how to implement them.

“The MIG Steering Group is a great step, bringing cross-party representatives and experts from across Scotland together to shape a Minimum Income Guarantee and make progress on delivering it.

“I’m delighted to be co-chair and look forward to working hard together to see tangible progress towards delivering a Minimum Income Guarantee for Scotland over the coming years.”

Access the consultation dialogue

Ben Macpherson: ‘Delivering on our commitment to ensure every child has the best start in life’

Best Start Foods payments are increasing this month marking the achievement of another commitment for the first 100 days of the Scottish Government.

Social Security Minister (and local MSP for Edinburgh Northern and Leith) Ben Macpherson paid a visit to Fresh Start’s Pantry on Ferry Road Drive at lunchtime to meet staff and customers who are benefitting from the payments.

The payment supports low income families to buy healthy food for children under the age of three, and forms part of the Scottish Government’s national mission of eradicating child poverty.

Best Start Foods is part of a package of five family payments administered by Social Security Scotland. It is made every four weeks on a pre-paid card to buy healthy food including eggs, milk, fruit, vegetables and pulses. The payment is increasing to £18 from £17 during pregnancy and for any children between one and three years old. It’s also increasing to £36 from £34 for children under one.

Between December 2018 when the first payment started and 31 May 2021, £60.8 million has been paid to 179,575 families for Best Start Grant and Best Start Foods -£16.7 million of these payments were for Best Start Foods.

Social Security Minister Ben Macpherson said: “Unwarranted welfare cuts by the UK Government and the impacts of the pandemic are putting even greater pressure on family budgets.

“It’s our priority to do everything within our power to eradicate child poverty across Scotland. We committed to increasing Best Start Foods within the first 100 days of this Government and we have swiftly delivered. 

“We have also delivered on our 100 day commitment to pay £100 as part of Scottish Child Payment Bridging Payments worth £520 in both 2020 and 2021. Families will now have received £200 for each eligible child this year, almost two years ahead of the planned full roll-out of Scottish Child Payment for older children.

“We are set to invest £77 million both this year and next through this measure which is expected to benefit around 145,000 children and young people in receipt of Free School Meals on the basis of low income.

“Families in Scotland now have a unique package of payments that will help them as their child grows and I encourage all families on low incomes to check what they are entitled to. There are many forms of support available to ensure every child in Scotland has the best start in life.”

Further information on all five family payment can be found by visiting:  

mygov.scot/beststart

Child poverty rising in every Scottish local authority, latest figures reveal

Child poverty has risen in every Scottish local authority since 2015, according to new research published today by the End Child Poverty coalition. The new data shows the scale of the challenge faced by UK, Scottish and local government if commitments to end child poverty in Scotland are to be met.

The research by Loughborough University, on behalf of the End Child Poverty coalition, shows that, even before the pandemic*, levels of child poverty in Scotland ranged from nearly one in six children in the Shetland Islands and East Renfrewshire to nearly one in three in Glasgow – once housing costs are taken into account.

Across the UK the North East of England has seen the most dramatic rise in child poverty in the past five years with child poverty rising by over a third – from 26% of all children to 37% – over five years.

Scotland has lower levels of child poverty (24%) than England (30%) or Wales (31%). However, campaigners in Scotland say that there can be no room for complacency if statutory child poverty targets agreed by all the Holyrood parties are to be met.

The Child Poverty (Scotland) Act, passed unanimously by the last parliament, requires the new Scottish government to ensure fewer than 18% of children are living in poverty by 2023/24, on course to less than 10% by 2030. Councils and local health boards are also required to publish annual Local Child Poverty Action Reports setting out action being taken at local level to tackle child poverty. The End Child Poverty campaigners are urging that local powers, including over economic development, housing and welfare, are all used to maximise family incomes and reduce the costs parents face.

Responding to the latest figures Peter Kelly, Director of the Poverty Alliance, said: “In Scotland, we share a responsibility to care for all of our children. These statistics show the need for bold, far-reaching action to loosen the grip of poverty on people’s lives, and ensure each of us has what we need to live a decent and dignified life. 

“Stemming this rising tide of hardship must be a priority for the new Scottish Government, and there are actions that can be taken right now to do just that – starting with doubling the Scottish Child Payment and accelerating its rollout for children over the age of 6. This would mean families who are struggling to stay afloat will receive the support they need to avoid being swept into poverty.”

Speaking on behalf of members of End Child Poverty John Dickie, director of the Child Poverty Action Group in Scotland, added: “Solid foundations have been laid in Scotland for future progress on child poverty, not least the introduction of the Scottish child payment and an increasing focus on action at local level.

“But this new data is a stark reminder that child poverty was still rising in every part of Scotland, even before the pandemic struck. The challenge now is for government at all levels to use every power they have to boost family incomes and reduce the costs that struggling parents face.

“The new Scottish parliament must act on election promises and make tackling child poverty its top priority. The cross party commitment to at least doubling the Scottish child payment needs to be implemented as a matter of utmost urgency in order to help meet the 2023/24 targets.

“But child poverty also needs to be a priority at local level. Local powers, including over economic development, housing and welfare, must be used to maximum effect to ensure all families have a disposable income fit for giving children a decent start in life.”

The End Child Poverty coalition is also calling on the UK government to recognise the scale of the problem and its impact on children’s lives.

They say a credible UK government plan is needed to end child poverty across the UK, including a commitment to increase UK child benefits. Given the extent to which families are already struggling, the £20 per week cut to Universal Credit planned in October should also be revoked they say, with the support also extended to those still receiving financial assistance from the old benefit system, referred to as ‘legacy benefits’, before they are switched to Universal Credit.

“The figures speak for themselves – the situation for children couldn’t be starker. We all want to live in a society where children are supported to be the best they can be, but the reality is very different for too many.

“The UK Government can be in no doubt about the challenge it faces if it is serious about ‘levelling up’ parts of the country hardest hit by poverty. After the year we’ve all had, they owe it to our children to come up with a plan to tackle child poverty that includes a boost to children’s benefits. And they need to scrap plans to cut Universal Credit given parents and children are having a tough enough time as it is.”

Find out more on End Child Poverty’s website

Latest statistics reveal child poverty figures continue to rise

Covering the period just before the current pandemic, the statistics suggest a gradual increase in child poverty levels since the early 2010s.

Two out of the four child poverty measures in the Child Poverty (Scotland) Act show a gradual increase, and two show little change. While the poverty risk is much lower for children where someone in the household is in paid work compared to those in workless households, not all work pays enough to lift the household above the poverty line.

Over two thirds of children in poverty live in a household with someone in paid work.

There is little change in poverty levels for working-age adults and pensioners. Pensioners are less likely to be in poverty compared to working-age adults and children: 14% of pensioners are in relative poverty after housing costs, compared to 19% of working-age adults and 24% of children.

New food security analysis suggests that while most people (84%) live in households with high food security, this falls to only 60% for people in poverty. A household has high food security if people never need to worry about running out of food before they can afford to buy more, and never struggle to afford balanced meals.

Household incomes continue to rise. A typical two-adult household has £27,800 per year after tax and including benefits. Income inequality has fluctuated since the beginning of this data collection in the mid-nineties and continues to do so.

Adults under 25 are more likely to be in poverty than older adults. Non-white ethnic minorities are more likely to be in poverty compared to white ethnic groups. Muslim adults are more likely to be in poverty compared to adults of Christian and other faiths and those with no religion.

Some, but not all, of the higher poverty risk for ethnic minorities and Muslims can be explained by their lower average age. Single adults, especially single parents, and those who are divorced or separated are more likely to be in poverty compared to married, cohabiting and widowed adults.

People living in households with disabled household members are also more likely to be in poverty than those with no disabled household members.

These figures are produced in accordance with professional standards set out in the Code of Practice for Official Statistics.

Stemming the rising tide of poverty across Scotland must be the defining issue of the Holyrood election, the Poverty Alliance said as they launched their manifesto earlier this month. They call for all political parties to commit to a range of ambitious and bold action to boost incomes and reduce costs.

 A Scotland for All of Us, puts forward a package of measures that all of Scotland’s political parties are being urged to back in order to loosen the grip of poverty on the lives of people across Scotland. These include:

  • Committing to a Minimum Income Guarantee, which would ensure that nobody in Scotland had an income below an agreed minimum level;
  • At least doubling the new Scottish Child Payment, and increasing financial support for unpaid carers and disabled people;
  • Extending free bus travel to more young people and to people on low incomes;
  • Ending digital exclusion, by providing low cost or free broadband to low income households;
  • Attaching conditions to all public sector grants, funding and contracts that require payment of the real Living Wage and Fair Work;
  • Adjusting our income tax levels and thresholds to fund greater investment in tackling poverty and exploring the use of wealth taxes;
  • Giving communities a greater say over how money is spent in their local area.

The manifesto is launched at a time of growing hardship across Scotland. Even before the pandemic, over one million people – including almost one in four children – were living in poverty in Scotland. Now with many more people being swept into poverty, Scotland’s child poverty reduction targets remain unlikely to be met without more urgent action in the coming years.

Peter Kelly, Director of the Poverty Alliance, said: “In Scotland we believe in protecting one another from harm, and in the principle that every child should have every chance. Yet Scotland is also a country with unacceptably high levels of poverty and inequality.

“Addressing the rising tide of poverty that is affecting so many communities should be at the heart of every party manifesto, and with the pandemic still having an impact this is not a time for timidity. All parties must pledge to take the bold and ambitious action to boost incomes and reduce costs that we have set out, including committing to a Minimum Income Guarantee and to taking action to create a more just economy and labour market.

The next Scottish Parliament must be remembered as one that reshaped Scotland for the better, that prioritised the needs of those facing poverty and inequality, and that built a Scotland not just for some of us, but for all of us.”

Scottish Government Poverty Statistics background

The two full statistical publications are available here:

Poverty and Income Inequality in Scotland 2017-20 (data.gov.scot)

Persistent Poverty in Scotland 2010-2019 (data.gov.scot)

Poverty and Income Inequality in Scotland contains statistics on poverty, child poverty, poverty risks for various equality characteristics, household income and income inequality for Scotland. This report also includes new statistics on household food security. The data comes from the Department for Work and Pensions’ (DWP) Family Resources Survey, Households Below Average Income dataset. Comparable UK income and poverty figures are published on the same day by DWP.

Figures are presented as three-year averages of each estimate. Three-year estimates best identify trends over time. Single-year estimates are also available in the reference tables. The latest poverty and household income data in this report covers the period from April 2017 to March 2020, just before the first lockdown due to COVID-19.

Persistent Poverty in Scotland presents estimates of the proportion of people in Scotland who live in persistent poverty. The data comes from the Understanding Society Survey, and the latest statistics cover the period from 2015 to 2019.

These poverty statistics are used by the Scottish Government and other organisations to monitor progress in tackling poverty and child poverty, and to analyse what drives poverty and what works for tackling poverty and income inequality.

Key poverty measures:

Relative poverty: A household is in relative poverty if its income is below 60 percent of the middle household income in the UK (the poverty threshold). Relative poverty is a measure of whether the income of the poorest households are keeping pace with middle income households across the UK.

Absolute poverty: A household is in absolute poverty if its income is below the relative poverty threshold from 2010/11. This way, it measures whether the incomes of the poorest households are keeping pace with rising prices.

Combined low income and material deprivation identifies the number of children in families that cannot afford basic essential goods and services because of a low income (below 70 percent of the middle household income).

Persistent poverty identifies the number of people in relative poverty for three or more out of four years. People who live in poverty for several years are affected by it through their lifetime.

Household income is adjusted for household size.

The poverty publications present poverty figures before and after housing costs. Before housing costs figures are a basic measure of household income from earnings and benefits. After housing costs figures subtract spending on rents, mortgage interest payments and other unavoidable housing costs from this basic income. In Scotland, poverty statistics focus mainly on poverty after housing costs. The poverty estimates in this summary refer to relative poverty after housing costs.

Household food security: Household food security questions were newly added to the Family Resources Survey in 2019/20. They ask about whether people were worried about running out of food, had to reduce meal sizes or skip meals. Food security levels can be “high”, “marginal”, “low”, “very low”.

Further information on income and poverty statistics within Scotland is available. Poverty and income inequality statistics – gov.scot (www.gov.scot)

Official statistics are produced by professionally independent statistical staff – more information on the standards of official statistics in Scotland is available. About our statistics – gov.scot (www.gov.scot)