TONIGHT: Our #AScotlandForAllOfUs Scottish Parliament election hustings takes place tonight at 5.30pm.
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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:
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)
Ahead of the Scottish Parliament election, a new campaign has today been launched, calling on Scotland’s political parties to commit to extending free bus travel to everyone receiving Universal Credit (and other low-income benefits) and under 25s.
The Everyone Aboard campaign – coordinated by the Poverty Alliance and supported by a range of children’s charities, anti-poverty groups, trade unions and environmental organisations – is launched at a time of growing hardship across Scotland.
Young people have been particularly hard-hit by job disruption as a result of the pandemic. Research from the Institute for Fiscal Studies found that under 25s, especially women, have been hit harder economically than any other age group. They have a higher chance of furlough, precarious employment, unemployment, and are the most likely to work in low-paid sectors such as hospitality and retail.
But too many people in Scotland, the campaign says, were locked out of accessing vital opportunities because they could not afford the cost of public transport. Between 2014 and 2019 bus fares rose by 18%; while the value of social security payments fell, and wages stagnated.
The campaign is also highlighting how greater use of public transport will be vital if Scotland is to meet its climate change goals. The Scottish Youth Parliament found that young people would be more likely to use the bus if fares were less expensive. Extending free bus travel to all young people under 25 would accelerate the normalisation of bus use in place of cars.
In a letter sent yesterday to Scotland’s party leaders, Peter Kelly, Director of the Poverty Alliance, said:
“As a society, we believe we should look out for each other. But those whose finances have suffered most during the pandemic, people on low incomes and young people under 25, risk being left behind in our economic recovery.
Greater access to free bus transport is not only good for the environment, but will help tackle poverty, reduce geographical inequalities and help increase access to essential services.
The next Scottish Parliament has the chance to build a Scotland for all of us, one where no one is left behind. On the road to recovery, we can make sure everyone has a seat, by providing free bus travel to everyone receiving Universal Credit and other low-income benefits, and to all young people under 25.”
Stemming the rising tide of poverty across Scotland must be the defining issue of the Holyrood election, the Poverty Alliance have said, with calls for all political parties to commit to a range of ambitious and bold action to boost incomes and reduce costs.
The calls were made as the Poverty Alliance launched A Scotland for All of Us, 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. The measures include:
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.”
Anti-poverty campaigners have called for increased action from the Scottish Government to tackle the educational attainment gap, after new analysis (which can be read in full here) found stark gaps in attainment between young people from Scotland’s least and most deprived areas.
The analysis, undertaken by the Poverty Alliance on behalf of The Robertson Trust, examined the evidence on the links between poverty, education and work pathways for young people in Scotland and across the UK.
It found evidence that the poverty-attainment gap – already identified by the Scottish Government as a key priority – shows signs of increasing and risks being further compounded by the impact of the Covid-19 pandemic.
The review reveals that as of 2018-19:
Despite a range of policies, strategies and initiatives having reformed the Scottish educational and employment landscape over the last six years, most notably the expansion of early learning and childcare and the Scottish Attainment Challenge, the review highlighted Covid-19’s disproportionate impact on single parents and low-income households.
Emerging evidence has also shown the negative impacts of the pandemic on the educational outcomes for children and young people from deprived areas due to the digital divide and lack of access to educational related resources.
Income inadequacy prevents children from low-income households being able to fully participate in education and initiatives seeking to reduce the attainment gap should put reducing financial barriers at the centre.
The review also highlights the importance of initiatives like one-to-one tutoring, mentoring and careers education targeted at young people living in more deprived areas; initiatives that, the review concludes, are currently lacking in Scotland.
Poverty Alliance Director, Peter Kelly, commented: “Scotland is a country that believes that every child should have every chance. However this review makes clear that too many of our young people are seeing their life chances restricted by poverty. The educational attainment gap is stark in Scotland, and is an injustice that we cannot allow to continue.
“We know that the pandemic is compounding the gap. But we also know the action that we have to take to loosen the grip of poverty on the lives of families across Scotland, and to ensure that every young person in Scotland has access to the same opportunities.
“That means using every lever at our disposal to boost family incomes, as well as increasing support for interventions like one-to-one tutoring and mentoring for young people from low-income backgrounds.”
Chief Executive of the Robertson Trust, Jim McCormick, added: “At The Robertson Trust, we are keen to understand how best we can maximise the contribution of education and fair work in reducing poverty.
“This report not only highlights the stark differences in educational experiences that children and young people from different backgrounds face across Scotland but also where some of the evidence gaps currently exist when it comes to what works and why.
“Although many of the findings will be familiar to those working tirelessly to narrow the attainment gap, this analysis shines a bright light on the disproportionate impact Covid-19 has had on those already most affected. This is particularly concerning given the clear link between childhood disadvantage, low educational attainment and future poverty.
“We will use the findings to help us shape our own role as an independent funder in this area and it is our hope that the review will stimulate renewed commitment to act across Scotland.”
Chancellor’s statement welcomed by Scottish Secretary but Scottish Government says the package is a huge opportunity missed.
The Chancellor yesterday set out the next steps in the UK Government’s strategy to secure Scotland’s economic recovery from coronavirus – announcing a “Plan for Jobs” to level up, spread opportunity and unite the UK.
Rishi Sunak outlined how he would focus on protecting, supporting and creating jobs as the UK enters the next phase in its recovery following the outbreak.
Delivering his Summer Economic Update, he said: “Our plan has a clear goal: to protect, support and create jobs. It will give businesses the confidence to retain and hire. To create jobs in every part of our country. To give young people a better start. To give people everywhere the opportunity of a fresh start.”
As part of a series of landmark measures the Chancellor announced that the government will:
The Summer Economic Update confirms an additional £800 million of Covid-19 funding for the Scottish Government through the Barnett formula.
The UK Government is now providing £4.6 billion through the Barnett formula to help the Scottish Government support individuals, businesses and public services through Covid-19.
Rishi Sunak said the plan for jobs was the second phase of a three-phase plan to secure the UK’s economic recovery from coronavirus.
The first phase, beginning in March, focused on protection with a £160 billion package of support – one of the largest and most comprehensive economic responses in the world. In Scotland this package has so far protected more than 620,000 jobs, helped thousands of businesses and paid £425 million to 146,000 self-employed people.
The Chancellor outlined that following the second phase focusing on jobs, there would come a third phase focusing on rebuilding, with a Budget and Spending Review in the autumn.
Speaking about the impact for Scotland, Chancellor Rishi Sunak said: “Since this crisis started, our wide-ranging package of support for Scotland has protected more than 620,000 jobs, thousands of businesses and paid £425 million to self-employed people.
“Today I’ve set out our plan to protect, create and support jobs across Scotland – to level up opportunity, safely reopen our economy and strengthen the Union.
“With a massive funding boost for Jobcentre Plus, doubling the number of work coaches, more people will now benefit from personalised and tailored job support. We’re investing £800m through the Barnett formula, giving Scotland the funds to create green news jobs. And we’re protecting the thousands of existing jobs in the hospitality sector with a cut to VAT and the Eat Out to Help Out scheme.”
Scottish Secretary Alister Jack said: “The measures announced by the Chancellor to support the country’s post-coronavirus economic recovery delivers for all parts of the UK.
“The UK Government’s ambitious plan for jobs, with its strong emphasis on our young people, is great news for young Scots.
“The VAT cut for tourism and hospitality will be a huge boost for Scotland. It is now absolutely essential that Scotland’s world-class tourism and hospitality industry can properly open for business.
“The stamp duty cut gives a helping hand to the housing market and building trades in England. I urge the devolved administration to use their powers to do the same in Scotland.
“And, thanks to UK Government spending decisions in the rest of the UK, Holyrood will get a £800 million cash boost, bringing their total additional coronavirus support funding to £4.6 billion.”
“The Chancellor has set out a fantastic package of support. The devolved administration now need to play its part and show they are serious about Scotland’s economic recovery.”
Responding the UK Chancellor’s Summer Statement, Scottish Finance Secretary Kate Forbes said: “We called for an £80bn stimulus package to build a strong, green and inclusive economic recovery and while there are elements in this announcement to be welcomed, in particular the measures on VAT for tourism and hospitality, overall this
“It falls well short of delivering what is needed to boost the economy and protect jobs.
“There is no new capital spend, no extension to the furlough scheme for hard-hit sectors and no further support for households in financial difficulty. A half price meal out does not help those struggling to put food on the table.
“Many of the initiatives are short-lived and do not provide long term certainty for business or households. Instead they will simply push the problems back to the end of the year when we will also have to deal with the end of the transition period with the EU.
“Despite announcing new funding measures worth up to £30bn today, most of it bypasses devolution and does not provide the Scottish Government with the funding we need to enable us to tailor an economic response that meets Scotland’s needs.
“Like all governments, we are facing huge spending pressures but we do not have the tools that others have to meet them. Along with the Governments of Wales and Northern Ireland, we set out a reasonable, proportionate set of new financial powers that would enable the Scottish Government to respond effectively.
“Regrettably, the UK Government has turned a deaf ear to those needs.”
Andrew McRae, Federation of Small Business’s (FSBx) Scotland policy chair said: “Good news has been in short supply for nearly four months. We needed action to help protect jobs and stimulate local economies across Scotland and that is exactly what the Chancellor has set out to do.
“However, it should be noted that there are many small businesses that were not supported by the Chancellor’s package – with company directors once again overlooked. Given these businesses have had little to no support in over 100 days, FSB is hoping that support can be provided in the near future.”
On the “kickstart” jobs scheme, Andrew said: “The jobs scheme will hopefully prevent a lost generation of young people, but for it to work in local economies, it must focus on the small employers who employ around one million people in Scotland. We can’t have a situation where local businesses are behind a queue of big corporates because of a target-driven approach.”
On the temporary VAT cut for hospitality and tourism sectors, he added: “Reducing VAT in sectors hit especially hard by the pandemic is an astute move. It will make everyday activities like grabbing a coffee and cake more affordable for budget conscious consumers – while making the country a more attractive destination for tourists home and abroad.”
On the discount to encourage people to eat out, Andrew said: “Scotland is fortunate to have an array of fantastic food offerings in restaurants, cafes and pubs across the country. We need to encourage more people to get back out into the community and spending money, so any moves to do this are welcome.”
The Poverty Alliance has also responded to the Chancellor’s Summer Statement. Peter Kelly, Director of the Poverty Alliance, said:“Young workers have been hard hit by Covid-19 job disruption, so the Chancellor’s announcement of a kickstart jobs scheme is welcome.
“But as the pandemic has highlighted, for too long people have been locked into poverty by low pay and insecure work. So these jobs should pay at least the real Living Wage and should have been accompanied by measures to tackle the precarious work that too many young people have to rely on.
“Part-time jobs that pay only the minimum wage cannot be a long-term solution to the problems in our labour market.
“Our recovery should be based on principles of fair work; that means redesigning jobs not reinforcing current problems.
“With the confirmation that the Job Retention Scheme is to end in October, the statement was an opportunity to fix our social security system before an expected surge in applications in autumn.
“Increasing the numbers of Work Coaches is welcome, but if we want our economic recovery to be a recovery for all, we need a social security system that loosens – not tightens – the grip of poverty on people’s lives. That means ending the benefit cap, making advance Universal Credit payments non-repayable, and ensuring that benefits actually meet people’s needs. “There is still time to make these changes before October and we urge the government to make them.
“The announcement of vouchers to support the hospitality sector falls short of expectations. At a time when more people than ever before are relying on emergency help from food banks, it is action to put cash in people’s pockets that is required, not the offer of a £10 discount on eating out.“
Statutory Sick Pay will be made available from day one when self-isolating, instead of day four, Prime Minister Boris Johnson announced yesterday – but poverty campaigners say this won’t be enough to protect workers.
The move will be included in emergency legislation to deal with coronavirus.
Updating Parliament on the Government’s response, Prime Minister Boris Johnson told MPs: “I can today announce that the Health Secretary will bring forward, as part of our emergency legislation measures, to allow the payment of Statutory Sick Pay from the very first day you are sick instead of four days under the current rules.
“No one should be penalised for doing the right thing.”
Explaining the rationale for the measure, the Prime Minister had earlier said: “We are not at the point yet where we are asking large numbers of people to self-isolate, but that may of course come if large numbers have the symptoms.
“If they stay at home, they are helping to protect all of us by preventing the spread of the virus.”
The change will be a temporary measure to respond to the outbreak and will lapse when it is no longer required.
Statutory Sick Pay is paid by employers, who will know the reason their staff are giving for not being at work and already have some discretion to accept different forms of evidence as proof of sickness.
There is a range of support in place for those who do not receive Statutory Sick Pay, including Universal Credit and contributory Employment and Support Allowance. The move will be included in emergency legislation to deal with coronavirus.
The UK Government has announced it will extend statutory sick pay to start on the first day of being off to enable people to self-isolate in response to the Corona virus. But this won’t be enough to protect workers, says the Poverty Alliance.
Peter Kelly, Director of Poverty Alliance said: ““While we welcome the much needed extension of statutory sick pay, this will not be enough to protect workers who may need to self-isolate in response to the virus.
“Statutory sick pay should be significantly increased from its current level of £94.25 to reflect the cost of living, and the qualifying wage of £118 should be removed.
“If the Corona virus continues to spread at its current rate there is a high risk that many more people will be swept into already staggering levels of poverty in this country.”
“The challenges of responding to the virus highlight existing failings in both the labour market and social security system. Workers on zero hours contracts will have no access to sick leave and have been recommended to apply for Universal Credit. But we know that the five week wait for first payments of the benefit is already driving destitution.
“Immediate safeguards should be introduced for workers who are deemed as self-employed or are on zero or short hours contracts and the scandalous and unnecessary wait for Universal Credit should be brought to an end.”
The TUC has been campaigning for everyone to get sick pay from day one, no matter what they earn.
They are calling on the government to introduce emergency legislation that:
Sign the petition calling for sick pay for every worker from day one.
With all the votes now counted, the Conservatives now have a clear majority at Westminster. They have 365 seats, while the Labour Party had a disastrous night – their worst since the 1930s.
But while England voted to ‘get Brexit done’, it was a markedly different story north of the border where the SNP cemented their position as the dominant force in Scottish politics, winning 48 of the 59 seats- a rise of 13. Continue reading Comments on the general election result
Poverty campaigners have published their demands for the next UK Government, with calls for a range of policy commitments to help stem the rising tide of poverty.
In Righting the wrongs: A manifesto to tackle poverty, the Poverty Alliance urge the next UK Government to put solving poverty at the heart of all that it does, including by creating a more compassionate social security system, building a labour market that works for everyone, and protecting people on low incomes from the effects of Brexit. Continue reading Righting the Wrongs: Poverty Alliance launches general election manifesto
Thorntons, one of Scotland’s largest full-service legal and estate agency firms, has become an accredited Living Wage Employer through Living Wage Scotland. Continue reading Thorntons celebrates Living Wage accreditation
