Tag: Poverty

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)

Student writings show what life is really like living in poverty

A new, powerful collection of writing has highlighted the lived experiences of people living with, and tackling, poverty in their communities.

Disturbing yet timely, this collection of writing from students of the Health Issues in the Community course (HIIC) reveals the corrosive effect that poverty and inequality are having on a day-to-day basis in modern Scotland.

As a society that believes in compassion and justice, the writings act as a call to action to address inequalities and the increasing number of people being swept up in the wake of crushing poverty. 

Public health specialists have drawn attention to the serious impact inequalities have – made even worse by the global health crisis brought on by the Covid-19 pandemic. 

Amidst the grim picture that is so minutely described, the writings are also witness to the power of community, of kindness, of the sense of ‘the commonweal’ that is alive in our communities. 

Broadcaster and journalist Lesley Riddoch, who provided the publication’s foreword, said: “From all the grimness of lockdown and the staleness of news comes this wee gem of a collection – words from folk who live at the sharp end of life in Scotland.

“I’ve no doubt that the folk involved in this HIIC course will use the insights and comradeship they’ve gained to start moving mountains – while taking care of one another.”

Health Issues in the Community is an SQA-accredited course for adults and young people that helps students understand what affects their health and the health of their communities.

Running for more than 20 years, HIIC brings a community development approach to tackling health inequalities and reaches more than 300 participants each year.

HIIC is managed by the Community Health Exchange (CHEX) and funded by Public Health Scotland. You can learn more about HIIC here. 

While the HIIC course encourages participants to widen and deepen awareness of health issues in their communities and their involvement, we cannot solve this issue alone. Political action is required by governments to ensure Scotland is no longer defined by poverty and inequality in the 21st century.

These writings provide the voices of lived experience to help make that a reality.

Fiona Garven, Director of the Scottish Community Development Centre, said: “These students’ writings are a stark reminder of the impact of poverty in communities across Scotland – and the power of people coming together to take action on the things that are important to them.

“With a firm foundation in community development practice, HIIC has been tackling health and social issues for more than 20 years. These writings act as further evidence for community-led responses to health inequalities, enabling students to explore and take action to address their own health issues and the health of their communities.”

Bill Gray, Organisational Lead, Public Health Scotland said: “Public Health Scotland is proud to have supported the development of the HIIC course and recognises the need to listen to voices from our communities has never been more important.

“Our Strategic Plan sets out a clear ambition to embed engagement with communities across all of our programmes of work and the experiences of HIIC participants, set out in this powerful new publication is an invaluable resource for anyone working to address health inequalities in Scotland.”

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Education attainment gap remains wide, says Audit Scotland

Progress on closing the poverty-related attainment gap between the most and least deprived school pupils has been limited. And more evidence is needed to understand educational achievement beyond exams.

A joint report by the Auditor General for Scotland and the Accounts Commission found that exam performance and other attainment measures at the national level have improved.

However, progress since 2013-14 has been inconsistent. And there are large variations in local authority performance, with some councils’ performance getting worse on some measures.

The poverty-related attainment gap remains wide and existing inequalities have been exacerbated by the Covid-19 pandemic. The national curriculum recognises that school is about more than exams.

And there has been an increase in the types of pathways, awards and qualifications available to young people. But better data is needed to understand if other important broad outcomes, like wellbeing and self-confidence, are improving.

The Scottish Government, councils, schools and the other bodies responsible for planning and delivering education were working well together before Covid-19.

That allowed them to respond rapidly in exceptionally difficult circumstances. Funding for education has remained largely static – rising from £4.1 billion in 2013/14 to £4.3 billion in 2018/19.

However, most of that real-terms increase was due to the Attainment Scotland Fund, which the Scottish Government set up to close the attainment gap.

Stephen Boyle, Auditor General for Scotland, said: “Significantly reducing the attainment gap is complex. But the pace of improvement has to increase as part of the Scottish Government’s Covid-19 recovery planning.

“That process needs to particularly focus on the pandemic’s impact on the most disadvantaged children and young people.”

Elma Murray, Interim Chair of the Accounts Commission, said: “There is variation in educational performance across Scotland, but this is not solely about exam performance.

“Education also supports and improves the health and wellbeing of children and young people, which has been impacted by the Covid-19 pandemic.

“It is vital that councils, schools and their partners work to reduce the wide variation in outcomes as well as understanding and tackling the short and longer-term impact of Covid-19 on learning and wellbeing.”

EIS General Secretary Larry Flanagan said: “The impact of poverty on children’s life chances remains a matter of huge concern, and much more needs to be done to support young people living in poverty to overcome the barriers that they continue to face.

“Schools do all that they can with insufficient resources to support young people from all backgrounds but cannot, in isolation, overcome such serious societal issues as inequality and poverty.”

“We have long known of the devastating impact that poverty can have on young people, and this has been made worse during the pandemic when young people from less affluent backgrounds have been far more likely to have had their in-school learning disrupted and to face barriers in accessing education outwith the school environment.”

“It is clear that much greater and sustained investment is needed to tackle the impact of poverty on young people’s education, and all of Scotland’s political parties must fully commit to tackling this issue in the context of education recovery during the next Parliament.”

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Closing the Gap progress report

Good progress is being made towards closing the poverty-related attainment gap, a new report has found.

The study examines improvements made through the Scottish Attainment Challenge, and wider education policies, towards closing the attainment gap during this Parliamentary term.

The report highlights a number of key strengths in the education system, including a systemic change in culture and ethos, improved learning and teaching, strengthened collaboration, work with families and communities and a focus on health and wellbeing.

The findings show:

  • the gap between the proportion of primary pupils (P1, P4 and P7 combined) from the most and least deprived areas achieving the expected level in literacy and numeracy has narrowed since 2016-17
  • the gap between the proportion of S3 pupils from the most and least deprived areas who achieved their expected level in numeracy narrowed between 2016-17 and 2018-19
  • the participation gap between those who live in the most deprived and least deprived areas has narrowed year-on-year between 2016-17 and 2019-2020
  • 96% of headteachers felt that they had a good awareness of the range of approaches that can help close the poverty-related attainment gap
  • 90% of headteachers reported they had seen an improvement in closing the gap in their schools in the past five years
  • 88% of headteachers expect to see improvements in closing the gap over the next five years

Deputy First Minister John Swinney said: “Closing the poverty-related attainment gap and giving every young person the chance to fulfil their full potential, regardless of their background, remains our defining mission.

“Our ambition is a long-term one and this report clearly shows significant progress has been made in the last five years. We know that COVID-19 has made our ambition of achieving equity in education harder and I would like to thank all of our teachers and support staff for their extraordinary contribution and resilience shown throughout the pandemic.

“We have put in place a comprehensive range of measures, supported by the £750 million Attainment Scotland Fund, to turn the corner with the attainment gap.

“We have seen improvements across a number of indicators, including a narrowing of the gap between pupils from the most and least deprived areas achieving the expected level in literacy and numeracy.

“Longer term, we have also seen the gap narrow in initial positive destinations and the proportion of pupils achieving one pass or more at SCQF Level 5 and 6.

“The International Council of Education Advisers has acknowledged progress is being made and headteachers are positive about the impact of our measures, have a clear understanding of what is working and are optimistic about improvements being embedded and continuing over the next five years. I am greatly encouraged by this welcome progress and am confident we are on the right path.

“To mitigate against the impact of the pandemic, we are investing a record £200 million in the Attainment Scotland Fund in 2021-22, including an additional £20 million of Pupil Equity Funding.

“We are also investing £50 million in the Challenge Authorities and Schools Programmes next year and will support the Care Experienced Children and Young People Fund with more than £11 million. This is alongside £375 million in education recovery over this year and next to recruit additional teachers and support staff and address digital exclusion.

“I am determined to continue to support our young people through these unprecedented times and the evidence from this report and the Equity Audit will guide our thinking for the next phase of the Scottish Attainment Challenge. Now, more than ever, there is a need to stay the course with our vision of equity and excellence.”

Looking at performance of pupils since 2009-10, the report also finds:

  • the percentage of school leavers in a positive initial destination consistently increased between 2009-10 and 2018-19, for all leavers. The gap in positive initial destinations also decreased in this period
  • the gap between pupils achieving 1 pass or more at SCQF Level 5 has reduced from 33.3 percentage points in 2009-10 to 20.8 percentage points in 2019-20
  • the gap between pupils achieving 1 pass or more at SCQF Level 6 has reduced from 45.6 percentage points in 2009-10 to 36.1 percentage points in 2019-20

Gayle Gorman, Her Majesty’s Chief Inspector of Education and Chief Executive of Education Scotland, said: “We are happy to see the improvements detailed in the report and it is heartening that nine out of ten schools have seen a recent improvement in closing the poverty-related attainment gap.

“We recognise this work is more important than ever and the evidence from this report and the Equity Audit will inform the Scottish Attainment Challenge moving forward.

“Our Attainment Advisors have strong partnerships with every local authority and remain focused on working collaboratively with them, our schools and their community partners to ensure our most disadvantaged learners continue to be supported to achieve their aspirations.

“This is a long-term commitment that has been supported by a system-wide, collaborative endeavour across Scottish education to make Scotland the best place to grow and learn.”

Professor Chris Chapman, Senior Academic Adviser to the Scottish Attainment Challenge programme, said: “This report highlights both government’s commitment to equity and the cultural change that has occurred in Scottish education over the past five years.

“The drive to improve outcomes for children and young people from Scotland’s most disadvantaged communities has been placed centre stage of the reform agenda.

“Furthermore, the COVID-19 pandemic has highlighted the challenge and magnified the necessity of ensuring that all children and young people reach their full potential irrespective of their circumstances.”

A Scotland for All of Us

Poverty Alliance launch Holyrood Election manifesto

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:

  • 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.”

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Communites Funding Package: Supporting local neighbourhoods through the pandemic

A combined total of £1 billion has been allocated to help local communities through the coronavirus (COVID-19) pandemic, and to build resilience in public services in the past year.

Of this, more than £550 million has been committed through the Communities Funding Package – launched a year ago this week. This has been distributed across councils, local services and initiatives supporting those in need.

Key elements include:

  • more than £140 million on tackling food insecurity, with over £51 million to enable the continued provision of Free School Meals during school closures and holiday periods
  • help for local councils to meet people’s needs over the winter period, with £40 million of financial insecurity funding and £30 million to help people impacted by COVID restrictions and guidance. In conjunction with the Freephone national assistance helpline, councils have provided support to access and afford essentials, including food and fuel
  • almost £80 million awarded to third sector and community organisations through the Wellbeing Fund, Supporting Communities Fund and the Third Sector Resilience Fund
  • the continuing Community and Third Sector Recovery Programme, which is expected to make £44 million of awards by this summer

On top of the £550 million communities funding package, a further £479 million has been awarded to local councils to meet demand for local services, and build resilience across the sector.

Cabinet Secretary for Communities and Local Government Aileen Campbell said: “We know that the impacts of the pandemic have been felt unevenly across Scotland, with many of the most disadvantaged or marginalised bearing the heaviest weight.

“This significant investment has helped protect people and communities during these unprecedented times.

“We have worked hand in hand with councils, third sector partners and communities themselves to direct funding where it was needed most and to ensure that support is there when people need it most.

“I want to thank everyone involved, right across Scotland, in this unprecedented response – demonstrating what a caring country Scotland is and protecting people.”

Michelle Carruthers, Chief Executive of Food Train, which received funding as part of the strategic national investment in order to continue delivering food parcels to older people, said: “There is no doubt in my mind: the support funding we have received from the Scottish Government during the pandemic has driven our ability to respond to the 70% rise in need for our grocery shopping service. 

“The pandemic shone a harsh spotlight on food insecurity issues facing older people which Food Train has responded to through increasing our regional coverage of grocery deliveries, increased meals shared via our Meal Makers project and a new service, Food Train Connects, matching volunteers and older people in areas where we don’t have a branch.”

The Communities Funding mapping tool highlights investment across Scotland, including by local authority. 

New and expectant mums face increased mental health risks caused by the pandemic

Report raises concerns as services supporting women and babies come under strain

During and after pregnancy, women have faced greater likelihood of poor mental health during the pandemic, including anxiety, depression, loneliness and suicidal thoughts, according to a new report commissioned by a coalition of leading maternal mental health organisations. 

Women of colour and women from poorer economic backgrounds are more likely to experience mental health problems during and after pregnancy, according to the research. 

The rapid review of evidence commissioned by the Maternal Mental Health Alliance (MMHA), and conducted by Centre for Mental Health, for the first time compiles all available evidence into one place.

This shows that access to crucial services reduced for pregnant women, new mums and babies across the UK, especially during the early stages of the pandemic. While health and care staff worked hard to deliver safe care, significant gaps emerged. Women also experienced a reduction in informal support from friends, relatives and networks of other women sharing their experiences.

Extra pressures include anxiety about giving birth during lockdown without partners present, fears of losing jobs, heightened levels of domestic violence, bereavement, worries about catching Covid-19, and concern about new infants catching the disease. 

The MMHA, a network of over 100 national organisations, together with lived experience champions and clinicians, is calling on Ministers to fill the pre-Covid gaps in specialist perinatal mental health.

In addition, the wider system surrounding these services, including health visiting and maternity, needs to be protected and enhanced. Furthermore, up-to-date monitoring and research of maternal mental healthcare should be commissioned.

It also says that without sustained funding, many Voluntary and Community Services will not survive, despite the increased demand from women for their services. 

Luciana Berger, chair of the Maternal Mental Health Alliance (MMHA) said: ‘Today’s report should serve as an ear-splitting warning siren about the dangers to women’s maternal mental health and potential risks to the wellbeing of their babies.

The pandemic has placed additional challenges on new and expectant mums getting the care and support they need, taking many already-stretched services to the point of breaking. Women of colour and women from disadvantaged backgrounds have been particularly impacted, and Ministers must address this injustice with urgency.’ 

Sarah Hughes, chief executive of Centre for Mental Health, which carried out the research, said: ‘The Covid-19 pandemic has been a mental health challenge across society, but it has not affected everyone equally. It has placed especial pressure on women during pregnancy and after they’ve given birth.

“And it has made inequalities that were always there in plain sight even more pronounced. We need to take this opportunity to review and reframe what support women should expect for their mental health during the perinatal period, and to make sure that we prepare for any future crisis to avoid another loss of support at a crucial time in people’s lives.’

Aleema Shivji, Comic Relief Executive Director for Impact and Investment said: ‘The pandemic has put an unprecedented strain on the nation’s mental health and it is sadly no surprise that, as this report proves, pregnant women and new mums who face enormous challenges, have sadly been worst affected. 

“It’s clear that more work is needed urgently to help tackle the shame and stigma attached to maternal mental health for mums to feel recognised, supported and able to ask for help. At Comic Relief we have prioritised funding mental health services for over 25 years, but it is clear this is still needed now more than ever.’

Today’s report Maternal mental health during a pandemic was commissioned by the Maternal Mental Health Alliance and conducted by Centre for Mental Health, and covers all four parts of the UK.

Joanna Barrett, Associate Head of Policy (Nations) at NSPCC Scotland, said: “This report highlights the profound impact the pandemic has had on the mental health of parents during and following pregnancy, particularly in the most deprived communities of the country.

“We have long warned that without the right support at the right time, adult mental health problems during pregnancy and the first year can have serious immediate and long-term consequences for both young children and their families.

“That’s why our Fight for a Fair Start campaign is calling on the Scottish Government to invest in universal early years support, to give professionals the ‘time to care’ to develop positive and trusting relationships with infants and their families.

“This will give babies the best possible start in life, the support to recover from the pandemic, and the opportunity to thrive not just survive.”

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Local Government Living Wage for all city council staff

Every employee of the City of Edinburgh Council will earn at least the Scottish Local Government Living Wage (SLGLW) in their base pay from 1 April. 

The news was announced by Council Leader Adam McVey at yesterday’s Full Council meeting and follows months of joint working with the Trade Unions to arrive at a simpler, fairer and sustainable pay structure for the organisation. 

Consolidating the Scottish Local Government Living Wage means the Council can deliver an increase in pay to nearly 4,500 of its lowest-paid employees, demonstrating progress in its continued efforts to become a Scottish Fair Work employer and work towards eradicating poverty in Edinburgh by 2030. 

Since 2013, the Council has topped up pay to meet the Living Wage. By now consolidating the Living Wage into base pay we are making changes to the lower part of the pay structure, which means that 4,400 of employees in grades 1 to 3 will have a pay increase, equivalent to more than £200 extra per year on average for full-time employees.

The new pay structure also reflects the Council’s efforts to incorporate the principles of the Edinburgh 2050 City Vision, which were developed based on residents’ aspirations to build a welcoming, thriving, fair and pioneering Capital city.

Discussions will continue with the Trade Unions on further proposals to simplify pay and related allowances for other employees, to help deliver a fairer, simpler and sustainable pay framework for the future.

Cllr McVey said: “We’re one of the Capital’s largest employers and we want to – and must – lead by example if we’re to help steer Edinburgh towards the fair and equitable future we collectively strive for.

“I’m therefore delighted to confirm our commitment to being a Living Wage employer by announcing that, from 1 April, everyone who works for the Council will earn at least the Scottish Local Government Living Wage as part of their basic pay. This means on average full-time employees in grades 1-3 will have an uplift in their pay of more than £200.

“As a city, we’ve set ourselves the hugely ambitious target of eradicating poverty by 2030 – in fact, we’re the first UK local authority to set such a target. Today’s confirmation of a new simple and fair pay structure proves we’re ‘walking the talk’ on poverty and rewarding our hard-working employees properly for the roles they play in helping to look after this great city and our communities.”

Depute Council Leader Cammy Day said: “I want to say thank you to all the Trade Union representatives who’ve worked so hard on this with our team so that we were able to make this announcement today.

“Our people have been doing an incredible job in exceptionally challenging circumstances during this pandemic so to be able to make sure every single one of our employees will earn at least the SLGLW as part of their basic pay from next month is extremely welcome.

We want to go even further than this, though. That’s why we’ll continue to engage constructively with the Joint Trade Unions towards making positive and lasting change to the organisation on behalf of our colleagues.

“There’s much still to be done to simplify pay and conditions of service and in a way that’s fair, sustainable and, importantly, financially viable.

Speaking before last month’s council budget meeting, Unison City of Edinburgh branch secretary Tom Connolly said: “Staff in local government need to be rewarded and paid well for the jobs that they do, there are many low paid workers in local government providing face to face support to or most vulnerable children and adults, in school, care homes, etc.

“Other council staff keep our public buildings clean, keep our roads clear, clean our streets and empty our bins, administrative and clerical workers dealing with benefits and other essential administrative tasks, all examples of low paid and undervalued workers who have continued to keep the city running.

“These workers now need to be given the value that they have always deserved and rewarded with decent pay and conditions. Clapping does not pay the bills.”

Carnegie UK Trust report: The future of the Minimum Wage

The UK Government has been urged to hold firm on its commitment to boosting the minimum wage over the course of this parliament, in order to give low paid workers a much needed pay rise. But the government must also take wider measures to boost job quality and tackle poverty, and provide additional support for employers to adapt to higher minimum wage.

New research published by the Carnegie UK Trust and the Learning and Work Institute argues that despite the pandemic and the recession it has triggered, the ambitious minimum wage targets of the next four years are both deliverable and vital for low paid workers.

In 2019, the Government pledged to increase the National Living Wage – the legal minimum wage for workers aged 25 and over – to two thirds of median pay by 2024, and to extend this rate to workers aged 21 and over. Polling commissioned by Learning and Work Institute and Carnegie UK Trust shows that a majority of workers (66%) and businesses (54%) support the move.

The report argues that increases in the minimum wage must be part of a wider mission to support ‘good work’ across the economy.

Polling of employers as part of the research found that 22% of employers with a high proportion of workers on low pay said they may respond to a higher wage floor by using more insecure job contracts, with 17% saying they would cut back on non-pay benefits. 12% of low pay employers said they may remove supervisory or managerial roles in response to a higher minimum wage, risking more ‘bunching’ of workers at or near the wage floor and making progression more challenging. 

The report calls for the increase to the minimum wage to be part of a wider strategy for good work, including promoting sectoral collective agreements in low pay sectors, in order to agree common standards beyond the minimum wage.

While recent increases in the minimum wage have been successful in reducing the number of people on low pay, the number of people in in-work poverty has continued to rise.

This is in part because increases in the wage floor have been accompanied by cuts to in-work benefits for those on low incomes and with high living costs, which have pushed more working people into poverty. Any increases in the wage floor need to be accompanied by better support through the social security system, including through retaining the £20 uplift in Universal Credit which is due to end in April.

The report considers support needed to help employers who are hard hit by the coronavirus pandemic to adapt to the new wage floor.

It calls for a temporary re-balancing of employer national insurance contributions (NICs) as a transitional measure to support employers to adapt and minimise any risks to employment of a higher minimum wage.

Through both increasing the threshold at which employers start to pay NICs, and increasing the rate at which NICs are paid, government could reduce the tax burden on employers who are impacted by the increase, supporting them to adjust to higher wage costs, whilst protecting overall revenue for the Treasury.

Douglas White, Head of Advocacy at Carnegie UK Trust, said: “Good work has a vital role to play in supporting wellbeing – and decent pay is of fundamental importance. Many low pay workers have been on the frontline during the pandemic and we were pleased that November’s spending review confirmed a rise in the minimum wage.

“Our report sets out a path towards future sustainable minimum wage increases – providing support for employers as they recover from the pandemic and ensuring that workers receive the pay rise that they deserve and need.

“We also urge government to be ambitious in driving forward other crucial aspects of their good work agenda, including supporting workers to train and re-skill and making progress to build back a resilient labour market from the pandemic”. 

Joe Dromey, deputy director of research and development at Learning and Work Institute and author of the report, said: “Government can still achieve its commitment to boosting the minimum wage, but this will be trickier after the pandemic. A temporary rebalancing of employer national insurance contributions would help businesses to adapt to a higher wage floor, minimising any potential job losses.

“While increasing the minimum wage would deliver a much-deserved pay rise to millions of low-paid workers, this alone will not tackle the scourge of in-work poverty. Government must ensure sufficient support through the social security system, starting by retaining the £20 increase in Universal Credit.”

We have published the final report in our series looking at the future of the minimum wage, and exploring its impact on workers, employers and the economy.

The UK’s minimum wage is widely regarded as a successful policy which has achieved broad political support over the last two decades, and successfully reduced extreme low pay without damaging employment.

Despite these successes, a rising minimum wage has not been enough to tackle in-work poverty.

And even before the pandemic inflicted severe pressures on the economy, there was a need to understand the ability of businesses to adapt to a higher wage floor, and ask whether changes made by employers to accommodate higher pay might compromise other important aspects of job quality, such as progression or terms and conditions.

Given the significant impact of the pandemic on the economy and household income, the future of the minimum wage is even more important and contested. Low paid workers need a pay rise, but businesses may need extra support to adapt to a higher wage floor.

Our report makes recommendations about the future path of the minimum wage, and sets out proposals for how an increased minimum wage can be delivered as part of a wider labour market strategy that promotes good work and tackles in-work poverty.

We would be delighted to hear your views on the ideas in the report.

You can get in touch with us on Twitter @CarnegieUKTrust, using the hashtag #MinimumWage or you can let us know your thoughts by emailing Gail Irvine, Senior Policy and Development Officer, ongail.irvine@carnegieuk.org.

Kind regards,

Sarah Davidson

Chief Executive, Carnegie UK Trust

Twitter: @CarnegieUKTrust

www.carnegieuktrust.org.uk

Three-in-ten new Universal Credit claimants have seen their debts grow during the crisis

Over three-in-ten people who have started claiming Universal Credit (UC) during the pandemic have either acquired new debts, or seen their existing debts grow, as the crisis enters its eleventh month, according to new research published by the Resolution Foundation.

The debts that divide us – which includes analysis of a detailed online YouGov survey, supported by the Health Foundation – explores how people who have newly claimed UC during the pandemic have coped financially, as well as their prospects for the coming months.

The Foundation notes that of the almost six million people who are currently claiming UC, around three-in-five made a new claim in 2020, including many of the 1.4 million people who made a new claim at the start of the crisis in April and May of last year.

The research finds that families newly claiming UC have taken a major income hit, even with the vital £20 a week uplift to UC. Almost half (45 per cent) reported seeing their income fall by at least a quarter, while around one-in-three (34 per cent) reported seeing their income fall by at least 40 per cent.

And with the pandemic-induced economic crisis having lasted almost a year, the research shows that the big income losses faced by people moving onto UC are taking their toll on their ability to cope financially.

The research finds that over three-in-ten (31 per cent) new UC families have either acquired new debts or seen their existing debts grow, while around one-in-five (21 per cent) have fallen behind on paying essential (non-housing) bills.

Looking ahead to the next three months, a period in which UC is set to be cut by £20 a week (from 5 April 2021), three-in-five (61 per cent) UC families say they will struggle to keep up or will fall behind on bills, around twice the proportion of families across the economy as a whole (31 per cent).

The Foundation says that the uplift to UC has been essential for protecting family incomes during a pandemic that is lasting far longer than anyone expected when the policy was announced back in March 2020. The uplift is likely to prove just as vital in the coming months too, as more people claim UC off the back of rising unemployment.

It adds that with millions of households claiming UC experiencing real financial hardship, cutting their support in just two months’ time would be a grave error – and extinguish any hopes of a living standards recovery this year.

Karl Handscomb, Senior Economist at the Resolution Foundation, said: “Over three million people have started claiming Universal Credit since the pandemic began, including 1.4 million people who moved onto the benefit right at the start of the crisis.

“As the pandemic reaches its eleventh month – a depressing duration few expected last March – the income shock from with moving onto Universal Credit has evolved into mounting debts and arrears on essential bills.

“The Chancellor was right to raise Universal Credit to support families through tough economic times. And with tough times set to continue as unemployment rises through 2021, this vital boost to family incomes must be maintained.

“Cutting the incomes of six million families in just two months’ time, when public health restrictions are still likely to be widespread, makes no sense politically, economically, or in terms of raising people’s living standards.”