Tackling Poverty

A widely accepted definition of poverty is:

"When a person's resources (mainly their material resources) are not sufficient to meet their minimum needs (including social participation)." - Joseph Rowntree Foundation - 2014

Poverty is a growing problem across the UK, with around 1 in 5 people in Scotland living in relative poverty (After Housing Costs) in the 2017-20. Poverty levels vary by area, and are higher for certain groups such as lone parents, disabled people and those from a minority ethnic background.

There is no single solution to tackle poverty. To effectively help individuals and families to move out of poverty requires a broad range of action.

The Scottish Government's Tackling Child Poverty Delivery Plan sets out the key drivers of poverty reduction, these are summarised in the diagram below:

Poverty statistics and definitions

The Scottish Government and others provide a wealth of statistical evidence and information on poverty in Scotland and across the UK. The latest statistics are published annually (around March) and can be accessed on the Scottish Government website.

Poverty statistics in Scotland look at how the lowest income households compare with average income households. A household is considered to be in poverty if their income is less than 60% of the average income for that household type.

Key statistics

All of the statistics presented below are based on relative poverty after housing costs. In the reporting years 2017-20, it is estimated that in Scotland:

• 19% of the population (1.03 million people each year) were living in poverty;
• 19% of working-age adults (650,000 each year) were living in poverty;
• 24% of children (240,000 children each year) were living in poverty;
• 14% of pensioners (150,000 each year) were living in poverty;
• 61% of working-age adults (400,000 each year) and 68% of children (160,000 children each year) in poverty were in in-work poverty in Scotland.

Families at higher risk of poverty

The Scottish Government's Tackling Child Poverty Delivery Plan outlined six priority families who are at higher risk of experiencing poverty. These include:

• Lone parent families, the large majority of which are headed by women;
• Families which include a disabled adult or child;
• Larger families;
• Minority ethnic families;
• Families with a child under one year old;
• Families where the mother is under 25 years of age.

We know that structural factors outwith the control of these households can lead to many becoming trapped in poverty. Often, the main issue is lack of flexibility around work and care, but there are many factors at play including discrimination, which leads to the far higher poverty rates for children in these families

Simple definitions

Relative Poverty - how many families are on low incomes compared with middle income households.

Absolute Poverty - how many low income families are not seeing their living standards improving over time.

Low income and Material Deprivation - how many lower income families cannot afford basic necessities.

Persistent Poverty - how many families live on low incomes three years out of four.

In work poverty - how many families, where someone is in paid employment, are living in relative poverty.

More technical definitions can be found on the Scottish Government website

Poverty and Employment

Work has for a long time been seen as the route out of poverty for many, however in recent years the number of individuals living in in-work poverty has increased significantly.

This is influenced by a number of factors. However, for employment to offer a sustainable route out of poverty it must offer decent rates of pay, good training and support, opportunities to progress, a flexible working environment and enough hours in work to provide a wage that, as a minimum, meets basic needs.

Income from employment and earnings is one of the three key drivers of poverty reductions - therefore efforts are being taken to help individuals work and earn more. These include a range of initiatives such as:

• Fair Start Scotland
• Parental Employment Support Fund
• Work to build a Living Wage Nation
• Flexible Workforce Development Fund
• Workplace Equality Fund

The Scottish Government published it's Fair Work Action Plan in 2019, setting out plans to develop Scotland as a leading fair work nation.

Wider factors

Individuals ability to enter and progress in work are influenced by their personal and local circumstances. It is important to understand what potential barriers to employment individuals may face in order to develop tailored solutions.

These could include:

• Availability and affordability of childcare;
• Availability and affordability of transport to and from work;
• The strength of the local labour market and availability of suitable jobs;
• Requirements to care for a family member or friend;
• Managing a health condition or disability;
• Lack of relevant skills or qualifications, etc.

Child Poverty

Around one in four children in Scotland lives in poverty. A range of action is being taken to reduce this so that fewer children experience poverty.

Child Poverty Act

The Child Poverty (Scotland) Act 2017 sets statutory targets which help focus efforts to tackle and ultimately eradicate child poverty and help monitor progress.

The targets state that by 2030, of children living in Scottish households:

• less than 10% should be living in relative poverty
• less than 5% should be living in absolute poverty
• less than 5% should be living with combined low income and material deprivation
• less than 5% should be living in persistent poverty

The Act requires Scottish Ministers to publish child poverty delivery plans at regular intervals, with annual reports to measure progress.

Local authorities and health boards must also jointly publish annual reports on what they are doing to reduce child poverty in the local area.

The Act also established a statutory Poverty and Inequality Commission from 1 July 2019.

Tackling child poverty as part of a wider strategy

The Child Poverty Act is part of the Fairer Scotland Action Plan, which sets the overall strategy for tackling poverty and inequality in Scotland.

Tackling Child Poverty Delivery Plan

The Scottish Government published Every Child, Every Chance: the Tackling Child Poverty Delivery Plan 2018-22 on 29 March 2018. This plan sets out actions to be taken to progress towards the ambitious child poverty targets set for 2030. The next Delivery Plan will be published in March 2022.

The second annual report was published in August 2020, and the third annual report was published in June 2021.