Child Poverty in Scotland: an overview

1. Child Poverty in Scotland: an overview

2. About CPAG 2 strands to the work that we do: 1. Provide advice, information and training on Welfare Benefits and Tax Credits 2. Campaigning and policy work around child poverty

3. Definition of Poverty People are considered as living in poverty if they live in households with less than 60% of median household income A single person is in poverty if they are living on less than £128 per week A lone parent family with two children (e.g. aged 5 and 14) are living in poverty if they are living on less than £264 per week A couple with two children (again aged 5 and 14) are living in poverty if they are living on less than £357 a week

4. Child Poverty in Scotland: context • 200 000 (20%) children living in poverty (2011/12, after housing costs – 15% or 150 000 before housing costs) • some children at even greater risk • families someone is disabled (I in 3) • one parent families (nearly half) • families without paid work (over two thirds) • affects families across Scotland, • ECP child poverty map of Scotland www.endchildpoverty.org.uk • nearly every Scottish LA has areas where more than one in five children in poverty • Argyll & Bute 14%

5. Overall impact • lowest-income households with children affected the most (IFS, 2012) • latest IFS forecast increase to 28.4% by 2020 – c70 000 more children into poverty in Scotland alone (IFS 2013). • benefit changes and lower wage growth forecast to leave majority of children below the Minimum Income Standard by 2015

6. Child poverty: trends • 210 000 (21%) children living in poverty (2010/11after housing costs – 17% or 170 000 before housing costs) • some children at particular risk • families affected by disability • one parent families • families without paid work • affects families across Scotland, but concentration and nature varies • ECP child poverty map of Scotland www.endchildpoverty.org.uk

7. Overall impact continued… • overall impact tax & benefit changes 2010-15: ‘bottom’ half household income cut by over 2%, ‘bottom’ 20% by 4 to 5%. (IFS, 2013) • lone parents – lose over 8% of their net income (IFS,2011) • disproportionate impact on disabled and ill

8. Impact of Welfare Reform in Scotland Between 2010 – 2015, projected that Welfare Reform will have taken £2billion out of the Scottish Economy Argyll & Bute will lose on average £10.5 million a year over the next 2 years Highland will lose a projected £44.68 million from now to 2015 Main losses across Scotland are DLA, Housing Benefit, Child Benefit and Tax Credits – account for 89% of cuts (source: PCE2)

9. Impact on health and wellbeing • health compromised from birth - average birth weight significantly lower (ECP, 2008) • more likely to have chronic illness as toddlers (ECP, 2008) • more likely to suffer mental distress (CPAG, Poverty in Scotland 2011) • long term health problems and poor general health increases as deprivation increases (NHS Health Scotland, March 2013) • greater risk of problems with psychosocial health and language (GUS, 2010) • increased risk of unintentional injury (GUS, 2010) • increased exposure to risk factors relating to maternal ill health and poorer diet (GUS, 2010)

10. Impact on education • children in poverty nine months behind in terms of “school readiness” by age three (Centre for Longitudinal Studies, 2008) • on entering primary school 33% of poorest children have developmental difficulty compared to 7% of most affluent (Save the Children, 2012) • gap widens as go through school (CPAG, 2007) • school leavers from areas of high deprivation • lower attainment tarriff score - half that of least deprived • less likely to enter positive destinations – 22% don’t, compared to 5% of least deprived (Scottish Government 2012) • attainment gap remains stubbornly wide • limited evidence priority for action

11. What needs to happen? Economic growth not in itself enough - under current policies better off benefit whilst poorer households continue to see incomes drop (Resolution Foundation, 2013) UK: rethink tax, benefit and labour market policies Scotland, at local and national level: • Proof every policy and budget decision for impact • Continue to invest in Scottish Welfare Fund and Council Tax Reduction Scheme • Invest in advice and information • Build on Living Wage to tackle low pay • Invest in early years and childcare • Reduce costs of school: extend free school meal entitlement, improve school clothing grant; develop and share good practice on charging

12. What can we all do? • Be aware, and promote awareness, of context of children’s lives and the barriers families face as incomes squeezed and prices rise • Support and promote practical solutions e.g. maximising family incomes, accessing services, reducing costs and removing barriers • Be aware of the stigma surrounding benefits and poverty

13. What can we all do? cont. Collectively advocate: use local routes to collect experiences of people living in A&B to feed into national policy Offer information on money and benefits to everyone If someone asks you about benefits and you don’t know the answer, call CPAG!

14. CPAG in Scotland Advice line for advisers0141 552 0552Monday to Thursday 10am to 4pmFriday 10am to 12noonemail advice@cpagscotland.org.uk