The impact of Child Poverty on Health, Wellbeing and Life chances Community Planning Partnership Board: Fair For All – Tackling Child Poverty 29 November 2018 The impact of Child Poverty on Health, Wellbeing and Life chances Dr Regina McDevitt Public Health Specialist, NHS Ayrshire & Arran

Child Poverty in Ayrshire and Arran What are the causes of child poverty What are the consequences of living in poverty for children What is the extent of child poverty nationally and locally What can we do to reduce the effects of poverty

Causes of Poverty The causes of child poverty are Structural Issues International: Global downturn, UK recession, globalisation, Macro-economic: Employment, in-work poverty (low pay, zero hours, etc.), cost of living, wages freeze.. Political: Austerity, social security; UK welfare reform (benefits cap; two-child limit, Universal Credit), Social: barriers to accessing benefits, lone parent, disability, refugee, etc... Individual: fitness to work, skills, qualifications

8 X 3 X 2 X Consequences of Poverty for Health & Wellbeing in Children A&E 2 X 2 X 2 2 X 2 X 3 X

Healthy Life Expectancy Life chances of young people living in impoverished families 50% 8X 7 y 17 y Life Expectancy (female) Healthy Life Expectancy (female)

Scale of the issue Latest measures of child poverty in Scotland   Absolute number 2015/161 20182 Relative poverty 260,000 26% 23% Absolute poverty 230,000 20% Combined material deprivation and low income 110,000 12% 11% Persistent poverty 10% This slide shows the number and percentage of children (under 16) in poverty in Scotland, aligned to the four headline income targets in the Child Poverty (Scotland) Bill. Definitions Relative: Household income less than 60 per cent of the median equivalised net income for that financial year Absolute: Household income below 60 per cent of the median equivalised net income in 2010-11 Combined low income and material deprivation: Household income less than 70 per cent of the median equivalised net income for that financial year AND household has experienced material deprivation in that year (from a list, discussed in more detail in the SPICE briefing – only if parent reports they lack because they can’t afford, not because they don’t want them) Persistent poverty: living in relative poverty at least three of the past four years Source: Macpherson and Shaw (2017). SPICe Briefing: Child Poverty (Scotland) Bill SP17-10. Available from: http://www.parliament.scot/ResearchBriefingsAndFactsheets/S5/SB_17-10_Child_Poverty_Scotland_Bill.pdf (which also gives a rationale for these targets) In addition, the Scottish Household Survey (2015) suggests that 448,000 children (45%) live in households who ‘get by alright’ financially and 117,800 (12%) live in households who either don’t manage very well financially, have some financial difficulties or are in deep financial trouble. 1Source: HBAI dataset, DWP 2015/16; Understanding Society, 2010-2015. 2Source: Scottish Government: March 2018 https://www2.gov.scot/Resource/0053/00533142.pdf

Child Poverty Definitions Relative poverty measures poverty relative to the rest of society. It is the proportion of children living in households with equivalised incomes below 60% of the median (middle) UK income in the current year. Absolute poverty measures changes in poverty relative to a point in time. It is the number of children living in households with equivalised incomes below 60% of the median UK income in the base year – currently 2010/11 - adjusted for inflation. Combined low income and material deprivation measures whether households are able to afford basic necessities. It is the number of children living in households with equivalised incomes below 70% of the median UK income AND going without certain basic goods and services. Persistent poverty measures whether people have been living in poverty for a number of years. It is the number of children who have lived in relative poverty in 3 of the last 4 years

Who is affected? Source: HBAI dataset, DWP 2015/16

Projected child poverty rates: if we do nothing.......? relative absolute combined persistent Source: Reed and Stark 2018[1]

Estimated loss from UK Welfare Reforms in £m per annum 2015 to 2020-21 Areas North Ayrshire £33m East Ayrshire £27m South Ayrshire £22m

19,171 Percentage of Children living in Poverty (January 2018) North Ayrshire BHC = 18.6% AHC = 29.3 % East Ayrshire BHC = 16.7 % AHC = 29.4% Total number of children, all ages, living in poverty AHC in Ayrshire and Arran (2018): 19,171 South Ayrshire BHC = 15.4 % AHC = 24.4% End Child Poverty, Jan 2018

Child Poverty in North Ayrshire - After Housing Costs (Jan 2018)

Household Necessities Child Necessities Children in families with limited resources across Scotland (2014-2016: A combination of living on a low income (70% of middle incomes) and being unable to afford basic necessities (3 out of 22 in list below): Household Necessities Child Necessities Access to £500 to cover unexpected necessary expense Make regular pension payments Regularly save at least £20 for rainy days Repair/replace electrical goods Take part in hobby Take part in sport/exercise Home contents insurance Afford dental work/treatment House decent decoration Damp-free home Job interview clothes Money to save Holiday away from home 1/year Day trips with family 1/month Gets pocket money Bedroom each child ≥ 10 y Attend toddler group 1/wk Access computer & internet Garden/outdoor space safe play Some new not second-hand clothes Warm winter coat At least 4 pairs trousers/leggings/ jeans etc... https://www2.gov.scot/Topics/Statistics/Browse/Social-Welfare/IncomePoverty/LAPovertyData/limited-resources

Children in Families with Limited resources in North Ayrshire (Scottish Government Experimental Statistics, 2018) https://www2.gov.scot/Topics/Statistics/Browse/Social-Welfare/IncomePoverty/LAPovertyData/limited-resources

What can we do to mitigate child poverty? Increase income to families via employment (inclusive economic growth) Increase income to families using benefits system Reduce living costs to families

Pregnancy and Early Years Cost of Pregnancy work Extra Hours Broaden Eligibility Welfare Foods Income Maximisation Specialist services / LA Joint LA/NHS services NHS Referral Pathway Benefit Automation We are not starting from zero: lots of good work established and planned Education Cost of the School Day Uniform Grants Holiday Hunger Gap FSM & Breakfast Clubs Pupil Equity Fund Attainment funds Housing Fuel Efficient Housing, New Affordable Housing, Homeless Children Strategy & Policy Children’s Services Plans , LOIPS, SOA Locality Planning Strategic Priorities