TACKLING CHILD POVERTY: KEY CONTEXTUAL ISSUES Stakeholder Discussion Seminar 23 November 2017

Tackling child poverty: The Context Scottish poverty trends Long term Risk rates Disability Drivers of change National Policy responses in Scotland Looking to the future: changing the conversation on poverty... 2

Long Term Poverty Trends in Scotland Children 1995/96: 32% 2015/16: 26% 2005/06: 24% Working age adults 1995/96: 18% 2015/16: 20% 2005/06: 19% Pensioners 1995/96: 31% 2015/16: 16% 2005/06: 16% 3 3 3

Poverty trends: varations in risk Child Poverty: Still higher risk than other groups (2014/15) 41% in lone parent households are at risk of poverty. 20% in lone parent h/h where parent is in f-t employment are in poverty. 5% in couple h/h where both in f-t employment. 56% in couple h/h where one or more in p-t work. Overall 70% of children living in poverty are in a h/h where someone is in employment (2015/16) Working age adults: No real change since 1990s. 19% of adult h/h without children are in poverty. 26% of lone male & 28% of lone female h/h are in poverty. 25% of adult h/h aged 20-24, 22% adult h/h aged 40-44 (no kids) 4 4 4

Poverty and Disability There is a close association between poverty and disability 28% of people in poverty have a disability, a further 20% live with someone who has a disability 31% of families with a disabled child or adult are in poverty compared to 18% for those without a disabled person. Two thirds of disabled people living alone are in poverty and 44% of disabled young adults are in poverty 5 5 5

Drivers of poverty Changes in social security Significant cuts in social security since 2010 – to the value & restrictions to entitlement worth around £14bn per annum up to 2015 Continued cuts from 2015-20. Expected by 2020 to be spending £27bn less on social security Significant areas of cuts include – child benefits frozen from 2011, 1% increase to various benefits, introduction of benefits cap, restrictions to entitlement to CB, freezing of working age benefits (2016-20)... 6

Drivers of poverty Labour market change Growing levels of employment over last 20 years, despite recession of 2008-12. Employment rate in Scotland around 75% Continued growth in atypical work – around 21% now work in part- time employment, and more than 14% self employed. Almost 1 million people work on zero hours contacts Average earnings have fallen and stagnated since 2008 Around 404K in Scotland paid less than the LW in 2016 More than 80% of bar staff paid less than LW 7

Policy context in scotland New salience and profile to issues of poverty and inequality in Scottish policy discussions. Recent developments: Introduction of the Social Security Bill setting out how (some) new powers will be used. Human rights should be central to the design of the new system. A new claimants charter is to be developed outlining rights Creation of a new Poverty and Inequality Commission – this will scrutinise Scottish Government policy, will be fully independent and in statute by 2019 8

Policy context in scotland Other key developments: New Child Poverty (Scotland) Act 2017: new long term targets to reduce child poverty – less than 10% in relative poverty by 2030 & less than 5% in persistent poverty CP Act will also require regular reporting on progress from Scottish Government as well as the production of joint annual Child Poverty Action Report by Local authorities and health boards Commencement of a Socio Economic Duty, intended to hold public bodies to account on the strategic spending decisions they make 9

Policy context in scotland Other key developments: Continued focus on inclusive growth underpinned by the fair work agenda. Central to this is the development of a Living Wage Nation, with a greater focus on sectoral and place based approaches to LW Development of a new Fuel Poverty Strategy, currently out for consultation Efforts to address educational inequality through Scottish Attainment Challenge 10

Looking to the Future IFS project that child poverty in the UK will increase from 29.7% to 36.6% by 2021 – this is driven by continuing freeze on benefits, and will impact particularly on larger families Positive developments in Scottish policy can be used to counter potential negative developments, but strong action will be required to match rhetoric on social security & fair work Local approaches to prevention & mitigation will be become more important in this context 11

Contact Peter Kelly Director peter.kelly@povertyalliance.org www.povertyalliance.org @PovertyAlliance