National and Local Profile of Child Poverty Mark Willis, CPAG in Scotland

What is poverty? “Individuals, families and groups in the population can be said to be in poverty when they lack resources to obtain the type of diet, participate in the activities and have the living conditions and amenities which are customary, or at least widely encouraged and approved, in the societies in which they belong.”

How do we measure child poverty? The number of children in households whose equivalised net income after housing costs is below 60% of the UK median income in the same year.

Scale of child poverty in Scotland Before housing costs: 1 in 7 After housing costs: 1 in 5

Low Income and Material Deprivation Outdoor space or facilities nearby to play safely Enough bedrooms for every child of 10 or over of a different sex to have their own bedroom Leisure equipment such as sports equipment or a bicycle A family holiday away from home for at least one week a year A hobby or leisure activity Friends around for tea or a snack once a fortnight In winter, able to keep accommodation warm enough Replace any worn out furniture Replace or repair major electrical goods such as a refrigerator or a washing machine, when broken Go on school trips Toddler group/nursery/playgroup at least once a week Fresh fruit and vegetables eaten by children every day Warm winter coat for each child

Child poverty in Falkirk Falkirk: % children in poverty Varies within Falkirk locally, e.g. Bonnybridge & Larbert 15% Grangemouth26%

Child poverty measures, benefits and minimum income standards Weekly income from IS/JSA, Child Tax Credit & Child Benefit Poverty Line 60% of national median after housing costs (£ per week) Minimum Income Standards not including rent or childcare (£ per week) Percentage of Minimum Income Standards Lone parent with two children £224.33£264£ % 69% Couple with two children £266.08£357£ % 74%

Impact on health health compromised from birth - average birth weight significantly lower (End Child Poverty, 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)

Impact on education children in poverty nine months behind in terms of “school readiness” by age three; (Centre for Longitudinal Studies, 2008) by age 5 gap of 10 months in problem solving and 13 months in vocabulary development; (GUS 2011, JRF 2014) by S2 pupils in areas of low deprivation twice as likely to be performing well on numeracy, with 16 percentage points difference in reading; (JRF 2014) school leavers from areas of high deprivation − lower attainment tariff 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

Progress Real progress: between 1997 and fewer children in poverty in Scotland positive impact on measurable child wellbeing Policy works at UK and Scotland level: − commitment to eradicate child poverty by 2020 − investment in child benefit and tax credits − childcare − minimum wage, parental rights, employability support − income maximisation − affordable housing; lower housing costs in Scotland have helped keep child poverty lower than UK

Challenges UK social security cuts £2bn pa in Scotland alone, including those in work Welfare Reform & Work Bill: Benefit rates frozen for four years Massive rises in child poverty predicted - up to 100,000 more children in poverty by 2020 in Scotland Poverty increasingly acute – crisis, foodbanks

CHILD POVERTY ‘ERADICATED’ Welfare Reform & Work Bill repeals the duty to report on, create a strategy to tackle and reduce child poverty Replaced by measures of ‘life chances’: worklessness, drug/alcohol problems and educational attainment Child Poverty Act 2010 to be renamed ‘Life Chances Act’ Scottish Government considering setting its own targets/duties

The role of local authorities Welfare rights advice Scottish Welfare Fund Housing benefit, Discretionary Housing Payments (DHPs), council tax Poverty-proofing education and services Living Wage, employability and childcare Free early years and children’s activities

Universal Credit Means-tested, working age benefit, payable in or out of work Includes amounts for adults, children, housing costs and childcare costs in work Falkirk ‘live’ since May 2015 – single jobseekers who meet Gateway conditions From April 2016, work allowances to be reduced for parents and disabled people, scrapped for others

Universal Credit: issues for local authorities Online claims: support for people lacking resources/skills Budgeting: single monthly payment/ alternative payment arrangements Need for flexible employment, childcare Increased sanctions and hardship likely

Welfare reform: issues for local authorities Benefit Cap: to be reduced to £385 couple/lone parent or £258 single person per week during 2016/17 From April 2017: Two child policy: new third or subsequent child not supported by tax credits or universal credit New ESA or UC claimants will not get a ‘work-related activity component’ (£29.05) – reduced to JSA level Planned restriction on housing costs for year olds

Support from CPAG in Scotland Advice line for advisers and support workers: Training, e-Learning Information, factsheets Early Warning System