Statistics show the incomes of poorer Scottish households fell further behind those of middle income households in recent years, pushing more people into poverty.
Overall poverty rates have been relatively stable over the last decade with some fluctuations year on year. However in recent years, rising poverty rates alongside other indicators suggest low income households - especially households with children - are falling further behind those on middle incomes. Over the three-year period 2014-17, one million people in Scotland (each year) were in relative poverty after they had paid their housing costs.
In 2014-17, 16 per cent of people in Scotland were living in relative poverty, before housing costs, approximately 860,000 people each year. This compares to 15 per cent in 2013-16 and suggests a slowly rising trend since the all-time low in 2011-14. After housing costs, 19 per cent of people in Scotland were living in relative poverty in 2014-17, representing one million people each year. This is the same poverty rate as in 2013-16, but remained higher than previous years. Between 2012 and 2016, 8 per cent of people in Scotland were in persistent poverty before housing costs, or living in poverty for three or more of the four years. This rate was the same before and after housing costs. Trends in child poverty are more complex. The latest estimates signal relative child poverty and in-work poverty for children continue to rise before and after housing costs, but absolute poverty and the combined low income and material deprivation rate for children have remained broadly stable, and persistent poverty appears to have fallen.
Over the three-year period 2014-17, 19 per cent of children in Scotland, approximately 180,000 each year, were living in relative poverty before housing costs. This compares to 17 per cent in 2013-16. After housing costs, 24 per cent of children in Scotland were living in relative poverty in 2014-17, approximately 230,000 children. This compares to 23 per cent in 2013-16. In-work poverty showed a long term rising trend since 2007-10 which continued in 2014-17 with two thirds of children in in-work poverty (both before and after housing costs), living in households with at least one member in paid work. Absolute child poverty had been falling for a long time and was broadly stable in recent years, with 15 per cent of children in absolute poverty before housing costs in 2014-17, and 22 per cent after housing costs, both rates the same as in the previous three-year period. In 2014-17, 10 per cent of children were living in combined low income (before housing costs) and material deprivation, compared to 11 per cent in 2013-16. After housing costs, 12 per cent of children were living in combined low income and material deprivation, compared to 13 per cent in 2013-16. Further data will be required to clarify whether this is a longer term trend. Persistent poverty rates were higher for children compared to other age groups. Before housing costs, 9 per cent of children in Scotland were in persistent poverty between 2012 and 2016, compared to 10 per cent in the previous period. After housing costs, in 2012-16 10 per cent of children were in persistent poverty, compared to 14 per cent in the previous period. Further data will be required to clarify whether this is a longer term trend. Single-year estimates of child poverty that will be required for reporting as part of the Child Poverty Act are provided in data tables in the publication. Pensioner poverty and material deprivation present a mixed picture as well. Relative poverty for pensioners had been stable at a lower level than the other age groups for several years and may have started to rise in recent years. Pensioner material deprivation on the other hand appears to have fallen.
Relative pensioner poverty before housing cost was 17 per cent (170,000 pensioners each year) in the three-year period 2014-17, compared to 16 per cent in 2013-16. After housing costs, relative pensioner poverty was 13 per cent (140,000 pensioners each year), compared to 12 per cent in the previous three-year period. Pensioner material deprivation was 6 per cent in 2014-17 (60,000 pensioners each year), compared to 7 per cent in 2013-2016. Poverty by gender, disability and ethnicity: In the three-year period 2014-17, poverty rates for single adult women were higher than for single adult men, whether or not they had children. Poverty rates for minority ethnic groups were higher than for the white ethnic group. Poverty rates for families with a disabled family member were higher than for families with nobody in the family was disabled.
Income inequality has continued to rise in the three-year period 2014-17. The top ten per cent of households saw larger increases compared to lower income households. This resulted in low income households falling behind those in the middle and even further behind those at the top.
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