Introduction to Child Poverty in Scotland

The Scottish Government has released the latest child poverty statistics for 2023-24, marking a small but significant decrease in child poverty rates since the previous year. Despite this decline, Scotland has missed its interim child poverty targets set out in legislation. The Scottish Child Payment (SCP), a key policy aimed at reducing child poverty, has played a crucial role in this development. However, the ongoing challenge remains substantial, with a continued focus needed to meet the legally binding targets by 2030.

Current State of Child Poverty in Scotland

As of 2023-24, the child poverty rate in Scotland stands at 22% for relative poverty, down from 26% in the previous year. This decrease, while positive, falls short of the 18% interim target required by the Child Poverty (Scotland) Act 2017. The Act mandates that child poverty should be below 18% by 2023-24 and less than 10% by 2030.

The statistics also reveal that:

• Absolute poverty has decreased to 17%, surpassing the target of 14%.
• Material deprivation is at 9%, still above the target of 8%.
• Persistent poverty remains at 23%, missing the target significantly.

Despite these mixed results, the decrease in child poverty rates signals a step in the right direction, albeit with much work still to be done.

Impact of the Scottish Child Payment

The Scottish Child Payment (SCP) has been instrumental in addressing child poverty. Introduced in February 2021 at £10 per week for children under six, it was later increased to £25 per week for all eligible children under 16 in November 2022. The payment provides an additional £1300 annually for each eligible child.

Modelling the Impact

Modelling by the Scottish Government estimates that the SCP will reduce relative child poverty by 4 percentage points by 2025-26 compared to what it would have been without it. This analysis reflects the policy's potential long-term effects and suggests why further investment is necessary for more substantial reductions.

Challenges and Future Directions

Despite the efforts, challenges persist:

• High Poverty Rates in Specific Groups: Families with single parents, those with a baby, and minority ethnic families continue to face high levels of poverty.
• Housing Costs: The UK's housing benefit system often fails to keep pace with rising rents, pushing more families into poverty.
• Economic Pressures: The cost-of-living crisis exacerbates financial hardships for low-income households.

Steps to Meet Targets

To successfully meet the 2030 targets, the Scottish Government must:

• Enhance Welfare Policies: Increase the SCP and ensure better alignment of social security benefits with the cost-of-living.
• Address Housing Costs: Improve housing benefits to keep up with rising housing costs.
• Boost Employment Support: Enhance childcare and job placement services to promote employment among eligible households.
• Collaborate with the UK Government: Work with the UK Government to mitigate harmful welfare policies like the two-child limit.

Conclusion

Scotland's progress in reducing child poverty is a step in the right direction, but it is critical to accelerate these efforts. The Scottish and UK governments must collaborate to develop and implement more effective policies to meet the legally binding targets by 2030. The upcoming child poverty delivery plan in 2026 will be pivotal in detailing the path forward.

Call to Action

To ensure Scotland meets its child poverty reduction targets, continued focus and collaboration from both the Scottish and UK governments are essential. The welfare system must be reformed to provide adequate support to low-income families. With commitment and significant policy adjustments, achieving these targets by 2030 remains within reach.

---