Note of Meeting of Scottish Fuel Poverty Forum 30 May 2008 – Annex A

Brian DornanHead of Tackling Poverty Team Public Health & Wellbeing Directorate

Poverty in Scotland - developing the Scottish Government’s approach

Social Inclusion: Tackling Poverty Team

What do poverty and inequality look like in Scotland?

Social Inclusion: Tackling Poverty Team

Social Inclusion: Tackling Poverty Team

•Poverty is a couple with two children living on less than £17,000 per year, or a single person living on less than £7,500 per year•1 in 6 people in Scotland are poor, including 210,000 children, 470,000 working age adults and 190,000 pensioners•Poverty is defined and measured using income, but the experience of poverty is not just about goods being unaffordable, and the solution is not just fiscal •Poverty causes social exclusion and is both cause and effect of different experiences in education, the labour market, health, housing and justice

•21% of children are in poverty

•38% of households in poverty have someone in work

•52% of children living in poverty are in households with working adult

•470,000 working-age adults are in poverty (up from 440,000 10 years ago)

•Not just an area deprivation problem- 77% of people in poverty live outside 15% ‘most deprived’ data zones

Social Inclusion: Tackling Poverty Team

Experience of poverty “I now buy food and bring it home – cooked chicken and things like that, because I’m scared to use the oven because I know it costs too much money. I only use the washing machine twice a week because I’m scared of what it costs”

“I’m really panicking about the rise in gas and electricity prices – and food is now a problem for me too. I am struggling to put food on the table after paying the bills” (source: JRF, “Voices of People Experiencing Poverty in Scotland” 2007)

Social Inclusion: Tackling Poverty Team

Poverty rates in Europe

0

5

10

15

20

25

Czech

Rep

ublic

Netherl

ands

Icelan

d

Norway

Denmark

Sloven

ia

Slovak

ia

Sweden

German

y

France

Austria

Finlan

d

Bulgari

a

Luxe

mbourg

Malta

Belgium eu

25

Cyprus

Hunga

ry

Estonia

Irelan

d

SCOTLAND

Portug

al

Poland

Roman

ia

United

King

dom

Spain

Italy

Lithu

ania

Greece

Latvi

a

Perc

enta

ge o

f peo

ple

in p

over

ty

Arc of Prosperity countriesEU averageScotland

Source: Eurostat. 2006 data. Scotland added.

Percentage of total income received by each income decile, Scotland

0%

20%

40%

60%

80%

100%

1994/95 1995/96 1996/97 1997/98 1998/99 1999/00 2000/01 2001/02 2002/03 2003/04 2004/05 2005/06

10

9

8

7

6

5

4

3

2

1

decile

• The poorest tenth of the population receive 2% of the country's total income

• The second poorest tenth receive 4%• The third poorest tenth receive 8%• The bottom three deciles combined receive 14% - this has

not changed in ten years• The Solidarity Target aims to change this

In contrast:• The richest tenth have 30% • The top three deciles receive over 50% of all income

Inequality

Social Inclusion: Tackling Poverty Team

Source: Scottish House Condition Survey 2005/06

0

400

800

1200

1600

2000

Income deciles 1 and 2 Income deciles 3 to 10

Hou

seho

lds

(thou

sand

s)

not fuel poor

not fuel poor

fuel poor

fuel poor

severely fuel poor

Source: Scottish House Condition Survey 2005/06

0

400

800

1200

1600

2000

Income deciles 1 and 2 Income deciles 3 to 10

Hou

seho

lds

(thos

ands

)

Social housing Fuel Poor

Social housing Not Fuel Poor

Private housing Fuel Poor

Private housing Not Fuel Poor

The Government Economic Strategy and poverty/ Solidarity The strategic approach to delivering the Government’s purpose:

“To focus the Government and public services on creating a more successful country, with opportunities for all of Scotland to flourish, through increasing sustainable economic growth.”

Social Inclusion: Tackling Poverty Team

Monitoring Progress

Purpose Target: Solidarity: Increase overall income and the proportion of income earned by the three lowest income deciles as a group by 2017

National Indicator 14: PovertyDecrease the proportion of individuals living in private households with an equivalised income of less than 60% of the UK median before housing costs

Social Inclusion: Tackling Poverty Team

• Prevention of poverty and tackling root causes• Helping to lift people out of poverty

• Alleviating the impact of poverty

Next steps:• Consultation runs to end June • Anti-Poverty Framework to be published this

year

Key Areas for Action:

Social Inclusion: Tackling Poverty Team