Memorandum submitted by Save the Children
EXECUTIVE SUMMARY
Save the Children is concerned by the peristence
of high numbers of children living in severe and persistent poverty
in Scotland (and throughout the UK). Recent research commissioned
by Save the Children, provides new data on the extent of severe
child poverty, it's persistence and the overlaps between childhood
poverty and social exclusion.
The research estimates that approximately 80,000
children in Scotland (one million across Britain) live in severe
and persistent poverty and that there has been no change in this
number in recent years.[1]
This suggests that while UK and Scottish Government policies have
succeeded in lifting many children out of poverty, current policies
are having no effect on the very poorest children and their families.
Tackling severe and persistent child poverty is therefore the
biggest challenge in achieving the eradication of child poverty.
This paper outlines what is known about severe
and persistent poverty and suggests possible ways the UK and Scottish
Governments can work together to address the issue and improve
the living standards of the poorest children and their families
in Scotland. A summary of our key policy recommendations is outlined
below.
The UK and Scottish Government should:
1. Incorporate the aim of eliminating severe
child poverty into official targets and ensure that this is monitored.
2. Prioritise resources to those children
and young people living in the most acute poverty, whether they
live in areas of deprivation or not.
3. Increase emphasis on initiatives to address
social exclusion of severely poor children.
4. Work together effectively to compliment
policies, share good practice and ensure consistency in approach.
In addition, the UK Government should:
5. Introduce Child Seasonal Grants, as part
of an urgent review of the Social Fund.
6. Introduce a more flexible benefits system
to improve financial protection for children during times of change
eg. reduce delays in re-starting benefits after temporary work
and improve benefit take-up by families with changing circumstances.
7. Explore ways to improve the financial
protection of families experiencing the unemployment of one or
both parents.
8. Investigate why some families are living
below Income Support levels.
9. Equalise the rate of child benefit for
all children.
10. Commit to spending an extra 0.3% of GDP
more than currently planned on benefits and tax credits.
1. Introduction
1.1 Save the Children welcomes the Scottish
Affairs Committee's, Poverty in Scotland Inquiry, and the opportunity
to submit evidence. This submission focuses on children living
in severe and persistent poverty. It is based on recent research
commissioned by Save the Children, Britain's Poorest Children
(BPC) (2003) and the follow up study Britain's Poorest
Children Revisited (BPCR) (2005), that provides new data on
the extent of severe child poverty, its persistence and the overlaps
between childhood poverty and social exclusion.
1.2 Save the Children, as a child rights
organisation is concerned with the well being of all children,
but in particular with the most vulnerable children. Our work
in the UK with children has shown that poverty and deprivation
is a major issue affecting many children. Our work is underpinned
by the United Nations Convention on the Rights of the Child (UNCRC)
and provides a basis for our approach to child poverty. Article
27 states that:
"State Parties recognise the right of every
child to a standard of living adequate for the child's physical,
mental, spiritual, moral and social development."
1.3 The impact of devolution and diverging
policy decisions cannot be ignored, however it remains true that
addressing child poverty in Scotland is a central issue both for
the reserved government at Westminster and the devolved government
of Scotland. Given this distribution of power within the UK there
is a need for co-ordination at UK, Scottish and community levels,
to ensure consistent and complementary policies to eradicate child
poverty. It is laudable that the Scottish Executive, and UK Government,
are committed to eradicating child poverty within a generation.
Momentum in achieving this goal must be continued. This paper
focuses on areas of policy that the UK Government can address.
INVOLVING CHILDREN
AND YOUNG
PEOPLE IN
THE INQUIRY
1.4 Save the Children urges the Committee
to consider ways of involving children and young people in the
inquiry. A recent consultation carried out by Save the Children
in Scotland with young people highlights the key issues that young
people identify with living in poverty. The young people also
suggest some possible solutions at local and national levels.
The report is attached at Annex A for your information.
2. What is poverty?
2.1 Child poverty needs to be understood
in its broadest sense. This includes access to basic services
and full participation in society, as well as income. Any measure
of child poverty needs to be based not only on income but also
deprivation and social exclusion. BPC and BPCR looked at the persistence
and depth of child poverty as well as overlaps between income,
deprivation and social exclusion. The measures of poverty chosen
to examine the extent of severe child poverty in Britain in our
research were threefold. The first measure is child deprivation—the
child goes without one or more items that the majority of parents
in Britain believes to be necessary because parents cannot afford
to provide the item. For example children may go without a warm
winter coat, properly fitting shoes, toys, school uniform, a holiday
or celebrating their birthday. The second is parent deprivation—the
parent goes without two or more items that the majority of adults
in Britain believes to be necessary, because the parent cannot
afford to provide themselves with the items. Lastly, income poverty
of the household—the child lives in a household that has
less than 40% (less than benefit levels) of median income. For
a family of two adults and two children this means living off
about £178 a week (after housing costs).[2]
Out of this amount the family has to buy all their food, clothes,
heating, other bills and transport, amongst other things. The
longer a family lives in poverty the worse the consequences can
be. Persistent poverty was defined as occurring when children
experienced poverty in three out of the five years for which they
were analysed.
3. The extent of poverty.
3.1 The Government statistics on child poverty
in Scotland are well known and in the public domain. According
to 2004-05 statistics, 240,000 children (23%) live in relative
poverty after housing costs in Scotland. Since 1998-99, there
has been a 34% decrease, (Scottish Households Below Average Incomes,
2004-05). In absolute terms 130,000 (13%) in 2004-05 live in poverty
in Scotland. There are less children living in poverty in Scotland
than elsewhere in the UK. It is as yet unclear why this might
be so as analysis is limited and constricted by lack of transparent
information.
3.2 Little is known about severe poverty
in Scotland. BPC and BPCR estimate relatively large proportions
of children experience severe poverty—80,000 children in
Scotland (one million across Britain). The research also found
that children who experience severe poverty often experience it
as a persistent rather than a temporary condition. A key finding
is that the extent of severe poverty has not changed between 1999
and 2002. The research was unable to make distinctions between
geographical areas or outline particular characteristics of children
living in severe poverty in Scotland. Save the Children believes
that more detailed information is required regarding children
living in severe and persistent poverty in Scotland so that policies
can effectively address this group. Other evidence suggests that
child poverty is unevenly distributed, with Glasgow experiencing
a disproportionately high level.
THE IMPACT
OF LIVING
IN SEVERE
AND PERSISTENT
POVERTY
3.3 Children who live in severe and persistent
poverty do not enjoy the basic living standards that their peers
take for granted. BPC and BPCR found that families living in the
most acute poverty are living on a very low income and are unable
to afford the basic necessities the rest of us take for granted.
For example some children and young people go without a warm winter
coat, properly fitted shoes, adequate housing and heating, access
to leisure activities, such as swimming, and holidays. Out of
this amount the family has to buy all their food, clothes, heating,
other bills and transport, amongst other things. The longer a
family lives in poverty the worse the consequences can be.
3.4 The research also tells us that severe
poverty is not just about low income. It is about lack of access
to basic services and a lack of opportunities for participation
in social activities that are vital for wellbeing. The poorest
tend to do worse at school and have the poorest health—mental
as well as physical. Poverty impacts on family functioning. It
can lead to social isolation and stigmatisation and affects life
chances and aspirations. Experiencing poverty in childhood may
have lifelong consequences. It is a powerful risk factor for outcomes
in adulthood, for example low educational attainment, limited
employment opportunities and poor health. Poverty not only wastes
children and young people's potential but negatively affects communities
and wider Scottish society.
4. Contributing factors
4.1 BPC and BPCR found that living in certain
family types was a risk factor for living in severe poverty. The
family types most at risk of severe poverty are young adults (16
and 17 year olds), large families (three or more children), families
with young children (under 10) and families transitioning into
and out of work. This suggests that an approach to policy is required
at UK and Scottish Government level that further directs resources
and actions towards these family types.
4.2 Additionally, key findings from BPC
and BPCR suggest the following factors contribute to severe and
persistent child poverty:
1. There was a clear association between
receiving Income Support (IS), or Jobseeker's Allowance (JSA)
and experiencing severe poverty—in 1999, 87% of children
in severe poverty were receiving these benefits.
2. Long periods of benefit receipt or no
adult in paid work in a household are associated with persistence
of poverty.
3. At the time of the survey, almost all
non-poor children lived in households with at least one worker
and approximately 70% had two or more workers. This shows that
paid work therefore provides the best protection from poverty.
4. However, the research also found that
over a five year period, 81% of children in persistent and severe
poverty had a worker in the household in at least one year. Therefore
work did not always protect from poverty, particularly in households
where there was only one worker.
5. Changes in the number of adults in paid
work or changes in the main source of income or benefit receipt
is associated with severe poverty. Transitions between having
workers and no workers in the household, and between receiving
and not receiving benefits were associated with children experiencing
persistent and severe poverty. (For example, over a five year
period, 57% of children in persistent and severe poverty and 42%
of those in persistent poverty only had made at least one transition
between receiving and not receiving IS or JSA, compared with only
21% of children who experienced no poverty).
6. Family transitions were also associated
with children experiencing persistent and severe poverty.
7. Social exclusion is associated with severe
poverty. Severely poor children were less likely to have access
to local services such as mother and toddler groups and after-school
clubs, lived in poorer quality housing and experienced more problems
in their local area. For example:
— Severely poor children could not afford
to participate in children's social activities at a much higher
rate (25%) than their non-severe (7%) poor or non-poor counterparts.
— Severely poor children were less likely
to be able to afford, or did not have the access to, local services—11%
compared to 5% of all children.
— Severely poor children were more likely
to experience problems with their local area—35% compared
to 11% of all children and 21% of non-severely poor children.
8. BPCR found that persistence of poverty
rather than severity remains the critical factor in household
social exclusion.
9. Persistence of poverty is associated with
a lack of basic necessities. Children in persistent poverty were
more likely in general to be in households who could not afford
various "necessities", or in households experiencing
various problems with accommodation and local area.
10. The research found that a large proportion
of parents were going without but not allowing their children
to be deprived—when they became severely poor and persistently
poor parents were less able to protect their children—this
is the point where children themselves then go without, for example,
missing meals or being unable to join in social activities with
other children.
11. Persistent poverty is strongly associated
with parents inability to save.
4.3 Other research suggests that one-off
events such as the collapse of a washing machine or a large bill
can drive family finances into crisis. Children and young people
themselves identify a lack of money as being a major factor that
limits their ability to take part in society—both in relation
to the family income as well as their own ability to earn money.
(Save the Children, 2006).
4.4 Save the Children's work in Scotland
also highlights particular groups that are susceptible to poverty,
specifically refugee and asylum seeking children and Gypsy and
Traveller families.Asylum seekers and refugee children in the
UK face unacceptably high levels of poverty and social exclusion
and experience extensive violations of their rights. This is exemplified
by lower levels of support—90% of income support levels—and
problems faced by those children and young people that have become
separated from their families. In Scotland, a consultation conducted
by Save the Children with Glasgow City Council Education with
asylum-seeking children and young people found that many cited
restrictions on play and access to leisure due to lack of money
as a major issue. (Starting Again, Save the Children 2002).
4.5 Gypsy/Traveller children in the UK have
been identified by Save the Children as a particularly vulnerable
group not only in terms of income poverty but particularly service
and participation poverty including lack of access to education
and health services. Limited access to formal education is a key
issue for Gypsy/Traveller children and has implications for their
wider participation.
5. Impact of Government policy on poverty
5.1 At UK level the Labour Government has
emphasised policies designed to encourage parental employment
and to "make work pay" through tax credits and the minimum
wage. The Scottish Executive has complimented these policies by
investing in and supporting vulnerable children and their families.
Amongst other initiatives this has included Closing the Opportunity
Gap (CtOG), Sure Start Scotland, Working for Families Fund and
support for lone parents into further and higher education. While
these policies appear to have been effective in making considerable
progress towards a general decline in child poverty in Scotland,
a significant proportion of children continue to experience severe
and persistent poverty, which in turn is associated with other
manifestations of poverty and social exclusion.
5.2 The Scottish Executive does not have
an overarching strategy for tackling child poverty. Although most
of the targets in CtOG either directly or indirectly relate to
children and their families there is no overall target for improving
the standard of living of children living in poverty. Alongside
this it is unclear what the total level of government spending
(UK and Scottish) on children in Scotland amounts to, and more
specifically how this money is targeted on children who experience
poverty. The Scottish Parliament's Finance Committee found a lack
of transparency in expenditure on child poverty in its inquiry
in 2003. It is therefore difficult to monitor, analyse and evaluate
overall progress. This has led to a lack of scrutiny in tackling
child poverty in Scotland. Save the Children recommends that the
Scottish Parliament undertakes annual review of progress in eliminating
child poverty.
ELIMINATING SEVERE
AND PERSISTENT
CHILD POVERTY
5.3 Save the Children's research suggests
that children and young people from the poorest families remain
a legitimate concern, since current policies appear to have little
impact on their poverty situation. Save the Children therefore
recommends that the eradication of severe and persistent poverty
is incorporated into UK and Scottish Government targets.
5.4 BPCR suggests that the situation is
worsening for children living in families who experience changes
in the number of adults in paid work or changes in the main source
of income. Increased protection is needed for children at times
when households are in transition. The policy approach of the
UK and Scottish Government should consider improving short-term
assistance to cushion the adverse effects of periods of unemployment.
This means introducing a more flexible benefits system and reducing
delays in restarting benefits after temporary work. In Scotland
work should be developed to improve benefit take-up by families
with changing circumstances and further developing work with employers
to improve job security and retention and in work poverty to reduce
the number of transitions in and out of work.
5.5 A recent JRF report, What will it
take to end child poverty? Firing on all cylinders, suggests
that to halve child poverty in the UK (2010 target), which would
mean lifting an extra million children out of poverty, would cost
just over £4 billion extra a year. That is an increase of
0.3% of GDP more than presently planned. The JRF suggest that
extra payments could be targeted directly at children in the poorest
households, with extra payments targeted at children in large
families (one of the groups at highest risk of poverty and severe
poverty). Save the Children supports this recommendation as one
measure that could improve the standard of living of the poorest
families in the UK.
5.6 Our research has shown that large families
are at greater risk of experiencing severe poverty. These family
types should be targeted by policies as they are disproportionately
represented in those experiencing severe poverty. Save the Children
believes that one measure that would assist large families experiencing
severe poverty is equalising child benefit for every child. Save
the Children therefore supports the Child Poverty Action Group's
"Make Child Benefit Count" campaign. To increase the
rate of child benefit for second and subsequent children to the
same amount as for the first/eldest child would have lifted 250,000
children out of poverty and cost £1.7 billion in 2005-06.
There is also a case in its own right for equity in the treatment
of different children in our financial support system. (Child
benefit: fit for the future—CPAG 2006).
5.7 There is also a strong link between
leaving the parental home to independent living and short-term
severe poverty. Current policy is therefore not addressing the
needs of 16 and 17 year olds. The Committee on the Rights of the
Child recommended in 2002 that the UK Government should review
its legislation and policies concerning benefits and social security
for 16 to 18 year olds. Save the Children supports this recommendation
and believes a review is a required.
5.8 Save the Children's research also found
that persistent poverty is strongly associated with parents' inability
to save. Therefore one off events such as household equipment
breaking down or a large heating bill in winter can have a detrimental
effect on a family's income. Social Fund crisis loans are a current
option for families however in the long term a loan exasperates
the problem by reducing weekly benefit payments until the loan
is paid back. Various reports point to the need to reform the
social fund. (including Lump Sums, CPAG 2003).
5.9 Save the Children is therefore proposing
the introduction of Children's Seasonal Grants. These grants would
be made twice a year in the summer and the winter to help families
on the lowest incomes meet additional costs at these times of
year. In the winter, this money is for increased fuel bills and
other items such as warmer clothes and shoes. In the summer this
grant could assist with activities during the summer holidays,
additional food when children are not in receipt of free school
meals and back to school costs. We propose that these grants should
be made to all children living in families claiming out of work
benefits including Income Support, Job Seekers Allowance and Incapacity
Benefit, or in working families claiming the maximum Child Tax
Credit. These families are among the lowest income groups in the
UK.
5.10 Save the Children's research suggests
that children and young people from the poorest families remain
a legitimate concern, since current policies appear to have little
impact on their poverty situation. The current range of policy
solutions is insufficient to alleviate the impact and address
the causes of severe and persistent poverty in Scotland. Save
the Children urges the Scottish Affairs Committee to consider
how the UK Government and Scottish Executive can take all necessary
measures to the "maximum extent of... available resources"
to accelerate the elimination of child poverty in Scotland (Committee
on the Rights of the Child Concluding Observations 2002).
Claire Telfer
Save the Children
October 2006
1 Britain's Poorest Children (2003) and Britain's
Poorest Children Revisited (2005), Centre for Research in Social
Policy and Save the Children. Back
2
2004-05 prices. Back
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