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STV News
4 days ago
- Business
- STV News
Achieving child poverty target could cost £920m a year in benefits, report warns
Scotland could meet its 2030 child poverty target—but a report has warned that this could cost £920m a year in benefits, with 'significant additional' spending also required to increase the number of parents in work. Chris Birt, associate director at the Joseph Rowntree Foundation (JRF) in Scotland, said its research shows: 'Holyrood has the chance to prove that it's up to the task of not just setting lofty ambitions, but straining every sinew to deliver on them.' PA Media The Joseph Rowntree Foundation examined the costs and impacts of different measures that could be introduced to tackle child poverty (Jane Barlow/PA). The think tank said there would be financial benefits from getting more parents into employment, and from helping those with jobs to work more hours. Doing this could increase tax revenues to the Scottish Government by £410m, it said, while cutting spending on universal credit by around £500 million a year. With 240,000 children living in poverty in Scotland, the JRF produced what it described as a 'toolkit' for parties running in the 2026 Holyrood election, setting out the impact different policies could have towards meeting the target of having less than 10% of youngsters in relative poverty by 2030–31. The think tank said it had 'deliberately not prescribed an exact course of action' but had instead 'shown the required scale of action needed'. To meet the target, the report said the next Parliament would need to 'lift around 100,000 children out of poverty' – adding this would 'require a laser-focused prioritisation'. The Meeting the Moment paper stresses that none of the measures it considered would achieve the target on their own. 'Even a near quadrupling of the SCP (Scottish child payment) to £100 a week per child at an annual cost of £1.14 billion would see a child poverty rate three percentage points above the targets,' it said. However it found increasing the SCP – which is given to low-income families for every child they have under the age of 16 – to £40 a week would have 'the best poverty reduction impact per pound'. This would cost an extra £190m a year – but on its own would only bring the child poverty rate down to 18%. However the research found that by supplementing the benefit for families with babies and for single parents, and by boosting take-up to 100% of those eligible, when combined with other measures – such as boosting employment among parents in poverty – 90,000 youngsters could be lifted out of poverty, meeting the 10% target. The report said: 'This would cost an additional £920m in targeted child benefits in Scotland (as well as other costs associated with increasing employment). 'It would also increase tax revenues by £410m because of increased parental employment. 'Universal credit expenditure could also fall by £500m as demand for it falls due to higher incomes through work.' Mr Birt said: 'Whoever forms the next Scottish Government has the chance to change what it means to grow up in Scotland. 'To do so, they must meet the Parliament's child poverty targets. Not only for Scotland's children and their futures, but to show those who often feel overlooked and ignored by politics that trust can be rebuilt through actions. 'This analysis gives each political party a detailed map to help them reach a Scotland free from child poverty. They may choose to take different routes to get there. But whichever route they take will require every ounce of determination and demand action at scale. 'The actions of Westminster governments may help, or hinder, but Holyrood has the chance to prove that it's up to the task of not just setting lofty ambitions, but straining every sinew to deliver on them.' Social Justice Secretary Shirley-Anne Somerville said: 'I welcome this report from the Joseph Rowntree Foundation. 'We are absolutely committed to meeting the 2030 child poverty targets and thanks to the actions we are already taking, families in the poorest 10% of households are estimated to be £2,600 a year better off in 2025-26 and this value is projected to grow to an average of £3,700 a year by 2029-30. 'However our policies are having to work harder in the current economic context and as a result of decisions taken by the UK Government, such as keeping the two-child limit on Universal Credit which are holding back Scotland's progress. 'While the Joseph Rowntree Foundation predict child poverty will rise in other parts of the UK by 2029, they highlight that policies such as our Scottish Child Payment, and our commitment to mitigate the two-child limit, are behind Scotland 'bucking the trend'. 'We will publish our third child poverty delivery plan by the end of March 2026, setting out the actions to be taken between 2026-2031 to meet the 2030 targets. We will continue working closely with stakeholders, including the Joseph Rowntree Foundation, to shape that plan.' Get all the latest news from around the country Follow STV News Scan the QR code on your mobile device for all the latest news from around the country
Scotsman
4 days ago
- Business
- Scotsman
Achieving child poverty target 'could cost £920m a year in benefits'
'Laser-focused prioritisation' required by next Parliament to lift 100,000 children out of poverty Sign up to our daily newsletter – Regular news stories and round-ups from around Scotland direct to your inbox Sign up Thank you for signing up! Did you know with a Digital Subscription to The Scotsman, you can get unlimited access to the website including our premium content, as well as benefiting from fewer ads, loyalty rewards and much more. Learn More Sorry, there seem to be some issues. Please try again later. Submitting... Scotland could meet its 2030 child poverty target - but a report has warned this could cost £920 million a year in benefits, with "significant additional" spending also required to increase the number of parents in work. Chris Birt, associate director at the Joseph Rowntree Foundation (JRF) in Scotland , said its research shows: "Holyrood has the chance to prove that it's up to the task of not just setting lofty ambitions, but straining every sinew to deliver on them." Advertisement Hide Ad Advertisement Hide Ad The think tank said there would be financial benefits from getting more parents into employment, and from helping those with jobs to work more hours. Doing this could increase tax revenues to the Scottish Government by £410 million, it said, while cutting spending on universal credit by around £500 million a year. Scotland could meet its 2030 child poverty target - but a report has warned this could cost £920 million a year in benefits, with "significant additional" spending also required to increase the number of parents in work | PA With 240,000 children living in poverty in Scotland, the JRF produced what it described as a "toolkit" for parties running in the 2026 Holyrood election, setting out the impact different policies could have towards meeting the target of having less than 10 per cent of youngsters in relative poverty by 2030-31. The think tank said it had "deliberately not prescribed an exact course of action" but had instead "shown the required scale of action needed". Advertisement Hide Ad Advertisement Hide Ad To meet the target, the report said the next Parliament would need to "lift around 100,000 children out of poverty" - adding this would "require a laser-focused prioritisation". The Meeting the Moment paper stresses that none of the measures it considered would achieve the target on their own. "Even a near quadrupling of the SCP (Scottish child payment) to £100 a week per child at an annual cost of £1.14 billion would see a child poverty rate three percentage points above the targets," it said. However it found increasing the SCP - which is given to low-income families for every child they have under the age of 16 - to £40 a week would have "the best poverty reduction impact per pound". Advertisement Hide Ad Advertisement Hide Ad This would cost an extra £190 million a year - but on its own would only bring the child poverty rate down to 18 per cent. However the research found that by supplementing the benefit for families with babies and for single parents, and by boosting take-up to 100 per cent of those eligible, when combined with other measures - such as boosting employment among parents in poverty - 90,000 youngsters could be lifted out of poverty, meeting the 10 per cent target. Tax revenues boosted by parental employment The report said: "This would cost an additional £920 million in targeted child benefits in Scotland (as well as other costs associated with increasing employment). "It would also increase tax revenues by £410 million because of increased parental employment. Advertisement Hide Ad Advertisement Hide Ad "Universal credit expenditure could also fall by £500 million as demand for it falls due to higher incomes through work." Mr Birt said: "Whoever forms the next Scottish Government has the chance to change what it means to grow up in Scotland . "To do so, they must meet the Parliament's child poverty targets. Not only for Scotland's children and their futures, but to show those who often feel overlooked and ignored by politics that trust can be rebuilt through actions. "This analysis gives each political party a detailed map to help them reach a Scotland free from child poverty. They may choose to take different routes to get there. But whichever route they take will require every ounce of determination and demand action at scale. Advertisement Hide Ad Advertisement Hide Ad "The actions of Westminster governments may help, or hinder, but Holyrood has the chance to prove that it's up to the task of not just setting lofty ambitions, but straining every sinew to deliver on them." Social Justice Secretary Shirley-Anne Somerville said: "I welcome this report from the Joseph Rowntree Foundation . "We are absolutely committed to meeting the 2030 child poverty targets and thanks to the actions we are already taking, families in the poorest 10 per cent of households are estimated to be £2,600 a year better off in 2025-26 and this value is projected to grow to an average of £3,700 a year by 2029-30. "However our policies are having to work harder in the current economic context and as a result of decisions taken by the UK Government, such as keeping the two-child limit on Universal Credit which are holding back Scotland's progress. Advertisement Hide Ad Advertisement Hide Ad "While the Joseph Rowntree Foundation predict child poverty will rise in other parts of the UK by 2029, they highlight that policies such as our Scottish Child Payment, and our commitment to mitigate the two-child limit, are behind Scotland 'bucking the trend'.
STV News
28-04-2025
- Politics
- STV News
Politicians urged to ‘up their game' as ‘80,000 children in very deep poverty'
Politicians are being urged to 'radically up their game' as a report revealed that 80,000 children in Scotland are living in 'very deep poverty'. Research by the Joseph Rowntree Foundation (JRF) found that while overall child poverty in Scotland has fallen, an increasing proportion of impoverished youngsters are in what is classed as 'very deep poverty'. It estimated that in affected households where there are two parents and two children, they would need an additional £1,100 a month to lift them above the poverty line. While First Minister John Swinney has made eradicating child poverty a key priority for his government, the report said that with some 80,000 youngsters in very deep poverty, this was 'around the population of children aged 16 or under in Edinburgh'. The JRF report said: 'That one child and their family has to get by on such low incomes is a tragedy. That 80,000 do should enrage and empower our politicians and decision-makers to vanish this hardship from our country.' It urged politicians to act, saying: 'As we approach the next Scottish election, parties aspiring to government must radically up their game to help the 80,000 children in very deep poverty.' The report shows that overall child poverty in Scotland has fallen from 32% in 1994–97 to 24% in 2020–23. But it said that 'the risk of deep and very deep poverty has changed less over the period, meaning that a higher proportion of children living in poverty now are in very deep poverty than they were in 1994–97'. In 1994–97, it said that one in five children in poverty were living in very deep poverty – but added that this had now risen, with one in three children in poverty classed as being in 'very deep poverty'. The Scottish Government has already missed its interim target for reducing child poverty, and the JRF warned that meeting the overall goal of cutting child poverty to 10% by 2030 will be 'almost impossible' without action to help those suffering the most. The think tank warned action would need to be significant, saying: 'Solutions that raise incomes marginally are not going to lift this third of children in poverty out of poverty.' In its study, the JRF noted that more than two-fifths of children in very deep poverty are living in a household where no one is in work, while more than a third are in a household 'pulled into very deep poverty by housing costs'. JRF associate director for Scotland Chris Birt said: 'If this happened overnight, it would be an emergency. The outcry should be the same even if we've got here after 30 years. 'Politicians want to rebuild trust in politics so they must take action for these children that are being left behind. And take that action at scale. 'We know the drivers of poverty in Scotland are poor work, poor housing and even poorer social security. You can't pull one of these levers only and expect the substantial impact we need to see. Progress on all three will truly give children in Scotland a more hopeful future.' As well as demanding action from politicians at Holyrood, he said Westminster could play a 'massive role' in dealing with the problem. Mr Birt said: 'Whichever party wins the next Holyrood election will carry the heavy burden of meeting the Scottish Parliament's child poverty targets. 'Succeeding against the target will deliver a Scotland where all our children are able to flourish, and trust in our political institutions can be restored. 'The UK Government must also not sit idly by – it can also play a massive role in improving the lives of children in Scotland and across the UK. They must also keep up their end of the bargain.' Social justice secretary Shirley-Anne Somerville insisted Scottish Government policies to tackle child poverty are working – but said these policies were 'having to work harder than ever to make a difference, against a backdrop of a continuing cost-of-living crisis, rising energy costs and UK Government decision making'. Ms Somerville added: 'Recently published statistics show that the proportion of children living in relative poverty has reduced while the proportion in absolute poverty has also fallen, with the annual figure the lowest in 30 years. 'We are committed to doing all that we can, with the 2025-26 Scottish Budget prioritising action to eradicate child poverty, including through investment in breakfast clubs, employability support and to develop the systems to mitigate the two-child limit. 'On average, households with children in the poorest 10% of households are estimated to be £2,600 a year better off in 2025-26 as a result of Scottish Government policies, with this value projected to grow to an average of £3,700 a year by 2029-30. 'While JRF predict child poverty will rise in other parts of the UK by 2029, they highlight that policies such as our Scottish Child Payment, and our commitment to mitigate the two-child limit, 'are behind Scotland bucking the trend'. 'But decisions taken by successive UK governments are holding us back, and the spring statement will only make things worse. The DWP's own figures show that proposed welfare cuts will drive 50,000 more children into poverty.' Get all the latest news from around the country Follow STV News Scan the QR code on your mobile device for all the latest news from around the country
