Embargo: for publication after 00.01hrs Monday 29th November 2004
Poverty falling for Scotland’s families and pensioners, but rising among childless adults

Poverty rates among pensioners and families with children in Scotland are falling – but the proportion of childless adults who live on low incomes is on the increase. Working-age adults who have no dependent children now account for one in three Scottish people living in income poverty, according to independent monitoring by the New Policy Institute for the Joseph Rowntree Foundation.

Monitoring poverty and social exclusion in Scotland 2004 analyses trends over the past five years using 40 different indicators. These include income, employment, education, health, housing and crime. The new report builds on its predecessor, published two years ago, and has a particular focus on variations in the indicators between different local authority areas in Scotland.

The number of indicators showing improvement (11) is more than double the number that have grown worse (5). For example, average Standard grade attainment in secondary schools has increased and fewer 9-year-olds in deprived areas are failing to reach minimum standards in reading, writing and maths. The number of pregnancies among girls under 16 has fallen since 1996 and the number of burglaries has more than halved in ten years. However, the researchers identify four major issues where there is continuing concern:

• Working age adults without dependent children: The report shows that 1.1 million people in Scotland (22 per cent) in 2002/3 were living in low-income households (defined as less than 60 per cent of median income, after deducting housing costs). The percentage of children and pensioners in low-income households has been falling, but the rate among working-age adults without dependent children has been rising. Looking at households where no working-age adult has a job, the report finds that three out of four are single people or couples without dependent children. Out-of-work benefits for this group have stayed unchanged in real terms for a decade, whereas benefits for pensioners and families have risen by a third since 1998.
• Economically inactive people who want paid work: Around 150,000 people of working age in Scotland are officially unemployed, which is 50,000 fewer than in 1995. However, there are another 200,000 people defined as ‘economically inactive’, who say they would like to work. This number has only declined modestly since 1995. Four-fifths of long-term claimants of out of work benefits are sick or disabled and two-thirds are aged 45 and over.
• Low paid work: Although work reduces the risk of poverty, it does not eliminate it. Thus, two out of five Scottish people living in poor working-age households include at least one adult who is in paid work. The report also finds that one in three Scottish workers are paid less than £6.50 an hour, the majority of them women. Low pay is especially prevalent among part-time workers and among staff working in the distribution, hotel and restaurant sectors. Half the working population aged 25 to 50 without Higher grade qualifications earn less than £6.50 an hour.
• Poor health: Scotland’s health, measured by reductions in the number of premature deaths, has been improving. The number of deaths among 55- to 64- year-olds has declined by a quarter among men, and a fifth among women in the past decade. Even so, premature death rates remain about a third higher than those in England and Wales. Only four out of the 32 Scottish local authority areas have premature death rates lower than the English and Welsh average.

Guy Palmer, Director of the New Policy Institute and co-author of the report, said: “Recent years have seen substantial reductions in child poverty in Scotland and in unemployment. But there has been much less success in reducing the number of people who are economically inactive but want paid work, as well as long-term worklessness due to sickness and disability, and poverty among childless working-age households. There is a large overlap between these groups and they present a major challenge for future policy.”

Deprivation across Scotland
Looking at the geographical patterns of deprivation across Scotland by local authority area, the report finds that:

• The highest concentrations of households in poverty are found in Glasgow, Dundee, Inverclyde and West Dunbartonshire. The lowest concentrations are in Shetland, Orkney, Moray and Eilean Siar (the Western Isles).
• The pattern for low wages is different. The areas with the highest proportions of low-paid workers are Scottish Borders, Moray, West Dunbartonshire and Dumfries and Galloway. Glasgow is well down the list of local authorities, with Aberdeen and Edinburgh near the bottom of the table.
• Glasgow has the highest levels of children living in low-income families, low-income pensioners, overcrowding, drug misuse, working-age adults with limiting long-standing illnesses and premature death rates.
• Dundee has the highest rates of under-age pregnancy rates and poor mental health (measured through the number of drug prescriptions).
• Edinburgh’s position is mixed. On levels of drug misuse, overcrowding and children living in low-income families it is among the worst areas. But on measures of working-age adults with limiting long-standing illnesses, premature deaths and poor mental health, it is one of the best.
• Aberdeen also varies. It has among the highest rates of drug misuse and under-age pregnancy, but among the lowest incidence of low pay and limiting, long-standing illnesses.
• Other authorities which are of concern on particular indicators include North Lanarkshire (premature deaths, low-income pensioners), South Lanarkshire (provision of home care), North Ayrshire (lack of work), East Ayrshire (under-age pregnancies), Aberdeenshire (provision of home care), and Renfrewshire (jobs lost in production industries).

Peter Kenway, co-author of the report, said: “Our analysis shows that it is not always west central Scotland that has the greatest problems. The extent of low pay in parts of the south and north of the country is the most striking example of this. In tackling particular problems, it is important to examine the particular geographic patterns associated with that problem rather than simply assuming that ‘the standard pattern’ applies.”

Note to Editors
Monitoring poverty and social exclusion in Scotland 2004 by Guy Palmer, Jane Carr and Peter Kenway is published by the Joseph Rowntree Foundation and available from York Publishing Services, 64 Hallfield Road, York YO31 7ZQ (01904 430033), price £16.95 plus £2.00 p&p.

The report and findings summary are available by clicking the links in the left margin.

For further information, contact:

Guy Palmer (author) 020-7721 8421
Peter Kenway (author) 020-7721 8421

Issued by David Utting, Associate Director (Public Affairs) 020-7278 9665 / david.utting@jrf.org.uk