“The biggest single factor is the level of social security available for families."
Scotland has consistently had lower levels of poverty than the UK average for the past 20 years, new official data shows. The figures were compiled by the National newspaper and are based on UK government-accredited statistics. They show that across all age groups, including children, working-age adults, and pensioners, Scotland has fared better than the rest of the UK since 2005.
Child poverty in Scotland has decreased in recent years, falling from 25 percent in 2021 to 23 percent in 2024. In contrast, rates in England and Wales have remained the same at 31 percent since 2021, while the UK average has flatlined at 30 percent since 2018.
John Dickie, director of the Child Poverty Action Group (CPAG) in Scotland, attributes the better performance to Scottish government policies, particularly the Scottish Child Payment, a direct financial support for low-income families.
“The biggest single factor is the level of social security available for families,” Dickie told the National.
He also cited Scotland’s historically higher levels of social housing as a factor in helping reduce poverty, particularly when measuring income after housing costs (AHC).
London and larger families see higher poverty rates
London continues to have one of the highest child poverty rates in the UK, standing at 35 percent in 2024. The high cost of housing is seen as a key contributor. Children in families with disabled members also face a higher risk of poverty.
The data also confirms the growing impact of the two-child benefit cap. The cap, which was introduced by the Tories and kept in place by Labour, restricts financial support to families with more than two children unless in exceptional circumstances.
In 2024, 44 percent of children in families with three or more children were in poverty, compared to 21 percent in single-child households.
Dickie warned that child poverty has long-term consequences, from poor educational attainment to worse health outcomes, which ultimately have economic costs.
A CPAG Scotland report estimates that child poverty costs the UK economy around £40 billion per year, driven by reduced future earnings and increased pressure on public services to help address the damage done to children growing up in poverty.
Pensioner poverty lower in Scotland
Poverty among people of pension age is also consistently lower in Scotland than the UK average. While the UK hit a 20-year low of 13 percent in 2014, Scotland was lower at 12 percent from 2011 to 2016.
Though both have seen increases in recent years, Scotland’s pensioner poverty rate in 2024 remained lower at 15 percent, compared to the UK’s 16 percent.
When looking at all individuals, Scotland again compares favourably. In 2024, 20 percent of people in Scotland were living in relative poverty, compared to 21 percent across the UK. Relative poverty is defined as living on less than 60 percent of median income after housing costs.
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