Children living in low income families
About this Indicator
The ‘children living in low income families’ indicator looks at the percentage of children living in relative low income families before housing costs (BHC). A family must have claimed Child Benefit and at least one other household benefit (Universal Credit, tax credits, or Housing Benefit) at any point in the year to be classed as low income.
| Indicator | 2018 Baseline | 2021 Target | 2028 Target |
|---|---|---|---|
| Children living in low income families | 5.7% of children in Shetland live in low income families | No more than 5% of children in Shetland live in low income families | No more than 3% of children in Shetland live in low income families |
Source
When the Plan was issued, the data came from HM Revenue and Customs, 2015 which was published on Statistics.Gov.Scot. This measure is no longer available and so the statistics for children in low income families produced by the Department for Work and Pensions* is now used.
HMRC definition: The percentage of children living in families in receipt of Child Tax Credit whose reported income is less than 60 per cent of the median income or in receipt of Income Support or Income-Based Job Seekers Allowance, divided by the total number of children in the area (determined by Child Benefit data).
DWP definition (relative low income): The percentage of children living in relative low income families before housing costs. Relative low income is defined as a family in low income before housing costs in the reference year. A family must have claimed Child Benefit and at least one other household benefit (Universal Credit, tax credits, or Housing Benefit) at any point in the year to be classed as low income in these statistics. Gross income measure is Before Housing Costs (BHC) and includes contributions from earnings, state support and pensions.
*The statistics are calibrated to the regional Households Below Average Income (HBAI) statistics. HBAI considers households to be living in poverty if they earn less than 60% of the UK median household income.
Most recent data
12.3% of children were living in (relative) low income families in Shetland in 2022-2023. This was a 0.5% increase from the previous year, and is higher than the baseline and the 2021 target.
Why do we monitor this indicator?
Children living in low income families (with less than 60% of median household income) are considered to be living in poverty (Child Poverty Action Group). Child poverty means growing up in families without the resources to “obtain the type of diet, participate in the activities and have the living conditions and amenities” which are the norm in 21st century Scotland (Townsend, 1979).
The effects of child poverty should not be underestimated. Experiencing child poverty can undermine the health, wellbeing and educational attainment of children.
Child Poverty Action Group highlights that:
- Children from higher income families significantly outperform those from low income households at ages 3 and 5 (Joseph Rowntree Foundation)
- Three year olds in households with incomes below £10,000 are two and a half times more likely to suffer chronic illness than children in households with incomes above £52,000 (Hirsch and Spencer, End Child Poverty)
- There are strong links between child poverty and poor mental health
- Children from lower income households are more likely than children from affluent households to experience behavioural and emotional problems (University of Edinburgh).
As well as being harmful to children and families, child poverty has a wider cost for society. A 2013 study estimated that the high levels of child poverty in the UK are currently costing the country at least £29 billion a year. This includes the cost of policy interventions, long term losses to the economy, lower educational attainment and poorer mental and physical health (Donald Hirsch as cited by Child Poverty Action Group).
Poverty in childhood is damaging to children, to their life chances and their communities.
This indicator contributes to monitoring the desired outcomes outlined in the People, Place and Money priorities of the Partnership Plan.
"The number of disadvantaged people and households in Shetland will be considerably reduced as a result of people being enabled and empowered to address the issues they face and helping others to thrive in the same way."