Children living in low income families
About this Indicator
This indicator measures the percentage of children aged 0–15 living in relative low income families before housing costs (BHC).
Relative low income is defined as living in a household with income below 60% of the UK median income in a given year.
The data is based on the Department for Work and Pensions (DWP) Children in Low Income Families statistics, which use administrative data on earnings, benefits and tax credits to estimate household income at local authority level.
These statistics are calibrated to the Households Below Average Income (HBAI) dataset, which provides the UK’s official estimates of low income.
The way this data is calculated changed from 2022 onwards. This means figures before and after this point are not directly comparable and should be interpreted with caution.
| 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 first developed, this indicator used data from HM Revenue and Customs (HMRC).
This dataset is no longer available, and the indicator is now based on the Department for Work and Pensions (DWP) Children in Low Income Families statistics, which provide annual estimates at local authority level.
Most recent data
7.7% of children were living in (relative) low-income families in Shetland in 2024-25. This was a 0.5% increase from the previous year. Why do we monitor this indicator?
This indicator provides one measure of child poverty at local level.
Children living in households with less than 60% of median income are commonly considered to be living in poverty (Child Poverty Action Group). Child poverty is not having enough money to buy the things your household needs and to participate fully in society (CPAG 2025).
(CPAG 2025).
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 (Hirsch 2013).
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."