Social Justice and Social Security Committee

Call for Views on the Future Social Security Spending in Scotland

What is the evidence that spending on devolved social security is effective in supporting those who need it?

In Scotland, it is estimated that around 240,000 children (23%) were living in relative poverty after housing costs in 2021-2024.[1] Latest data released has shown that these levels have remained somewhat stable, with a reduction in poverty levels for some groups of children.[2] However, while poverty rates within Scotland remain unacceptably high, there is evidence that Scotland is outperforming the rest of the UK and has lower levels of child poverty comparatively.

The three-year average poverty rate fell in Scotland from 24% to 23% but has risen in England from 30% to 31%, in Northern Ireland from 23% to 24%, and in Wales from 29% to 31%.[3]

This difference in poverty levels is largely credited to the progress made with the Scottish Child payment.[4]

The Child Disability payment should also be considered within these figures. Households with a disabled person (including a child) within the household are more likely to experience poverty than those without.[5] There is evidence that families in Scotland with a disabled child were better off because of disability benefits. With further threats from the UK Government to disability benefits these protections should be strongly supported.

Even with this data, child poverty persists at stubbornly high levels, and it shows how much more needs to be done to mitigate this. While poverty levels for some groups of children improved slightly, it is noticeable that they are increasing in households where there are 3 or more children.[6]

We are supportive of the Scottish Government commitment to mitigating the effects of the two-child benefit cap for claimants of Universal Credit and see this as a positive step towards protecting the rights of children and young people in Scotland.

Many children would benefit from the mitigation of the two-child cap. The Child Poverty Action Group estimates that scrapping the two-child cap in Scotland could lift 15,000 children out of poverty, while the Scottish Fiscal Commission estimates that 42,000 children in Scotland will benefit. This policy has the potential to protect and promote the rights of children in Scotland by keeping thousands of children and young people out of poverty and reducing the number of those already experiencing it.[7]

Recent modelling from the Fraser of Alllander Institute shows that mitigating the two-child cap will not in itself be enough to meet Scotland’s child poverty targets (this will reduce the gap by 10 percentage points). There are other measures that the Scottish Government must also prioritise on their journey to ending child poverty.[8] We echo the calls of campaigners to increase the Scottish Child payment in addition to mitigating the two-child limit.[9]

Do you think further increasing any particular social security payments would be a cost-effective way of reducing child poverty? If you think that it would, what increases to which payments should be considered?

Article 26 of the UNCRC indicates that Government’s must “take all necessary measures” to guarantee the right of every child to benefit from social security. This means that all available levers should be used to alleviate child poverty. Scotland is not a poor country, poverty is not inevitable. Poverty is a political choice; a consequence of decisions made by the UK and Scottish Governments, and those with the power to affect change. We believe there are decisions which could be made to alleviate child poverty further, taking this action is part of Scotland’s human rights obligations.

The Committee on the Rights of the Child commented in their most recent Concluding Observations on the UK, about their concern for the large number of children living in poverty. They recommended that the UK and Scottish Governments;

‘Develop or strengthen existing policies, with clear targets, measurable indicators and robust monitoring and accountability mechanisms, to end child poverty and ensure that all children have an adequate standard of living, including by increasing social benefits to reflect the rising cost of living and abolishing the two-child limit and benefit cap for social security benefits’[10]

Recently the Council of Europe Commissioner visited the UK and expressed support to the call to ending of the two-child limit, stating that preventing families from enjoying social security entitlements for their third and following children made it an outlier in Europe and beyond. This was consistently identified by the Commissioner’s interlocutors as among the most effective and urgent steps to lift children out of poverty.[11]

The true cost of poverty is very well documented, child poverty results in health inequalities, experiences of homelessness in adulthood and an increase in crime rates, all of these are a cost to wider society. We support the investment in preventative measures to tackle child poverty. An investment must be made in the lives of children from a young age. This not only supports individual children but society as a whole.

A recent statement from Public Health Scotland, the Faculty of Public Health, the Royal Society for Public Health and the Scottish Directors of Public Health stated that preventing child poverty is not only the right thing to do but is also the most cost-effective.[12]

Poverty has a significant impact on both mental and physical health, with worse outcomes for those experiencing poverty. This is of course a significant financial burden on the NHS.

Poverty also means higher costs for essential goods and services in certain areas and creates increased strain on public services meaning higher associated costs to meet the need. Poverty can create cycles of disadvantage, impacting individuals’ ability to access employment and manage their finances effectively

Around 15,500 children in Scotland are experiencing homelessness and around 10,000 children are in temporary accommodation.[13] This is unacceptable. Homelessness, including time spent in unsuitable temporary accommodation has wide-ranging impacts on children’s mental and physical health, affecting their future prospects. Our 2023 report “Sometimes I Feel Like I am in Prison”[14] sets out the impact on children and young people’s rights of spending months or years of their childhood in temporary accommodation; including the impacts on health, development, relationships and education. The trauma of experiencing homelessness can have lasting impact. Children who experienced homelessness are more likely to experience homelessness as an adult.[15]

The Trussel Trust have compiled significant data which demonstrates the cost of ‘hunger and hardship’ in Scotland.[16] They estimate that the total cost to the Scottish economy is around £2.9 billion which is made up of calculations regarding reduced employment and lower tax revenue. The total cost of public services sits at £0.86 billion including £450 million cost to the health system, £190 to education and £215 million on housing. Lifting children and young people out of poverty could significantly impact these figures.

For further information please contact Kate Thompson, Policy Officer at kate.thompson@cypcs.org.uk

[1] Poverty and Income Inequality in Scotland 2021-24

[2] Section 2 – Assessing progress against the targets – Tackling Child Poverty Delivery Plan: progress report 2024-25 – gov.scot

[3] Child poverty statistics – new record high and further breakdowns | CPAG

[4] New child poverty data and updates on methodological changes – Scottish Health Equity Research Unit and UK Poverty 2025: The essential guide to understanding poverty in the UK | Joseph Rowntree Foundation

[5] Child Poverty Rates in Families with a Disabled Adult or Child – Tackling child poverty – third year progress report : annex B – child poverty in families with a disabled adult or child – gov.scot

[6] New child poverty data and updates on methodological changes – Scottish Health Equity Research Unit

[7] Consultation Paper – Mitigation of the two-child cap

[8] Policy packages to meet Scotland’s child poverty targets | FAI

[9] Child poverty campaigners welcome Scottish budget two-child limit mitigation | CPAG

[10] Concluding observations on the combined 6th and 7th periodic reports of the United Kingdom of Great Britain and Northern Ireland :

[11] United Kingdom: tackling poverty is crucial to protect children’s human rights; a number of other areas also call for attention – Commissioner for Human Rights