Description:

This indicator measures the percentage of children in combined material deprivation (based on a suite of questions in the Family Resources Survey) and low income after housing costs (below 70% of UK median income).

Source of Data:

The data source is the Family Resources Survey (Households Below Average Income dataset). The unit of measurement is the individual.

Households Below Average Income is a National Statistics dataset owned by Department for Work and Pensions.

The indicator is published as part of the annual publication: Poverty and Income Inequality in Scotland. The publication can be accessed through the Income and Poverty website.

The underlying datasets were revised in 2021, and previously published estimates of this measure may have slightly changed.

The measure is also one of four statutory child poverty measures that have set targets specified in the Child Poverty (Scotland) Act 2017.

The measure represents a three-year rolling average.

Definitions:

This measure aims to identify children in families who are unable to afford certain items or activities that are widely considered essential.

Material deprivation is calculated from a suite of questions in the Family Resources Survey (FRS) about whether people can afford to buy certain items, and participate in leisure or social activities. This measure is combined with information about which households have incomes below 70% of median income to create the 'material deprivation and low income combined' indicator.

This indicator aims to provide a measure of children's living standards which, unlike relative and absolute poverty, is not solely based on income. Children are considered to be in combined low income and material deprivation if they live in a household whose income after housing costs is less than 70% of UK median income AND they are considered materially deprived. Otherwise they are not considered to be in combined low income and material deprivation.

The 21 items in the suite of questions used to measure material deprivation are designed to reflect the items and activities people in the UK believe to be necessary. These items are reviewed periodically to ensure the measure remains a relative measure of poverty.

Criteria for Change:

  • Performance is improving if the indicator decreases for three periods in a row by at least 1 percentage point each period.
  • Performance is worsening if the indicator increases for three periods in a row by at least 1 percentage point each period.
  • Otherwise, performance is maintaining.

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