Bringing Hope, Building Futures: Tackling child poverty delivery plan 2026-2031 – annex 4: Child Poverty Measurement Framework (2026 update)

Rationale for changes

Overall, the measurement framework remains consistent from previous versions. The main change is that we are now including a new separate set of indicators on long term consequences of poverty. This is to ensure that we monitor any potential long term impacts of the Delivery Plans and repercussions on progress achieved.

This section explains whether, and why, indicators were changed or updated and the rationale for new inclusions.

Driver: Income from employment

There is no change to indicators around the driver ‘Income from Employment’. The reasons for retaining these are set out below.

The hourly pay and hours worked indicators have been included in the framework since the first Plan. These indictors continue to provide a clear indication of household income and work intensity across households. Sample sizes in the Family Resources Survey (FRS), from which this data is drawn, have reduced over time. However, combining survey data over 3-year periods allows sufficiently robust data for inclusion.

The indicators covering households with no paid employment, those experiencing underemployment (hours based) and skill underutilisation, households where the parents have no or low qualifications, and the indicator for parents in contractually secure employment are all derived from the Office for National Statistics (ONS) Annual Population Survey (APS) which combined results from the Labour Force Survey (LFS) with local LFS boosts to obtain a larger sample for smaller groups of the Scottish population. As with the FRS, the APS has also experienced a reduction in sample sizes in recent years.

Given the reduction in sample sizes in recent years which have impacted the quality and provision of estimates for Scotland from the APS, Scottish Government made the decision to discontinue funding for the local LFS boost for Scotland which took effect from the January 2026 data collection onwards. In the meantime, a quality assessment reassured us that indicators based on the APS data are still appropriate for the time being. To ensure continued access to high-quality labour market statistics, the Scottish Government is actively exploring alternative data sources, including administrative financial metadata and other public and private sector data. ONS are also developing the Transformed Labour Force Survey (TLFS) which aims to improve the quality of labour market survey data. Once we have more information on the TLFS, we may review these indicators again.

Driver of Poverty: Cost of living

Most indicators on “Cost of Living” remain consistent, though there is a marked change. That is: the replacement of “unmanageable debt” and “high-cost credit” with a new indicator on “how well households are managing financially”; and the removal of “internet access”.

Key indicators on financial security thus far included “the use of high cost credit”, “the proportion of households with no savings” and “the proportion of households experiencing unmanageable debt”. While these indicators have provided a picture of the financial situation faced by low income households there have been issues with the data for the high cost credit and unmanageable debt indicators.

In the case of high cost credit, we have only been able to provide trend data for households with children as this question was only asked of a sub sample of overall respondents. There have also been issues with data availability for unmanageable debt. This indicator is derived from the Wealth and Assets Survey (WAS) for which the next update is due in three years.

Instead, we are including a new indicator on “how well families feel they are managing financially”. This new indicator, alongside the current indicator on savings, will provide a picture of financial wellbeing for low income households with children.

This review determined that the internet access indicator was no longer useful in demonstrating differences in digital inclusion for low income households. This is because internet access is very high across the board, with little difference in accessibility across household types. Research on a Scottish Minimum Digital Living Standard (MDLS) demonstrates that digital inclusion goes beyond simply having internet access in the home and includes access to appropriate digital devices, connectivity and skills to unlock the potential of digital for both employment and cost of living support. Work on the MDLS is at a relatively early stage but Scottish Government analysts will keep up to date with developments as this may be considered for inclusion in the future.

The indicators included on childcare (childcare costs, childcare affordability, childcare availability during term time and in the school holidays), transport (affordability and costs), food costs and housing were all still considered relevant and appropriate for inclusion. The indicator on food security has been moved from the cost of living section of the framework to appear in the new section on the long-term consequences of poverty outlined below.

Driver: Income from social security and benefits in-kind

Most indicators on ‘Income from social security and benefits in-kind’ are still deemed appropriate and relevant. The only suggested change is the replacement of ‘the value of the Scottish Child Payment’ with a new indicator on ‘the value of the Five Family Payments’ (which includes the Scottish Child Payment).

While the Scottish Child Payment is an important flagship benefit in addressing child poverty it is part of a larger benefit package for families. The Five Family Payments include: the Scottish Child Payment, Best Start Foods, and three Best Start Grants (Pregnancy and Baby Payment; Early Learning Payment; School Age Payment). Now that all these payments have been rolled out we can include an indicator on the value of all Five Family Payments. The new indicator will be based on an example family with two parents and one newborn baby.