Bringing Hope, Building Futures: Tackling child poverty delivery plan 2026-2031 – annex 9: Fairer Scotland Duty Impact Assessment (FSDIA)

Key drivers of poverty reduction

The first two delivery plans set out that tackling child poverty most effectively results from the inter-relationship between three key drivers of poverty reduction:

• Increasing income from employment
• Reducing cost of living
• Increasing income from social security and benefits in kind

Evidence shows that this driver approach remains relevant and appropriate.^[3] The third delivery plan will therefore build on this approach and, supported by views gathered from key stakeholders and building on our approach in previous plans, also ensures that the plan supports children and families to thrive.

Additionally, children from lower socio-economic groups remain less likely to have access to informal employment networks and other social capital resources that support transitions into work, contributing to sustained inequalities across generations.

In June 2025, the Scottish Government published an international review of approaches to tackling child poverty. This report – and the series of case studies that underpin it – explores different European countries’ choices and routes to tackling child poverty and how the Scottish Government might learn from them to improve the lives of families. The focus of this report is to:

• Draw out the key factors that have either reduced child poverty levels or kept them consistently low;
• Identify the policies that have been central to achieving those outcomes;
• Explore the extent to which national governments and/or wider factors have, in each case study, influenced these poverty-reduction outcomes; and
• Examine the feasibility of applying these approaches in a Scottish context, accounting for both historical differences and availability of policy levers.

Overall, the report found that rather than there being any single silver bullet, context matters alongside implementing a combination of policies that, taken together, deliver poverty reduction.

Much of the existing evidence in what works to tackle child poverty was reinforced by the study and has informed some of the actions and areas of focus contained in the plan. For example, there is a particular emphasis in the international review on social security and the importance of policies which support parents to enter and remain in the workplace, such as childcare and tailored support through active labour market policies.

No specific gaps in key evidence have been identified which may prevent determination of impact relating to socio-economic disadvantage.

The Scottish Government intends to carefully monitor the progress of the policy package presented in the delivery plan, with individual policy areas also undertaking their own monitoring of impact. No adverse impacts have been identified at this stage, but the Scottish Government will continue to monitor and review this as the policies are implemented and will take action to improve and mitigate any adverse impacts identified in relation to socio-economic disadvantage.

As part of this process, the Scottish Government will continue to produce annual progress reports, outlining the action taken to tackle child poverty in line with the plan. These reports will also detail progress against each of the statutory child poverty targets.

In addition to statistical data and existing research into tackling child poverty from a variety of organisations in Scotland, the Scottish Government conducted an extensive and targeted consultation process in 2025 to inform the themes, areas of intervention, and the actions committed in the plan. Through this engagement, the Scottish Government gathered feedback from community based and national third sector organisations, local authorities, health boards, COSLA, and the Scottish Parliament, in line with the requirements of the Child Poverty (Scotland) Act 2017.

We also engaged with over 90 parents with lived experience of poverty, supported by key partners including the Poverty Alliance, Changing Realities and Migration Policy Scotland, and with over 180 young people, facilitated by a range of partners including Young Scot, Child Poverty Action Group, MCR Pathways, Sistema and Aberlour.

This consultation process was crucial in including the voice of a wide range of people with lived experience of poverty and inequalities resulting from socio-economic disadvantage in the development of the plan. Though there was broad consensus across the consultation and engagement activities that the four strategic themes tested are appropriate, important suggestions for refinement and improvement were also made from these stakeholders, which are set out below.