National Islands Plan: Fairer Scotland Duty

Summary of Evidence

Understanding the changing nature and context of poverty in Scottish rural and island communities since 2010 - gov.scot

Scottish Islands Data Dashboard by RESAS - Infogram

Supporting documents - Scottish Islands Data Overview (2025) - gov.scot

National Islands Plan review: consultation analysis - gov.scot

National Islands Plan - Draft - gov.scot

Supporting documents - Scottish Islands Survey 2023: main findings report - gov.scot

Census 2022 - Island Groups - data.gov.uk

People on Low Incomes

Island communities face a higher overall cost of living than much of mainland Scotland, including higher fuel, transport and basic goods costs, which disproportionately affects low-income households. These extra costs mean that a low income stretches less far on islands than in other areas.

The Scottish Island Survey shows many islanders, particularly younger adults and households, report financial pressure and struggle to manage financially, despite islands generally not ranking among the most deprived areas in Scottish Index of Multiple Deprivation (SIMD).

Islanders have lower median pay and potentially fewer high-paid local jobs, making low incomes more prevalent in relative terms and harder to escape through local wages alone. Higher costs combined with relatively low incomes can increase poverty exposure, even where wider measures like SIMD might under-report them due to how deprivation is measured.

People in Deprived Areas

SIMD data shows no island authority area is among Scotland’s most deprived 20%, but this does not mean no households are experiencing deprivation, as household-level hardship exists independently of area rankings. SIMD data indicates that around two thirds of those experiencing poverty do not live in the most deprived areas. Area-based indices can understate deprivation in islands due to small populations and dispersed settlement patterns, meaning that pockets of hardship may not be captured as “deprived areas” in standard statistics. Some localities within island authorities (specific parts of the Western Isles) do show higher poverty and worse outcomes than others. Cost-of-living and access to services serve as cross-cutting factors generating deprivation even where broader area measures appear relatively favourable.

People With No/Low Wealth or in Debt

Island households are exposed to higher basic living costs (fuel, transport, freight) which can aggravate low-wealth situations and increase reliance on debt or credit to cover essentials, although specific debt statistics are limited.

Higher fuel poverty levels (compared with national averages) mean many families pay a greater share of income on heating and energy, effectively reducing available wealth and savings.

Although detailed data on debt is not widely available, the combination of higher costs of living and modest local income levels suggests households with low or no wealth are more vulnerable to financial shocks.

People in Material Deprivation

Island households can experience challenges accessing essential goods and services due to location and connectivity, which can constitute material deprivation even if traditional deprivation indicators (like SIMD) do not flag the area.

Higher costs for fuel, heating, transport and freight amplify the risk that households cannot afford basic consumption or assets needed for a decent standard of living.

Surveys indicate that financial pressures are more salient among younger islanders, likely reflecting material hardships in specific sub-groups.

People From Different Social Classes (Socio-Economic Background Differences)

Formal data on social class (as defined by occupational class or socio-economic background) are generally scarce in island-specific reporting, due to small sample sizes and measurement challenges. However, underlying structural disadvantages are implied where opportunity gaps exist, for example in access to quality jobs, training, education and services, which are all linked to socio-economic background.

Living in higher-cost island communities with fewer high-wage jobs can structurally disadvantage working-class residents compared with those with middle-class backgrounds or resources to move for work.

These structural dynamics likely contribute to differences in economic mobility, opportunities and long-term outcomes, even if not neatly captured in class-based statistics in current island data. The National Islands Plan proposes to address inequalities of outcomes caused by socio-economic disadvantage in Scotland’s island communities, including people on low incomes, those in deprived areas, those with limited wealth or in debt, people experiencing material deprivation, and inequities linked to socio-economic background