Understanding the changing nature and context of poverty in Scottish rural and island communities since 2010
Analysis of existing data to compare poverty trends and potential drivers across Scottish rural and island communities from 2010, with policy and research implications.
Appendix
Appendix 1. Overview of data sources, poverty (proxy) outcome measures and geographical indicators used.
Name of data source
Children in Low Income Families (CiLIF)
Description
Provision of information on children aged under 16 living in absolute and relative low income families by local area across the UK.
Poverty (proxy) outcome measure and sub-groups of interest
Proportion of children living in absolute and relative low income families before housing costs
Variation by family type (i.e. lone parent, couple with children) and work status (i.e. in-work, out-of-work)
Geographical indicator
4-fold RESAS classification
Name of data source
Family Resources Survey (FRS)
Description
Annual survey of private households in the UK provides information on living standards based on household disposable income measures for a particular financial year. This survey is used to inform official poverty estimates in Scotland.
Poverty (proxy) outcome measure and sub-groups of interest
Proportion of individuals, children, working-age adults and pensioners in absolute or relative poverty after housing costs
Variation by child poverty priority family types* (i.e. any or disability), housing tenure and household composition (i.e. single adult)
In-work relative poverty after housing costs
Food security
Housing affordability ratio
Geographical indicator
2-6 fold SGURC
Name of data source
Pupil Census (Scotland)
Description
The annual school Pupil Census collects information on school pupil characteristics in Scotland.
Poverty (proxy) outcome measure and sub-groups of interest
Free school meal registrations in primary (P6-P7) and secondary (S1-S6) schools
Geographical indicator
6-fold SGURC
Name of data source
Scottish Household Survey (SHS)
Description
Annual cross-sectional household survey that provides information on the characteristics, attitudes and behaviours of Scotland’s people.
Poverty (proxy) outcome measure and sub-groups of interest
Perceived household finances
Heating satisfaction
Perceived affordability of childcare costs
Perceived affordability of transport costs
Employment status of highest income householder
Housing tenure
Household composition
Geographical indicator
3-6 fold SGURC
4-fold RESAS classification
Scottish island regions
Name of data source
Scottish House Condition Survey (SHCS)
Description
Annual cross-sectional component of the SHS that provides information on housing and the physical conditions of dwellings in Scotland.
Poverty (proxy) outcome measure and sub-groups of interest
(Extreme) Fuel poverty
Geographical indicator
6-fold SGURC
CiLIF: Children in Low Income Families. FRS: Family Resources Survey. RESAS: Rural and Environment Science and Analytical Services Division. SGURC: Scottish Government Urban Rural Classification. SHCS: Scottish House Condition Survey. SHS: Scottish Household Survey.
*Six priority family types identified as being at highest risk of child poverty: lone parent families, minority ethnic families, families with a disabled adult or child, families with a younger mother (under 25 years of age), families with a child under one and larger families (3 or more children).
Appendix 2. Definition of key poverty (proxy) outcome measures and supporting definitions.
Terminology
Absolute poverty
Definition
Absolute poverty relates to equivalised net disposable household income below 60% of inflation adjusted UK median income in a given base year and can be calculated before or after housing costs. People are in absolute poverty if they live in a household whose equivalised income is below this amount.
Additional info
Measure demonstrates whether those in the lowest income households are seeing their incomes rise in real terms.
For most data available the base year is 2011 (e.g. currently latest available Census data but will be updated soon to 2022).
Absolute poverty statistics fall if low income households see their income rise faster than inflation.
Link
Poverty in Scotland: methodology
Poverty and Income Inequality in Scotland 2021-24
Terminology
Before and After Housing Costs
Definition
Housing costs are made up of rent; water rates, community water charges and council water charges; mortgage interest payments; structural insurance premiums (for owner occupiers); and ground rent and service charges. Housing costs do not include variable costs of running a house such as gas, electricity and home insurance.
Additional info
Many measures can be calculated before and after housing costs (BHC versus AHC) and this is important as it has an impact on the number of people being identified as poor.
Link
Poverty in Scotland: methodology
Terminology
Child poverty
Definition
In general, reported as to whether children live in a household that experiences relative or absolute poverty (before or after housing costs).
Additional info
The Child Poverty (Scotland) Act 2017 sets its targets regarding child poverty after housing costs. The Act outlines four headline income-based measures of poverty namely relative poverty, absolute poverty, combined material deprivation and low income and persistent poverty.
Link
Child poverty - Poverty and social justice
Terminology
Equivalised net disposable household income
Definition
Equivalised income is household income which is adjusted by using an equivalence scale to take into account the size and composition of the household.
Additional info
Equivalisation acknowledges that a larger household needs more income than a smaller household, but it overlooks that other circumstances may require additional expenditure (e.g. disability, childcare, transport).
Link
Poverty in Scotland: methodology
Poverty and Income Inequality in Scotland 2021-24
Terminology
Fuel poverty (as set out in the Fuel Poverty (Scotland) Act 2019))
Definition
As set out in section 3 of the Fuel Poverty (Targets, Definition and Strategy) (Scotland) Act, a household is in fuel poverty if, in order to maintain a satisfactory heating regime, total fuel costs necessary for the home are more than 10% of the household’s adjusted net income (after housing costs), and if after deducting fuel costs, benefits received for a care need or disability and childcare costs, the household’s remaining adjusted net income is insufficient to maintain an acceptable standard of living. The remaining adjusted net income must be at least 90% of the UK Minimum Income Standard (MIS) to be considered an acceptable standard of living, with an additional amount added for households in remote rural, remote small town and island (RRRSTI) areas. Extreme fuel poverty follows the same definition except that a household would have to spend more than 20% of its adjusted net income (after housing costs) on total fuel costs to maintain a satisfactory heating regime.
Additional info
Uplifts are to be applied to the Minimum Income Standard for households in rural and island communities to take into account the higher costs of living.
Link
Fuel Poverty - Scottish House Condition Survey: 2023 Key Findings
Terminology
In-work poverty
Definition
In-work poverty relates to households that are living in relative poverty (in general after housing costs) where at least one person is in paid employment (part-time or full-time) or self-employed.
Additional info
Working poverty is of particular concern in tackling poverty given that the majority of the working-age population in relative poverty now live in working households.
Limitation is that the different reasons why someone maybe in in-work poverty are not available as statistics cannot be broken down (i.e. low wages, low hours).
Link
What do we know about in-work poverty in Scotland?
Terminology
Relative low income families
Definition
Relative low income is defined as families with an equivalised gross income below 60% of the UK median before housing costs. Families are included in the Children in Low Income Families (CiLIF) dataset if one adult is claiming Child Benefit and other DWP and HMRC household benefits (i.e. Universal Credit, Housing Benefit) and Tax Credits at any given point in the year of interest.
Additional info
This is the definition applied in the CiLIF dataset and as such in this report, although different definitions of low income exist.
Link
Background information and methodology: Children in low income families: local area statistics
Terminology
Relative poverty
Definition
Relative poverty relates to household income below 60% of UK median income in the same year and can be calculated before or after housing costs. People are in relative poverty if they live in a household whose equivalised income is below this amount.
Additional info
Measure demonstrates whether those in the lowest income households are keeping pace with the growth of incomes in the economy as a whole.
Relative poverty statistics fall if income growth at the lower end of the income distribution is greater than overall income growth.
Link
Poverty in Scotland: methodology
Poverty and Income Inequality in Scotland 2021-24
Terminology
Severe relative poverty
Definition
Severe relative poverty relates to household income below 50% of the UK median income and can be calculated before or after housing costs.
Additional info
Poverty is experienced differently by individuals, and one key difference relates to the depth of poverty people experience.
Link
Terminology
Persistent poverty
Definition
Persistent poverty relates to living in a household with an annual income that is less than 60% of the annual UK median in at least three years out of four. This can be calculated before or after housing costs.
Additional info
As persistent poverty uses relative poverty as its measure, it indicates whether those in the lowest income households are keeping pace with the growth of incomes in the economy as a whole over a longer period of time.
Link
Persistent Poverty in Scotland 2010-2020
Appendix 3. Overview of key Scottish Government geographical classifications used in the report.
Terminology
6-fold Scottish Government Urban Rural Classification
Definition
1. Large Urban Areas – Settlements of 125,000 or more people.
2. Other Urban Areas – Settlements of 10,000 to 124,999 people.
3. Accessible Small Towns – Settlements of 3,000 to 9,999 people and within 30 minute drive of a settlement of 10,000 or more.
4. Remote Small Towns – Settlements of 3,000 to 9,999 people and with a drive time of over 30 minutes to a settlement of 10,000 or more.
5. Accessible Rural – Areas with a population of less than 3,000 people, and within a 30 minutes’ drive time of a settlement of 10,000 or more.
6. Remote Rural Areas – Areas with a population of less than 3,000 people, and with a drive time of over 30 minutes to a settlement of 10,000 or more.
Link
Scottish Government Urban Rural Classification 2020
Terminology
3-fold Scottish Government Urban Rural Classification
Definition
1. Remote Rural – Areas with a population of less than 3,000 people and with a drive time of over 30 minutes to a settlement of 10,000 or more.
2. Accessible Rural – Areas with a population of less than 3,000 people and within 30 minutes’ drive of a settlement of 10,000 or more.
3. Rest of Scotland.
Link
Scottish Government Urban Rural Classification 2020
Terminology
2-fold Scottish Government Urban Rural Classification
Definition
1. Urban – Areas with a population of 3,000 people or more.
2. Rural – Areas with a population of fewer than 3,000 people.
Link
Scottish Government Urban Rural Classification 2020
Terminology
RESAS classification of local authorities
Definition
1. Islands and remote
2. Mainly rural
3. Urban with substantial rural areas
4. Larger cities
Link
Annex 2: Urban and Rural Definitions - Understanding the Scottish rural economy: research paper
Terminology
Scottish Island Regions
Definition
1. Argyll Islands
2. Arran, Bute and the Cumbraes
3. Highland Islands
4. Lewis and Harris, Great Bernera and Scalpay
5. Orkney – Mainland and connected
6. Orkney – Outer islands
7. Shetland – Mainland and connected
8. Shetland – Outer islands
9. The Uists and Barra islands
Link
Scottish island regions 2023: overview
How to access background or source data
The data collected for this :
☐ are available in more detail through Scottish Neighbourhood Statistics
☐ are available via an alternative route
☒ may be made available on request, subject to consideration of legal and ethical factors. Please contact OCSPA@gov.scot for further information.
☐ cannot be made available by Scottish Government for further analysis as Scottish Government is not the data controller.
Contact
Email: ocspa@gov.scot