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.
Footnotes
1 Poverty rates are presented using three-year averages to provide more robust and reliable estimates.
2 Scottish Government (2023) Rural Scotland Data Dashboard.
3 Scottish Government (2019) Local level Brexit vulnerabilities in Scotland: Brexit Vulnerabilities Index (BVI).
4 Scottish Government (2020) Coronavirus (COVID-19): framework for decision making – supporting evidence.
5 Scottish Government (2025) Understanding the Cost of Living Crisis in Scotland.
6 The Royal Society of Edinburgh (2023) The cost of living: impact on rural communities in Scotland.
7 Department for Work and Pensions (2025). Children in low income families: local area statistics: background information and methodology (UK Government).
8 Department for Work and Pensions (2025). Family Resources Survey (UK Government).
9 Scottish Government (n.d.) School education statistics.
10 Scottish Government (n.d.) About the Scottish Household Survey.
11 Scottish Government (n.d.) Scottish House Condition Survey.
12 Poverty estimates with confidence intervals are not presented in this report. The estimates are provided to show indicative trends over time and should not be considered official statistics. Where relevant, references have been provided to the official statistics with confidence intervals.
13 Scottish Fuel Poverty Advisory Panel, NHS Health Boards and Health and Social Care Partnerships (Orkney, Shetland, Western Isles), Rural Stakeholder Group.
14 Expert by experience panel members from Aberdeenshire and Argyll and Bute, coordinated through the Poverty Alliance’s ‘Taking Action on Rural Poverty’ project.
15 Scottish Government (2022) Scottish Government Urban Rural Classification 2020.
16 Scottish Government (2018) Understanding the Scottish rural economy: research paper.
17 Scottish Government (2023) Scottish island regions 2023: overview.
18 The Scottish Government Urban Rural Classification (SGURC) was used where possible to define urban and rural areas across Scotland. Using the 6-fold SGURC, most Scottish islands are defined as ‘remote rural’ in their entirety, with a smaller number of larger islands containing settlements classified as ‘remote small towns’.
19 Where the Scottish Government urban rural classification could not be applied, the alternative Rural and Environmental Science and Analytical Services (RESAS) classification was used which allocates local authorities according to their level of rurality in four categories. Within this classification, some Scottish islands fall within the ‘islands and remote’ category (e.g. those within Argyll and Bute, Shetland Islands, Orkney Islands, and Comhairle nan Eilean Siar), while others are part of local authorities classified as ‘mainly rural’ (e.g. Highland Council and North Ayrshire Council).
20 The Children in Low Income Families dataset only provides data from the financial year ending 2015 onwards.
21 Relative poverty is a commonly used measure that considers someone to be in poverty if their income is below 60% of the UK median income. Unless otherwise stated, relative poverty estimates are presented after taking into consideration housing costs.
22 Scottish Government (2025) Poverty and income inequality in Scotland 2021-24.
23 Rates are more volatile due to the use of two-year averages instead of 3-year averages as a result of impacts of the Covid-19 pandemic on the survey in combination with small sample sizes when stratifying by the 6-fold Scottish Government Urban Rural Classification.
24 Within the 6-fold Scottish Government Urban Rural Classification, most Scottish islands are defined as ‘remote rural’ in their entirety, with a smaller number of larger islands containing settlements classified as ‘remote small towns’.
25 Relative severe poverty considers someone to be in severe poverty if their income is below 50% of the UK median income. Unless otherwise stated, severe relative poverty estimates are presented after taking into consideration housing costs.
26 Rates are more volatile due to the use of two-year averages instead of 3-year averages as a result of impacts of the Covid-19 pandemic on the survey in combination with small sample sizes.
27 Scottish Child Payment (SCP) was only introduced in 2021. Presented findings will not have fully captured the potential impacts of SCP on child poverty rates considering the time window covered in combination with limitations around capturing SCP receipt as part of household income used to estimate the rate of child poverty.
28 Severe relative child poverty considers a child to be in severe relative poverty if their household income is below 50% of the UK median income. Unless otherwise stated, severe relative child poverty estimates are presented after taking into consideration housing costs.
29 Relative low income is defined as families with an equivalised gross income below 60% of the UK median before housing costs. Equivalisation considers differences in household size and composition to make income comparison across households more meaningful.
30 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. This report uses CiLIF statistics based on the pre-March 2025 methodology, before recent methodological updates were implemented.
31 Within the Rural and Environmental Science and Analytical Services classification, some Scottish islands fall within the ‘islands and remote’ category (e.g. those within Argyll and Bute, Shetland Islands, Orkney Islands, and Comhairle nan Eilean Siar), while others are part of local authorities classified as ‘mainly rural’ (e.g. Highland Council and North Ayrshire Council).
32 A child is defined as an individual aged under 16.
33 The Children in Low Income Families (CiLIF) dataset is only available from the financial year 2015 onwards due to limitations in the coverage in the data source underpinning CiLIF.
34 Absolute low income is defined as families with an equivalised gross income below 60% of the UK median before housing costs in the year 2010/2011. Equivalisation considers differences in household size and composition to make income comparison across households more meaningful.
35 A family who, combined, have been in employment or self-employment for over 26 weeks of the year.
36 An adult who is claiming Child Benefit and other DWP/HMRC household benefits or Tax Credits, and dependent children. In addition, the parent/guardian had no partnerships at any point in the year.
37 Scotland’s Census (2024) Scotland’s Census 2022 – Demography and migration.
38 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. The methodology used to estimate fuel poverty trends between 2013-2019 matches the methodology of the 2019 SHCS key findings report and not subsequent releases. See the 2022 SHCS methodology notes, section 1.5 for a comparison between methodologies.
39 Scottish Government (2023) Scottish House Condition Survey: 2023 key findings.
40 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 20% 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.
41 Scottish Government (2023) Scottish House Condition Survey: 2023 key findings.
42 Heating satisfaction is measured in the Scottish Household Survey as follows: ‘During the winter months, do you generally find that your heating keeps you warm enough at home or not? Response options: never; only some of the time; yes, always; don’t know. Heating dissatisfaction was defined as households reporting that their heating kept them never or only some of the time warm enough at home during the winter months.
43 Managing financially is measured in the Scottish Household Survey as follows: ‘How are you and your household managing financially these days?’. Response options: manage very well; manage quite well; get by alright; don’t manage very well; have some financial difficulties; are in deep financial trouble; don’t know.
44 The transport affordability question was newly added to the Scottish Household Survey in 2021. Transport affordability was measured as follows: ‘How easy or difficult do you find it to afford your individual travel costs’? Response options: very easy; fairly easy; neither easy nor difficult; fairly difficult; very difficult; don’t know.
45 The childcare affordability question was newly added to the Scottish Household Survey in 2018. Childcare affordability was measured as follows: ‘How easy or difficult do you find it to afford the childcare your household requires’? Response options: very easy; easy; neither easy nor difficult; difficult; very difficult.
46 Scottish Government (n.d.) Early education and care.
47 Transport and childcare affordability are only relevant if services are available and meet the requirements of local communities.
48 Household food security questions were newly added to the Family Resources Survey in 2019-20. They ask about whether people were worried about running out of food, had to reduce meal sizes or skip meals.
49 Data on free school meal registrations are collected on an annual basis in the Pupil Census since 2018. A pupil is considered registered for free school meals regardless of whether their eligibility is under national eligibility criteria or local initiatives.
50 A stepwise expansion of free school meal registrations was implemented among primary schools between 2015 and 2022 and as such data are only presented on pupils in primary year 6-7 and secondary year 1-6.
51 Housing affordability defined as the median housing cost to net unequivalised income ratio.
52 National Records of Scotland (2021) NRS Urban Rural Dashboard.
53 Contains one adult of working-age and one of pensionable age and no children, or two adults of pensionable age and no children.
54 Contains one adult of pensionable age (65 years) and no children.
55 Contains one adult of working-age and no children.
56 Contains two adults of working-age and no children.
57 Contains two adults of any age and one or two children.
58 Proportion of households where the highest income household is in employment or self-employed.
59 The highest income householder is the person in the household who has the highest personal income from all sources.
60 Office for National Statistics (2023) Business Register and Employment Survey.
61 Scottish Government (2019) Social tenants in Scotland 2017.
62 Owner occupied includes households who own their home outright and households who have a mortgage.
63 Social rented includes households who rent their home from either the local authority or housing association.
64 Household income after taxes and deductions, including benefits and tax credits.
65 Housing costs include the following: rent (gross of housing benefit); water rates; mortgage interest payments; structural insurance premiums; ground rent and service charges.
66 Creaney, R and Wooldridge T (2024) Scotland’s Rural and Island Housing: Stakeholder Insights (James Hutton Institute).
67 Creaney, R and Wooldridge T (2024) Scotland’s rural and island housing: a briefing of key policies, challenges and opportunities (James Hutton Institute).
68 Thomson, SG et al. (2023). Rural and Islands Report: 2023 - An Insights Report (SRUC).
69 Scottish Government (2019) Short-term-lets – impact on communities: research.
70 Airbnb does not constitute the entire short-term lets market and landlords may use other platforms to advertise their properties.
71 Scottish Government (2024) Scottish Islands Survey 2023: main findings report.
72 Scottish Government (2024) Private Sector Rent Statistics, Scotland, 2010 to 2024.
73 Registers of Scotland (2024) Residential property sales in Scottish Island regions.
74 Scottish Government (2023) Scottish island regions 2023: overview.
75 Scottish Government (2023) SHCS 2023 Chapter 01 Key Attributes of the Scottish Housing Stock tables and figures – Table KA3a and KA3b.
76 Scottish Affairs Committee (2024) Cost of living: impact on rural communities in Scotland (UK Government).
77 The Scottish Fuel Poverty Advisory Panel (2024) Annual Report 2023 - 2024.
78 Scottish Government (2025) Scottish House Condition Survey: 2023 Key Findings.
79 Department for Energy Security and Net Zero (2024) Official Statistics: Subnational estimates of properties not connected to the gas network 2015 to 2023 (last accessed: 10 June 2025).
80 Scottish Government (2021) Tackling fuel poverty in Scotland: a strategic approach.
81 The Poverty Alliance (2024) Taking Action on Rural Poverty: Aberdeenshire – Initial Scoping Work.
82 The Poverty Alliance (2024) Taking Action on Rural Poverty: Argyll and Bute – Initial Scoping Work.
83 Singer Hobbs, M and Frost S (2024) Wheels of change: Promoting fair and green transport in rural Scotland (IPPR).
84 Cross Party Group in the Scottish Parliament on Poverty (2024) Inquiry into poverty in rural Scotland (Poverty Alliance).
85 Krakowiak, W and Burn-Murdoch A (2023) SPICe Spotlight - Bus accessibility, affordability and reliance across Scotland.
86 Transport Scotland (n.d.) Key issues and evidence – Health Inequalities Impact Assessment.
87 Turas (2025) NHS Scotland Workforce – official workforce statistics 31 March 2025 (last accessed 1 June 2025).
88 Public Health Scotland (2025) Population estimates – Scottish Health and Social Care data (last accessed 1 June 2025).
89 Benefit take-up refers to the extent to which people who are eligible for social security benefits actually claim and receive them.
90 Corlett, A (2019) The benefit freeze has ended, but erosion of the social security safety net continues (Resolution Foundation).
91 Scottish Government (2021) Poverty in rural Scotland: evidence review.
92 Scottish Government (2024) Take up rates of Scottish benefits 2024.
93 Bailey N, Bramley G and Gannon M (2016) Poverty and Social exclusion in urban and rural areas of Scotland – Poverty and Social Exclusion -UK Working Paper (University of Glasgow and Heriot Watt University).
94 Scottish Government (2019) Local level Brexit vulnerabilities in Scotland: Brexit Vulnerabilities Index (BVI).
95 A Brexit Vulnerability Index was created at a data zone level informed by risk indicators associated with Brexit such as access to services, share of the population of working-age, workers in Brexit sensitive industries and receipt of EU funding.
96 Defined as being within the 20% most vulnerable communities in Scotland.
97 Scottish Government (2022) Best Start, Bright Futures Tackling Child Poverty Delivery Plan 2022-2026.
98 Scottish Government (2025) Tackling child poverty priority families overview.
99 The Scottish Fuel Poverty Advisory Panel (2024) The Scottish Fuel Poverty Advisory Panel Newsletter 2024.
100 Scottish Government (2022) Best Start, Bright Futures Tackling Child Poverty Delivery Plan 2022-2026.
101 UK Government (2025) Department for Work and Pensions. Below Average Resources: Developing a new poverty measure.
102 National Records of Scotland (2025) The Future of Scotland’s Census – Recommendation from National Records of Scotland.
Contact
Email: ocspa@gov.scot