Welfare reform - impact on households with children: report

A report that presents analysis of the impacts of UK Government reform on households with children in Scotland.

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Appendix D: Illustrative households

The illustrative households set out below are based on the following broad assumptions, designed to provide a reasonable illustration of how the reforms might impact on typical households in Scotland. They do not provide a comprehensive view, and few (if any) households in Scotland will have the precise characteristics set out below.

  • Working single mothers work 19 hours per week, on average[33]
  • The minimum wage will be uprated at the same rate as other wages by 2023 (3.9%). This wage is used for the lone parent and unemployed households only[34]
  • The median salary in Scotland will have increased by 9% by 2023 compared with 2021. [35]
  • Rent is based on Local Housing Allowance rates for Stirling[36]
  • Other household characteristics have been chosen for simplicity or analytical purposes
  Baseline
Lone parent Three children Unemployed Disabled adult Disabled child
Equivalised household income, AHC, baseline 12,000 10,000 6,500 14,400 13,200
Rent 500 940 650 650 650
Salary basis Minimum wage Average salary - Average salary Average salary
Adult 1 Age 24 45 45 45 45
Hours worked per week 19 37.5 0 37.5 37.5
Earnings per month 810 2880 0 2880 2880
Work history 6 27 0 27 27
Adult 2 Age   45 45 45 45
Hours worked per week   0 0 0 0
Earnings per month   0 0 0 0
Work history   0 0 15 0
Child 1 Age Age Age 1 16 16 16 16
Child 2   12 12 12 12
Child 3   8      
Manual benefits       £388 per month DLA /PIP £388 per month DLA /PIP
  Baseline + 10 hours work
Lone parent Three children Unemployed Disabled adult Disabled child
Equivalised household income, AHC, baseline 13,400 11,600 8,700 15,300 14,500
Rent 500 940 650 650 650
Salary basis Minimum wage Average salary Average salary Average salary Average salary
Adult 1 Age 24 45 45 45 45
Hours worked per week 29 37.5 10 37.5 37.5
Earnings per month 1240 2880 430 2880 2880
Work history 6 27 27 27 27
Adult 2 Age   45 45 45 45
Hours worked per week   10 0 10 10
Earnings per month   780 0 430 780
Work history   27 0 15 27
Child 1 Age 1 16 16 16 16
Child 2 Age   12 12 12 12
Child 3 Age   8      
Manual benefits       £388 per month DLA /PIP £388 per month DLA /PIP

Contact

Email: spencer.thompson@gov.scot

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