In-work and child poverty: shared statement with Business in the Community

2. Background and Evidence

Eradicating child poverty in Scotland is a national mission and a top priority for the Scottish Government. We are absolutely committed to meeting the 2030 child poverty targets and will do everything in our power to deliver the change needed in the face of challenging economic conditions.

The Scottish Government cannot do this alone. It will take all partners working together to deliver our vision of a Scotland where no child grows up in poverty.

As well as a moral imperative, there is an economic justification for addressing in-work poverty. People are at the heart of successful business and creating diverse workplaces with thriving workers can lead to increases in productivity, profitability, innovation and engagement.

Business in the Community’s In Work Poverty in Scotland: What employers need to know report shows that 14% of working households in Scotland – around 410,000 people – are living in poverty. Scottish Government statistics also show 75% of children in poverty in Scotland live in households where at least one person works. However, only three in 10 senior leaders identify in-work poverty as a business issue, and only a quarter of businesses are taking steps to address it.

Actions employers can take include:

• Adopting the Real Living Wage
• Enhancing parental pay
• Increasing job security
• Giving considerable notice for shifts
• Ensuring equitable access to training and career progression opportunities
• Offering flexible working arrangements
• Training line managers to identify and respond to financial or emotional stress
• Supporting groups such as parents and carers, employees with disabilities, and Black, Asian, Mixed Race, and other ethnically diverse colleagues