What do we know about In-Work Poverty? A summary of the evidence

1 Introduction

1.1 The Scottish Government is committed to social justice and equality. The Government Economic Strategy has long recognised the impact of inequality on economic growth. This is incorporated into the National Performance Framework, for example through the Solidarity target on improving income equality.

1.2 'In-work poverty' is of particular concern, as a majority of children and working age adults in poverty now live in households where someone is working.

1.3 This paper summarises what the evidence tells us about the extent and impact of in-work poverty in Scotland. It then identifies three key factors that influence in-work poverty:

• The hourly rate of pay
• The number of hours worked by members of the household (work intensity)
• Income gained and lost through the welfare and tax systems.

1.4 Finally, it presents, for each of these three factors in turn, some key issues arising from the evidence, before drawing some broad conclusions about what needs to be done to tackle in-work poverty.