Poverty and Income Inequality in Scotland 2014-17

Key trends

This publication presents three year averaged estimates of the percentage of people, children, working age adults and pensioners living in low income households in Scotland, and other statistics on household income and income inequality. Previously, we reported on single-year estimates, see page 2 for more information. The estimates are used to monitor progress in reducing poverty and income inequality.

• Poverty rates appear to be rising slowly.
• Income inequality appears to be rising after a decline following the recession.
• Median income has reached highest level since reporting began.

Relative poverty
Poverty rates slowly rising

19% of people in Scotland were living in relative poverty after housing costs in 2014-17. Overall, poverty rates seem to be rising slowly.

Income inequality
Palma inequality measure increasing

The Palma coefficient measures income inequality. The top 10% of the population in Scotland had 24% more income in 2014-17 than the bottom 40% combined. This compares to 21% more income in 2013-16.

Household income
Overall household income rising

Median income before housing costs in Scotland in 2014-17 was £485 a week. Compared to 2013-17, this is an increase by 2%, equivalent to £10 a week.