Poverty and Income Inequality in Scotland 2011/12

Poverty and income inequality in Scotland: 2011-12

This publication presents annual estimates of the percentage and number of children, working age adults and pensioners living in low income households in Scotland, and the distribution of household income across Scotland. The estimates are used to monitor progress towards UK and Scottish Government targets to reduce poverty and income inequality. The data published for the first time here are for the financial year April 2011 to March 2012. The latest figures cover a period where the Scottish economy and wider UK economy were both showing little GDP growth and average earnings fell in real terms. These figures include the impact of some changes to benefits resulting from welfare reform, but precede the more significant changes implemented in April 2013.

This publication includes changes to the methodology compared with previous publications:

1. This publication presents a change in reference year for absolute poverty. In order to measure absolute low income in line with the Child Poverty Act 2010, absolute low incomes will be measured against the UK median income in 2010/11 adjusted for inflation, instead of the 1998/99 median income as in previous publications. This results in an absolute poverty threshold in 2011/12 of £264 per week net income compared to the previous threshold of £231 (in 2011/12 prices). Further information on the change is available in Annex 3 or at DWP Statistical notice

2. This publication includes a break in the series for child material deprivation. Four new questions about additional material deprivation items for children were introduced into the 2010/11 Family Resources Survey (FRS) and from 2011/12 four questions from the original suite were removed. This creates a break in the series. Further information on the change is available in Annex 2 or at: DWP Statistical Notice

3. Pensioners are defined as all adults above the state pension age. From 6^th April 2010, the qualifying age for women to receive the state pension has been gradually increasing. For example, pensionable age at 30 June 2011 was 65 for men and approximately 60 years and 238 days for women. Therefore the age groups covered by the analysis of working age adults and pensioners will change in this publication to incorporate the changes to women's qualifying state pension age. There has been no change to the qualifying state pension age for men. Further information is available at: DWP Statistical Notice