Scottish Child Payment and the labour market

Client Survey Data

104. Social Security Scotland undertake and publish a client survey^[34] that asks its clients about their views and experiences of the service they received. The results are used to measure how Social Security Scotland is performing and where it can improve.

105. In September 2023 a question was added to the Five Family Payments Client Survey asking about the impact of SCP on people’s employment choices. Responses to this question have not previously been published in other Client Survey outputs.

106. The question was closed-ended with binary response options. However, those who indicated SCP had impacted their employment choices were able to expand in an open-ended text box:

Q. Has receiving Scottish Child Payment had an impact on your, or your partner’s, employment choices?

By employment choices we mean choosing to start or stop working, or choosing to work more, fewer or different hours as a result of receiving Scottish Child Payment. This also includes any changes you or your partner plan to make in the future as a result of receiving Scottish Child Payment.

• Some changes made or planned as a result of receiving Scottish Child Payment
• No changes made or planned as a result of receiving Scottish Child Payment

[If ‘Some changes made or planned…’] Please tell us about those changes, or planned changes, to you or your partner's employment choices.

107. Responses to the follow-up open text question suggest many respondents did not fully understand the initial closed-ended question, therefore the quantitative results of when SCP clients had or had not made or planned changes as a result of SCP have been deemed unreliable and are not included in this paper.

108. While a number of the open-text responses do provide an insight into the impact of SCP on employment choices, the overall number of these responses is small (n=59), and many of them are short statements that require interpretation. As such, the findings cannot be generalised to all SCP recipients, and are unlikely to give a full understanding of the impact of SCP on employment choices.

Qualitative findings: increased labour market activity

109. Respondents stated they had engaged in labour market activity in the following ways since receiving SCP:

• Started a new job search
• Increased working hours
• Continued existing job search
• Started a new job
• Stayed in current job
• Started new education course
• Increased study time

110. A number of respondents simply stated the change they (or their partner) had made without providing additional information on how SCP had influenced the decision, or why they made it;

“I am now looking for part time work and going back into employment.”

“I am able to start looking into going back into teaching again.”

“Job search.”

111. However, the other responses did provide some additional information. Three main themes emerged from these responses:

Engagement in labour market activity: insufficient income despite SCP

112. Several respondents said they (or their partners) were looking for a job or had increased hours because their income did not meet the cost of living. A small number of these responses indicated SCP was helping, but they were still struggling overall.

“Had to look into a second job as the universal credits amount is poor and sporadic. The Scottish payment has remained the same and does help but the other benefit is too low.”

“The payment gives some relief to the day to day expenses, I am looking at working for myself or improving my living standards.”

“Now we receive this support but at the same time we have to pay electricity, and sometimes it's not enough, so we have to look for a job.”

“Try to get full time work as inflation is at its peak. Gas and electricity are crazy prices. Everything has gone up in price and living expenses doesn't meet that.”

“With little I get my partner now needs to work more hours to cover all bills plus trying to get our baby things that is needed which means my partner never spends time with his baby or myself due to little payment we get plus bills.”

“I am needing to go find work, as a single parent I don’t feel as though my best start card helps with the cost of baby milk etc as 1 tub is £15 and lasts a week that’s not including nappies etc.”

Engagement in labour market activity: SCP helped with associated costs

113. A number of respondents said they (or their partner) engaged in labour market activity because SCP had helped with costs of doing so. For example, one respondent said SCP had helped them buy a car enabling them to return to work. Two respondents said SCP helped to pay for childcare allowing them to work full time hours.

“I was able to afford to put my child to childcare (plus the universal credit payments). The universal credit payment, together with the Scottish child payment and the child benefit now cover about half of the monthly bill for full time childcare, which meant that for me it was worth working full time and gave me financial freedom.”

“We were both able to continue working full time as we have put this money towards childcare for my children.”

114. The other responses indicated the general financial support provided by SCP had enabled them (or their partner) to increase working hours, start an education course, or increase study time. Two of these responses show how SCP can be associated with both engaging in - and decreasing - labour market activity at the same time, for the same person or family.

“I can be at home to look after my children now. SCP covers a good part of my salary so it makes more sense for me to free up a job for someone and to look after my children during their crucial development years and my husband is able to increase his working hours now because I am at home.”

“I'm a full time student nurse and my partner is not working due to several (sic) disability. Thanks to the payments I could reduce shifts in nursing bank (on the top of my academical responsibilities) and focus more on my children and studies.”

Engagement in labour market activity: SCP provided general support

115. Other respondents explained how SCP had supported them with an existing job search e.g. by providing a sense of motivation, dignity, or peace of mind.

“The intention to find a job and find employment has not changed. The desire to work has increased, as an incentive to live better.”

“It did not impact my partner (or mine) employment choices but it gave us more dignity to keep looking for a new job.”

“I am still trying to earn more but with receiving the payment we have a bit more peace of mind.”

Qualitative findings: decreased labour market activity

116. Respondents stated they had decreased labour market activity in the following ways since receiving SCP:

• Reduced working hours
• Planned or considered reduced working hours
• Left job or second job
• Planned longer maternity leave
• Chose not to work

The two predominant and overlapping themes that emerged was that respondents (or their partners) decreased labour market activity: (1) due to the financial support they received from SCP, and (2) to spend more time with their child or children.

Decreased labour market activity: financial support from SCP

117. Most respondents who said or implied they (or their partners) decreased labour market activity, said it was because of the financial help received from SCP. Others were less clear in their response, but it is still likely they were able to make a change due to the financial support SCP provided. In these cases, respondents typically made statements like the following:

“One job instead of two.”

“After maternity leave I will be going back to work 3 days.”

Decreased labour market activity: to spend time with children

118. A key theme that emerged was respondents (or their partners) decreased labour market activity so that they could spend more time with their child or children. In several of these cases, the responses made clear this was a temporary change. Some respondents, including one with a disabled child, stated (or implied) decreasing their labour market activity was beneficial for their children.

“It will allow me longer maternity leave to spend with my baby and older children.”

“I decided to take my full 1 year maternity leave and stay at home and look after my baby for 3 unpaid months. However, returning to work in November.”

“Nowadays I don’t do as much overtime and that means I can spend more time with my kids. I have also put them in clubs.”

“Receiving child tax, good start grant and Scottish Child benefits made me decide to leave my 9 to 5 job so I can spend quality time with my child in the first 2 years, connect with my child and making sure that my child is reaching the expected development milestones.”

“I have been able to reduce my hours at work from 37.5 to 28 hrs a week. My son now receives CDP so I am able to be at home for him more often.”

119. A small number of respondents felt their (or their partner’s) decreased labour market activity was a good thing for their own wellbeing or overall family dynamics.

“I can only work part time as a nurse due to childcare and being single. This payment has taken a lot of stress off of me trying to squeeze in extra shifts. I still do just as many extra shifts but I don’t need to worry so much if I can’t due to childcare reasons. This positively impacts my mental health as money impacts how I feel a lot of the time.”

“SCP has assisted my partner in not having to work more antisocial hours that would have impacted on our family time/life.”

Decreased labour market activity: miscellaneous responses

120. Three respondents implied they decreased labour market activity due to a lack of help with, or ability to afford, childcare. However, it was not clear how (or whether) SCP influenced their decision. One respondent indicated that while they had no immediate plans to decrease labour market activity due to SCP, the payments “possibly could allow me to work part time due to my health.”

“I am a single parent and I have decided to go back to work part time as I don’t have help with child care.”

“I have decided to stay at home with my children until they are entitled to funded nursery hours.”

“When my maternity ends, I plan to reduce my pre-pregnancy Full Time working hours to part time so I may continue to support my very high needs baby, poorly with GERD, at home rather than relying on very expensive childcare, less supportive of my sons needs with the endless staff and budget cuts experienced in the childcare sector.”

Conclusion and limitations

121. In summary, with regards to engaging in labour market activity;

• SCP contributes to a range of associated behaviours, such as starting a new job, looking for a new job, taking on more hours, or starting an education course.
• One reason people make these decisions is because the income/government support they receive, including SCP, is not enough to meet living costs – although some recipients specifically say the payment does help.
• For others, SCP helps to cover costs (e.g. childcare) which allows them to make these decisions, or provides them with general support (e.g. motivation, peace of mind) while they try to access the labour market.

122. With regards to decreasing labour market activity;

• SCP contributes to a range of associated behaviours, such as reducing working hours, leaving a job, or taking longer maternity leave. Many indicate that these changes are temporary.
• Generally, the reason people make these decisions is because the financial support provided by SCP enables them to do so. However, there are cases where people decrease labour market activity due to issues with childcare - not necessarily because they want to.
• The main reason people say they (or their partner) have decreased labour market activity is so they can spend more time with their children, which many view as being beneficial for their child’s development, their family dynamics, or their own wellbeing.

123. The qualitative data obtained in the Client Survey gives a key insight into the complex ways SCP can impact people’s employment choices. However, the overall sample of relevant and usable responses (n=59) is quite small, and many of these are short answers missing context and/or require some interpretation.

124. Given these limitations, the following steps could be taken in future social research projects on SCP and employment choices, and have been factored into the forthcoming evaluation of SCP;

• Develop a new survey question (or questions) which are easier to understand. Any questions should take into consideration the qualitative responses described in this paper, which give a direct insight into how SCP interacts with labour market decisions.
• Ask for more detail on employment choices in qualitative interviews. This will make it possible to understand more about the specific influence of SCP in decisions, and the general context around them.