The Social Security (Miscellaneous Amendment and Transitional Provision) (Scotland) Regulations 2022: child rights and wellbeing impact assessment

7. What evidence have you used to inform your assessment?

In conducting this Child Rights and Wellbeing Impact Assessment, demographic information played an important role in the evidence base building on the work already undertaken as part of the first Tackling Child Poverty Delivery Plan^[21] and more broadly on child poverty. We considered Scottish Government and UK Government data; stakeholder reports and insights; and consulted those with lived experience of the benefits system through user research.

Tackling child poverty is a Scottish Government priority with 24% of Scotland's children (240,000 children each year) living in relative poverty after housing costs in 2017-2020^[22]. Prior to the outbreak of COVID-19, it was predicted that if no further action were taken to tackle child poverty one in three children in Scotland would grow up in poverty by 2030, damaging society and the economy.^[23] The impact of COVID-19 on child poverty levels is still largely unknown, particularly the long term effects on families and our economy, however we know that the impacts have been felt most acutely by the most disadvantaged in our society.

Children in low income households tend to experience a range of disadvantages including lower educational attainment and poorer health. Poverty can have lasting impacts long into adulthood such as increased risk of homelessness, lower earning potential and greater likelihood of limiting illness. It is difficult to disentangle the effect of poverty from other factors associated with low income that may affect children's outcomes. However, the growing evidence in developed economies suggests that gaining additional income has positive causal effects on health, behavioural development and educational attainment for children in households at the lower end of income distribution^[24]. This means the additional funding provided via the FFP is expected to have a positive impact on children's overall wellbeing.

We have also carried out an interim evaluation of SCP and BSG and an evaluation of BSF, with an external contractor carrying out interviews with a number of clients and gatekeeper organisations on their experiences of the payment to date.

The interim evaluation for BSG^[25] found that it was viewed very positively by interviewed recipients and that most of the grant was spent on items families needed at the key transitional stages of birth, nursery and school. Receiving the BSG allowed parents and carers to buy what they needed for the children when they needed it. For some families, delays in purchasing items would have had a negative impact. For example, interviews with recipients indicated that a lack of BSG payment would have "resulted in families not being able to go outside as quickly without access to a buggy, children having to wear old or cheaper shoes that hurt their feet, or sleep in a bed or cot that they had outgrown."

The evaluation also suggested that BSG provided additional income to families at key transitional points in child's life that they could use to buy a range of essential items and various services for children for whom BSG was claimed and sometimes also for their siblings. BSG enabled a number of families to take part in a range of social opportunities that they would have otherwise been unable to participate in. It also enabled parents and carers to obtain items and services that would allow their children to take part in more physical activity either individually or socially with the family. Some recipients reported being able to travel further and experience memorable days out with the whole family. BSG helped some children and their families to take part in educational opportunities, too. This involved visits to museums or purchasing educational toys and other items for use at home.

Qualitative data from the commissioned research suggested that BSG is likely to generate positive feelings and behaviours among children and their families, while reducing negative ones, which could potentially translate into improved health and well-being for both children and their families. For children, their parents and carers reported positive feelings such as sense of excitement in the children as they were able to pick items for school. They also reported better bonding between themselves and their children as well as among siblings in families with more than one child thanks to purchases of items or services that enabled such bonding.

Although BSG is fully rolled-out, its impacts can only be fully assessed after at least 5 years from the roll-out by which time eligible families will have had a chance to receive multiple payments for the same child. We intend to commission a further evaluation to report in 2025 on these families' experiences.

The evaluation of BSF^[26] describes a number of positive findings. They show the benefit helps people buy a greater quantity (and quality) of healthy foods than they could without the benefit. Payments also support healthier shopping habits and meal planning. For example, recipients report purchasing healthier snacks for their children, and some experiment with new healthy recipes, without worrying about wasting money or food.

BSFs may be contributing to better health and wellbeing for children. Recipients report observing their children eating more and a greater variety of fruits and vegetables and feeling positive that they can provide their children with more nutritious foods. It has also reduced financial pressure on households. For some recipients it guarantees they can afford essential foods even when their finances are difficult. For others the payments have freed up money for costs such as household bills. Healthcare professionals were pleased to see the positive impact Best Start Foods was having on the health and wellbeing of families as a preoccupation with finances could impact the relationship they had with their children.

On 29 July 2022 we published the interim evaluation of SCP^[27]. This provides evidence on the lived experience the people receiving the benefit, including those with a disabled child and families from minority ethnic backgrounds. This evaluation focused on qualitative data gathering. A further evaluation of SCP will be undertaken after the policy has been fully rolled out to all eligible children under 16 and allowing for enough time to make a full assessment.

The interim evaluation of SCP describes a number of positive findings. In the broad, SCP has made a positive difference to children and families. SCP has led to more money being spent on children, including for essentials like food, family day trips, and medical items for families with disabled children. SCP has reduced the financial pressure on households. SCP has helped recipients avoid debt, and some feel they would be forced to use foodbanks without the benefit. The application forms were straightforward. SCP recipients reported that this gives them a sense they are entitled to the payment, as opposed to feeling they have to prove themselves for it.

Some SCP recipients still struggled financially when payments were at the £10 weekly rate, and felt rises in the cost of living limited its impact. The weekly rate of SCP has since increased to £20 in April 2022 and will increase again to £25 as part of these regulations. Recipients' perceptions of impact will continue to be monitored, and the rate of payment kept under review.

There have been increases in application processing times across both SCP and BSF. Some recipients also report issues - e.g. a lack of communication on the progress of claims, or long helpline waiting times. Steps could therefore be taken to review processing times and to keep applicants better informed about their claims.

Children's views on poverty

In the Children's Parliament report What Kind of Scotland?,^[28] poverty is identified as the most important barrier to a good life. It affects children day to day, in terms of practical things like having enough food to eat and a house that is warm, but also because children may notice the stress money concerns cause the adults at home.

As part of the formation of the CRWIA for the first TCPDP,^[29] the Poverty and Inequality Commission identified themes, which were developed through consultation with children and young people facilitated by the Children's Parliament, Young Scot and the Princes Trust, into recommendations including:

• Social Security: put more money towards benefits;
• Improve quality of life by providing greater support to those affected by poverty; and
• Increase incomes and reduce costs to support with: the cost of the school day; the cost of travel; and activity expenses.

The FFP are one means of addressing these recommendations. They provide families in poverty with an increased income to support the range of costs identified. SCP and BSG are designed to be flexible so they can be used in a way that will best meet the needs of the individual child. BSF is designed to tackle the impact of poverty by supporting access to healthy foods and milk.

Young parents

Parental age has a significant impact on child poverty rates: 55% of children whose mother is aged under 25 are in relative poverty, compared with 23% of children whose mother is 25 or over.^[30] Naomi Eisenstadt, the First Minister's Independent Poverty and Inequality Advisor, produced a 2017 report^[31] highlighting some of the reasons young people might experience poverty including: an increasing proportion are living in the private rented sector; they are more likely to be in low quality employment; and more likely to experience difficulties accessing the labour market. She recognised that the use of Scotland's social security powers could be useful to support young people.

The Scottish Government's Pregnancy and Parenthood in Young People Strategy^[32] also highlights that young mothers are considerably more reliant on state benefits and tax credits than older mothers – a position that remains the case as the child ages, meaning that they are more likely to be eligible for the FFP.

The latest analysis of client diversity and equalities data^[33] shows that for approved SCP applications between December 2020 and May 2021 15% (4,595) were from people aged 16-24. This analysis also shows that for approved BSF and BSG applications in the same period, 21% (3,005) were from people aged 16-24.

It is clear from our user testing that many young parents find accessing the welfare and income to which they are entitled confusing and difficult. We conducted user research workshops with young parents (under 18) through a charity. The input we got from this group highlighted their preference towards a digital service, finding contact via phone daunting, and helped to shape the wording and design of the application form e.g. we took forward their suggestion that pre-application content should be displayed over several pages. Through our policy engagement, some of the young mothers we spoke to highlighted the importance of being able to speak to someone about their entitlement. A multi-channel application process and promotion both digitally and through local services helps ensure young parents access the benefits that they are entitled to. In addition, we will continue to engage with stakeholders to ensure that promotion of the payment is embedded in pregnancy and maternity service to make young mothers aware of the support available.

Responses from the A New Future for Social Security Consultation^[34] highlighted under 18s as a group which would benefit from simpler provision. Under 18s are automatically entitled to BSG without the need for a qualifying benefit. This is also true for 18 and 19 year olds who are still dependent on someone who is either receiving benefits for them or is a kinship carer for them. Pregnant women who are under 18 and their partners are automatically entitled to BSF, without the need for a qualifying benefit. This is also true for parents who are under 18 and have a child who is under 1. Where a pregnant women is under 18 and her or her partner are in receipt of BSF they continue to be eligible for BSF without the need for a qualifying benefit once the pregnant woman turns 18 up until their child turns one.