Welfare reform - impact on households with children: report
A report that presents analysis of the impacts of UK Government reform on households with children in Scotland.
Appendix D: Illustrative households
The illustrative households set out below are based on the following broad assumptions, designed to provide a reasonable illustration of how the reforms might impact on typical households in Scotland. They do not provide a comprehensive view, and few (if any) households in Scotland will have the precise characteristics set out below.
- Working single mothers work 19 hours per week, on average[33]
- The minimum wage will be uprated at the same rate as other wages by 2023 (3.9%). This wage is used for the lone parent and unemployed households only[34]
- The median salary in Scotland will have increased by 9% by 2023 compared with 2021. [35]
- Rent is based on Local Housing Allowance rates for Stirling[36]
- Other household characteristics have been chosen for simplicity or analytical purposes
Baseline | ||||||
---|---|---|---|---|---|---|
Lone parent | Three children | Unemployed | Disabled adult | Disabled child | ||
Equivalised household income, AHC, baseline | 12,000 | 10,000 | 6,500 | 14,400 | 13,200 | |
Rent | 500 | 940 | 650 | 650 | 650 | |
Salary basis | Minimum wage | Average salary | - | Average salary | Average salary | |
Adult 1 | Age | 24 | 45 | 45 | 45 | 45 |
Hours worked per week | 19 | 37.5 | 0 | 37.5 | 37.5 | |
Earnings per month | 810 | 2880 | 0 | 2880 | 2880 | |
Work history | 6 | 27 | 0 | 27 | 27 | |
Adult 2 | Age | 45 | 45 | 45 | 45 | |
Hours worked per week | 0 | 0 | 0 | 0 | ||
Earnings per month | 0 | 0 | 0 | 0 | ||
Work history | 0 | 0 | 15 | 0 | ||
Child 1 | Age Age Age | 1 | 16 | 16 | 16 | 16 |
Child 2 | 12 | 12 | 12 | 12 | ||
Child 3 | 8 | |||||
Manual benefits | £388 per month DLA /PIP | £388 per month DLA /PIP |
Baseline + 10 hours work | ||||||
---|---|---|---|---|---|---|
Lone parent | Three children | Unemployed | Disabled adult | Disabled child | ||
Equivalised household income, AHC, baseline | 13,400 | 11,600 | 8,700 | 15,300 | 14,500 | |
Rent | 500 | 940 | 650 | 650 | 650 | |
Salary basis | Minimum wage | Average salary | Average salary | Average salary | Average salary | |
Adult 1 | Age | 24 | 45 | 45 | 45 | 45 |
Hours worked per week | 29 | 37.5 | 10 | 37.5 | 37.5 | |
Earnings per month | 1240 | 2880 | 430 | 2880 | 2880 | |
Work history | 6 | 27 | 27 | 27 | 27 | |
Adult 2 | Age | 45 | 45 | 45 | 45 | |
Hours worked per week | 10 | 0 | 10 | 10 | ||
Earnings per month | 780 | 0 | 430 | 780 | ||
Work history | 27 | 0 | 15 | 27 | ||
Child 1 | Age | 1 | 16 | 16 | 16 | 16 |
Child 2 | Age | 12 | 12 | 12 | 12 | |
Child 3 | Age | 8 | ||||
Manual benefits | £388 per month DLA /PIP | £388 per month DLA /PIP |
Contact
Email: spencer.thompson@gov.scot
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