Press Release
Scotland’s ‘social contract’ keeps 65,000 children out of poverty
09 April 2026
09 April 2026
65,000 more Scottish children would be living in relative poverty today if Scotland’s poverty rate matched that of the UK’s, new analysis has revealed.
New research published by the non-partisan think tank Future Economy Scotland finds that:
- Relative child poverty in Scotland was 21% in the period 2022-25, meaning 210,000 children were in households with incomes below the poverty line. This compares to 28% across the UK as a whole [1].
- This means that if Scotland’s child poverty rate were in line with the UK’s, around 65,000 more children would be living in relative poverty today [2].
- Over the past two years, child poverty in Scotland has fallen from 25% to 21%, while across the UK has stayed broadly stable at 28%.
- This gap can be linked to Scotland’s distinct ‘social contract’, including greater provision of social housing, the mitigation of UK welfare cuts, and new devolved welfare policies such as the Scottish Child Payment [3]. By providing more affordable housing and boosting incomes for low-income families, Scotland’s distinct approach has lifted children out of poverty while progress has stalled across the UK.
Despite this welcome progress, Scotland remains off track to meet its legally binding target of reducing child poverty to below 10% by 2030. Achieving this will require a reduction of 11 percentage points in relative child poverty – lifting around 110,000 additional children out of poverty over the course of the next Parliament. This requires a step change in policy and funding to accelerate poverty alleviation across Scotland.
Commenting on the research, Future Economy Scotland Co-Director Laurie Macfarlane, said:
“The fact that Scotland has significantly lower child poverty than the UK is no accident. It reflects deliberate devolved policy choices – from delivering more social housing to ambitious policies like the Scottish Child Payment. But simply outperforming the UK is not enough. Scotland can – and should – go further.
“In 2017, the Scottish Parliament voted unanimously to reduce child poverty to below 10% by 2030, but without bold action this is unlikely to be achieved. Delivering this is not just a moral imperative – it is one of the most important investments we can make in our economic future. As we approach the next Scottish election, politicians should remember: poverty is a policy choice. It can be eradicated – but only if we commit the funding and policies needed to achieve it.”
ENDS
NOTES TO EDITORS
[1] All child poverty data is taken from the ONS’s Households Below Average Income (HBAI) statistics. Child poverty relates to 3-year average relative child poverty after housing costs, for the latest period 2022-25.
[2] The analysis compares relative child poverty rates in Scotland (21%) and the UK (28%) and applies the percentage gap (6.5%) to the number of children in poverty in Scotland in the period 2022-25 (210,000).
[3] Scotland’s ‘distinct social contract’ refers to a suite of policies that diverge from the rest of the UK to provide a stronger social safety net. Key pillars include a significantly larger per-capita stock of social housing – sustained by historically higher building rates and the 2016 abolition of ‘Right to Buy’ – and the mitigation of UK-wide welfare restrictions. This includes using devolved funds to offset the ‘Bedroom Tax’ and the Benefit Cap. Furthermore, Scotland has introduced unique benefits like the Scottish Child Payment, which the Scottish Government projects will reduce child poverty by around 50,000 children in 2026–27. Scotland also maintains a national Council Tax Reduction (CTR) scheme that is more generous than England’s local systems, allowing eligible households to receive a reduction of up to 100%.
[4] Future Economy Scotland is a non-partisan think tank that aims to create a new economy that is democratic, sustainable and just. The organisation does not have a formal stance on Scotland’s constitutional future, and is not aligned to any political party or any politician. The organisation is a not-for-profit company limited by guarantee operating with charitable principles. For more information, visit: www.futureeconomy.scot
[5] To book an interview with a spokesperson, or for any other questions, please contact press@futureeconomy.scot or call 07909107890