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Technical Note: Reduce children's deprivation

Reduce children's deprivation

DESCRIPTION:

Percentage of children in combined material deprivation (based on a suite of questions in the Family Resources Survey) and low income (below 70% of UK median income).

Children and young people growing up in poverty are more vulnerable than their peers to a wide range of negative outcomes. This represents a huge injustice and waste of human potential.

SOURCE:

The data source is the Family Resources Survey (Households Below Average Income dataset). The unit of measurement is the individual.

Households Below Average Income is a National Statistics dataset owned by Department for Work and Pensions.

The indicator is published as part of the annual publication: Poverty and Income Inequality in Scotland.  The publication can be accessed through the Income and Poverty website.

DEFINITIONS:

This measure aims to understand more about what families with children can afford to spend money on. Combined material deprivation: Material deprivation is calculated from a suite of questions in the Family Resources Survey (FRS) about whether people can afford to buy certain items, and participate in leisure or social activities. This measure is combined with information about which households have incomes below 70 per cent of median income to create the 'material deprivation and low income combined' indicator. This indicator aims to provide a measure of children's living standards which, unlike relative and absolute poverty, is not solely based on income.  Children are considered to be in combined low income and material deprivation if the live in a household whose income is less than 70% of UK median income AND they are considered materially deprived.  Otherwise they not considered to be in combined low income and material deprivation.

The 21 items in the suite of questions used to measure material deprivation are designed to reflect the items and activities people in the UK believe to be necessary.  These items are reviewed periodically to ensure the measure remains a relative measure of poverty.  In 2010/11 four new items were included in the FRS, and in 2011/12 four old items were removed.  Both sets of questions were asked in 2010/11 to allow an overlap for comparison.  This creates a break in the child material deprivation series, with the measure for 2004/05 to 2010/11 on the old basis.  The new measure is presented from 2010/11.

BASELINE AND PAST TRENDS:

The baseline year is 2006/07 as this is the last data point before the start of the first term of the current administration. The baseline figure is 15.5%.  The suite of questions used to determine material deprivation changed in 2010-11 and so this produces a break in the time series.

Percentage of children in combined material deprivation (based on a suite of questions in the Family Resources Survey) and low income (below 70% of UK median income):

Year

Percentage of children (Old Indicator)

Percentage of children (New Indicator)

2004/05

16.8%

-

2005/06

12.9%

-

2006/07

15.5%

-

2007/08

15.6%

-

2008/09

16.4%

-

2009/10

14.8%

-

2010/11

13.0%

11.9%

2011/12

-

8.6%

2012/13

-

10.8%

2013/14

-

13.2%

2014/15

-

10.4%

2015/16

-

10.2%

2016/17 - 10%

CRITERIA FOR RECENT CHANGE ARROW:

The evaluation is based on: any difference within +/- 2 percentage points of last year's figure suggests that the position is more likely to be maintaining than showing any change. A decrease of 2 percentage points or more suggests the position is improving; whereas an increase of 2 percentage points or more suggests the position is worsening.

For more information on the general methodology applied on Scotland Performs:

General methodological approach

FUTURE ISSUES OR REVIEWS:

No issues.

ASSOCIATED TARGET:

Target: To reduce the proportion of children who live in material deprivation and have a low income to less than 5 per cent by the end of year commencing 1 April 2020.

For more information on the target see the Child Poverty Act:

http://www.legislation.gov.uk/ukpga/2010/9/contents

Although these targets are specified by the Child Poverty Act some details of the measures used still have to be set out in regulations to the Act.

End point: End of year commencing 1 April 2020.