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Indicators of Sustainable Development for Scotland

Indicator 18. Home Life

Percentage of children living in workless households (Social Justice Milestone 1)

Percentage of children living in workless households

Source: Labour Force Survey: Office for National Statistics

The relevance of the indicator

Making the most of our greatest resource - our people - means giving every child the best possible start in life. Poverty of income and of opportunity in childhood are more likely to lead to poverty of experience as a young person and adult.

Detailed definition and source details

The indicator is defined as the proportion of dependent children aged under 19 years who are in households where no one is in work. The definition 'dependent' means children aged 0 - 15 and those aged 16 - 18 who are in full time education. The data are taken from the spring quarter of the Labour Force Survey which is run by the Office for National Statistics.

Trends

Between 1993 and 1996 there was little movement in this indicator. Since 1997, which is the baseline figure for our complementary measurements of children in low-income households ⁴¹, the proportion of children in workless households has fallen steadily. The figure for 2001 shows that 15% of all dependent children live in workless households. This is 4 percentage points lower than the figure in 1997.

Further disaggregation

The Labour Force Survey is designed to provide national level information. The current sample size of the survey does not allow for the further disaggregation of the information held on children living in workless households.

Target

There is no target, but there is a social justice milestone to reduce the proportion of children living in workless households. Reducing the proportion of children living in workless households is an important indicator of our progress on eliminating child poverty on the basis that work is the best route out of poverty.

Action

Over the past four years, in partnership with the UK government, we have taken action to raise the incomes of families, especially for those on the lowest incomes. To help children out of poverty we have provided more support than ever before to enable parents to work, and to ensure that they are better off in work. We have set the long term objective, in partnership with the UK government, of ending child poverty within a generation. Since then, we have made significant progress towards that aim, improving the lives, prospects, and opportunities of children and young people.

Progress to reduce the proportion of children in workless households is underpinned by the policies of the UK government, particularly in relation to the New Deal programmes and the modernisation of the tax and benefit system to make work pay.

The New Deal programmes, delivered in partnership with the UK Government, have been effective in moving people from welfare into work in Scotland. For example, 47,000 young people (18-24), 13,700 adults (25 years plus) and 17,200 lone parents have so far gone into jobs. The New Deal for Lone Parents is now one of the priority areas for action, due to the high levels of workless households with children headed by a lone parent.

The transition into work from benefits can be a difficult one for many parents, particularly lone parents. In order to make work pay, the UK Government put in place a range of tax credits since October 1999. The Working Families Tax Credit (WFTC) is now supporting approximately 127,000 families in Scotland. Childcare costs can be a barrier to parents entering employment. In recognition of this, childcare costs are also supported through the childcare tax credit component of both WFTC and Disabled Person's Tax Credit. The childcare tax credit supports up to 70% of eligible childcare costs up to a maximum of 135 per week for the first child, and 200 per week for parents with 2 or more children.

The supply of childcare is essential to making inroads into reducing the proportion of children in workless households. Childcare places are being expanded through Childcare Strategy funding and New Opportunities Fund programmes, targeting disadvantaged areas and fragile provision. We are looking at the current sitter services network, where childcare is provided in the parents home to support unusual working patterns for low income families, as a possible means of extending the eligibility to Childcare Tax Credit in Scotland.

The route into work can also mean participating in further and higher education courses. In recognising the particular barriers for lone parents to enter education, we are supporting some of the childcare costs for lone parents. In 2001, a further 24m 3-year package was introduced to support lone parents in college. This includes a 1000 childcare grant for lone parents taking higher education courses, and 7.5m to Further Education Colleges to widen childcare provision.

But poverty is not just about income - it is also about the crucial early years, and through Sure Start Scotland assistance is being provided to strengthen families and make a difference to children's health, education and well-being, through early intervention. Our programme for government target has been reached and exceeded. Our commitment to delivering services to children, families and communities is working towards breaking the cycles of economic and social exclusion for our children.

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