Child Poverty (Scotland) Act 2017

Targets relating to child poverty

1 2030 targets

(1) The Scottish Ministers must ensure that the 2030 targets are met in the financial year beginning with 1 April 2030.

(2) The 2030 targets are that, of children living in households in Scotland—

(a) less than 10% fall within section 3 (relative poverty),

(b) less than 5% fall within section 4 (absolute poverty),

(c) less than 5% fall within section 5 (combined low income and material deprivation),

(d) less than 5% fall within section 6 (persistent poverty).

2 Interim targets

(1) The Scottish Ministers must ensure that the interim targets are met in the financial year beginning with 1 April 2023.

(2) The interim targets are that, of children living in households in Scotland—

(a) less than 18% fall within section 3 (relative poverty),

(b) less than 14% fall within section 4 (absolute poverty),

(c) less than 8% fall within section 5 (combined low income and material deprivation),

(d) less than 8% fall within section 6 (persistent poverty).

3 Relative poverty

A child falls within this section in a financial year if the child lives in a household whose equivalised net income for the year is less than 60% of median equivalised net household income for the year.

4 Absolute poverty

(1) A child falls within this section in a financial year if the child lives in a household whose equivalised net income for the year is less than 60% of the amount of median equivalised net household income for the financial year beginning with 1 April 2010, adjusted to take account of changes in the value of money since that financial year.

(2) The Scottish Ministers may by regulations substitute a different date for the date mentioned for the time being in subsection (1).

(3) Regulations under subsection (2) are subject to the affirmative procedure.

5 Combined low income and material deprivation

A child falls within this section in a financial year if the child—

(a) lives in a household whose equivalised net income for the year is less than 70% of median equivalised net household income for the year, and

(b) experiences material deprivation in the year.

6 Persistent poverty

(1) A child falls within this section in a financial year if the child has lived—

(a) in each of the survey years, in a household in Scotland, and

(b) in at least 3 of the survey years, in a household whose equivalised net income for the survey year was less than 60% of median equivalised net household income for the survey year.

(2) The survey years are—

(a) the calendar year that ends during the financial year, and

(b) the 3 previous calendar years.

7 Calculation of net household income

(1) For the purposes of this Act, the deductions to be made in calculating net household income include housing costs.

(2) In this Act—

• “equivalised”, in relation to household income, means adjusted to take account of variations in household size and composition,

• “median equivalised net household income” means the median equivalised net household income for the United Kingdom.