Poverty - % of children living in poverty after housing costs (c22)

• This indicator  shows the percentage of children who are in households with incomes - after housing costs are removed - that are below 60% of the average (using the median).
• This data is obtained from the End Child Poverty publication which uses data from Scottish Government: Children in Low-income Families: Local area statistics and the mid-year Population Estimates published by the National Records of Scotland (NRS).
• The data uses the Department for Work and Pensions (DWP) / HM Revenue and Customs (HMRC) local indicators combined with information about housing costs at a local level to estimate poverty rates after housing costs. 

Why this matters

• This measure uses an indication of how much money families have left after housing costs, as these costs vary hugely, so they change the real level of disposable income.  This gives an indication of what is left for food, clothing, heating, transport, and social activities and, by doing so and by using the 60% threshold and population estimates by age, provides an indication of the proportion of children living in poverty.
• A household income below 60% of the median is considered the poverty level in the UK and many other nations because it serves as an international, relative standard for measuring who is excluded from the minimum, acceptable standard of living in modern society.
• The 60% threshold is designed to capture relative poverty, which tracks how low-income households are doing compared to the rest of the population, rather than simply measuring who can afford basic survival (absolute poverty).

Latest performance

With the vision of inclusive growth and prosperity for all in The Plan for North Lanarkshire, this indicator is of particular relevance to ensure that all of North Lanarkshire’s children get the best start in life.

The latest results show that 24.9% of children are living in poverty (after housing costs) in North Lanarkshire, while this is an improvement from the previous year it’s still reflects approximately one in four children.

• Significant improvements were noted in the proportion of children in poverty over the initial period of The Plan for North Lanarkshire - from a baseline of 25.2% to 23.2% in 2020/21 (Figure 22a).
• After 2020, figures increased to 26.6% and then to 26.9%.  This trend was experienced nationally across all of Scotland with rates having been impacted by the pandemic and subsequent increased living costs.
• The latest results show a reversal nationally and locally with improvement recorded in terms of the proportion of children in poverty.  This includes improvement in North Lanarkshire where rates have dropped from 26.6% to 24.9% which is lower than The Plan for North Lanarkshire baseline (25.2%). Factors such as economic growth and investment in social policies and initiatives are considered to have contributed to the recent positive change in this respect.

While the latest results for North Lanarkshire (24.9%) show improvement from the previous year and are lower than the comparative average for the group of similar councils (25.3%), figures remain above the national average of 20.7% which reflect approximately one in five children.

The data in Figure 22a, which looks at poverty levels after housing costs, is not available at a level below North Lanarkshire.

Impact of delivering The Plan for North Lanarkshire

Reducing the proportion of children living in poverty delivers wide‑ranging benefits - it improves early health and reduces risks such as infant mortality, nutritional anaemia, and emergency hospital admissions by ensuring families can afford the essentials that support healthy development. Because poverty is strongly linked to poorer mental health, developmental delays, and chronic illness across the life course, reducing child poverty strengthens children’s emotional wellbeing and long‑term health, while also boosting educational readiness and future economic prospects through increased family income. 

Reducing the proportion of children living in poverty also reduces pressure on public services by lowering the number of children entering care and decreasing the health‑related demand that stems from deprivation.