A major independent study has found that the Scottish Child Payment is significantly reducing child poverty and food insecurity across Scotland, while highlighting the need for further investment to help families move beyond simply meeting basic needs.
The findings come from the Family Finances project, led by researchers from the University of Glasgow and the University of Manchester, and provide what researchers describe as the clearest evidence yet of the impact of the Scottish Government’s flagship anti-poverty benefit.
Introduced in 2021, the Scottish Child Payment provides financial support to low-income families with children. Researchers compared families in Scotland with those in England, where no equivalent payment exists.
The study found that food insecurity and material deprivation would have been between eight and nine percentage points higher in Scotland had the payment not been introduced.
Researchers also found that levels of food insecurity and material deprivation fell in Scotland relative to England following the introduction of the benefit.
As part of the study, researchers carried out in-depth interviews with families receiving Universal Credit in both Scotland and England.
Parents in Scotland said the payment made a significant difference to their household finances, helping them afford essentials such as food and clothing for their children.22
In contrast, many of the families interviewed in England reported struggling to meet basic household costs and often relied on support from extended family members to get by.
Despite the positive findings, researchers warned that the payment is not currently high enough to lift many families beyond financial hardship.
They found that continuing cost-of-living pressures mean many households remain under severe strain, limiting opportunities for children to fully thrive.
The study also examined concerns that the Scottish Child Payment could discourage people from working.
Researchers found no evidence that the benefit created work disincentives, with analysis showing no impact on employment rates, working hours or labour market participation among recipient families.
Professor Ruth Patrick, co-principal investigator of the Family Finances project, said: “The research makes clear that the flagship Scottish Child Payment has made a real and lasting difference to both levels and experiences of poverty for families in Scotland.
“By conducting statistical analysis and speaking directly to families in Scotland who receive this benefit, and those in England who do not, we now better understand the difference this support makes.
“Further investment in social security by raising the level of the Scottish Child Payment is the critical next step in further reducing child poverty and getting Scotland on track to meet the 2030 child poverty reduction targets.”
The researchers said the findings demonstrate that investment in social security is an effective way of reducing child poverty and improving children’s lives.
They have called on both the Scottish and UK governments to increase support for families through measures including higher Scottish Child Payment rates, Universal Credit and Child Benefit.
John Dickie, director of Child Poverty Action Group Scotland, said: “The evidence is crystal clear that investing in social security is extremely effective at reducing poverty and improving children’s lives.
“The Scottish Government must build on the investment it has made and increase Scottish Child Payment further as a matter of utmost urgency, and the UK Government must act to make a similar investment in Child Benefit and Universal Credit.”