Scotland
Location of low income
Key points
- Data on rates of low income is not available at a sub-regional level. For people of pensionable age, the best sub-regional data relates to those in receipt of the guaranteed Pension Credit - and as this is a means-tested benefit available to most low-income pensioners, variations in its geographic prevalence should be a reasonably good proxy for variations in the geographic prevalence of low-income pensioners. For people of working-age, the only directly relevant data relates to those in receipt of out-of-work benefits - but as a) this does not include anyone who is in low income because they are low paid and b) it includes everyone in receipt of out-of-work disability benefits even though they are not means-tested, variations in its geographic prevalence are not necessarily a good proxy for variations in the geographic prevalence of low-income working-age people. For example, the proportion of low-income people who are in working families (as opposed to workless ones) is much higher in rural areas than in urban areas, at least in England (see the indicator on low income by work status in rural England). As a result, the relative ranking of rural areas by benefit recipiency will tend to place them lower in the rankings than would be the case for low income. With these caveats in mind, this indicator provides an analysis of the geography of benefit recipiency.
- The proportion of working-age people in receipt of out-of-work benefits ranges from one in four in Glasgow to less than one in ten in Aberdeenshire.
- People in receipt of guaranteed Pension Credit is the best indicator available for the geographic distribution of low income among pensioners. More than twice as many people are in receipt of guaranteed Pension Credit in Glasgow, Eilean Siar and West Dunbartonshire than in East Dunbartonshire and East Renfrewshire.
Graph 1: Working-age by LA
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Map 1: Working-age
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Graph 2: Retired by LA
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Map 2: Retired
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Definitions and data sources
There is no direct data on the location of low income people within Scotland. In this context, this indicator looks at the location of people who are reliant on the state for their income.
The first graph shows, for the latest year, how the proportion of the working-age population who are in receipt of a key out-of-work benefit varies by local authority. The map shows the same data but by data zone.
'Key out-of-work benefits' is a DWP term which covers the following benefits: Jobseeker's Allowance, Income Support, Incapacity Benefit, Severe Disablement Allowance and Carer's Allowance. Note that this list is slightly different from 'key benefits', which also include Disability Living Allowance.
The second graph shows, for the latest year, how the proportion of people aged 60 and over in receipt of the guaranteed part of Pension Credit varies by local authority. The map shows the same data but by data zone.
This measure, rather than the broader measure of key benefits, is used because those in receipt of other benefits who have a low income will also be eligible for the guaranteed part of Pension Credit. The lower age limit of 60, rather than retirement age, is used because this is the age at which people become eligible for Pension Credit.
The data source for both the graphs and maps is the DWP Work and Pensions Longitudinal Study. The data has been analysed to avoid double-counting of those receiving multiple benefits by matching data from individual samples. ONS population estimates have been used to calculate the proportions in the second and fourth graphs.
Overall adequacy of the indicator: limited. The data is considered to be very reliable but is only an indication of geographic variations in low income.