Why is this National Indicator important?
In order to create sustainable economic growth, with opportunities for all to flourish, Scotland needs to maximise its richest resource - its people. This means providing the opportunities and incentives for the whole population to contribute to and share in sustainable economic growth. This can only be done by decreasing the proportion who live in poverty.
Apart from the economic imperative, poverty places a blight on individuals' lives, on the communities in which they live and on society in general. Scotland is a compassionate nation with a strong sense of social justice and a belief in addressing the needs of the vulnerable. The Government believes it is morally unacceptable that 18% of Scotland's people live in poverty.
What will influence this National Indicator?
Poverty is a consequence of a complex and interrelated range of international, national, local community and individual factors. It is influenced by issues such as: the global economy; the UK tax and benefits system; national and local employment rates and wages; education and skills; family upbringing; health and disability; deprived physical environments; access to services; and transport.
What is the Government's role?
There are many drivers of poverty beyond the Scottish Government's control - including macro-economic conditions and a number of levers reserved to the UK Government, such as tax/benefits arrangements. However, the Scottish Government has a significant role to play in tackling the root causes of poverty through its policies in devolved areas such as education, health, skills, aspects of employability, housing, the criminal justice system and transport. The Government's role in setting and agreeing the key outcomes to be achieved in these areas; in targeting investment and passing legislation in pursuit of these outcomes; and in supporting local delivery bodies in meeting these outcomes, is key to delivering effective interventions which can tackle poverty and help make progress with this indicator.
How are we performing?
In 2006/07 there was a total of 840,000 individuals (17%) living in relative poverty (before housing costs). This is a reduction of just less than 1 percentage point from the previous year, showing that the position is relatively stable in the context of a slightly reduced trend in recent years.

Source: Department for Work and Pension's Family Resources Survey, Households Below Average Income datasets.
Methodology
This evaluation is based on: any difference within +/- 1.0 percentage points of last year's figure suggests that the position is more likely to be maintaining than showing any change. A decrease of 1.0 percentage points or more suggests the position is improving; whereas an increase of 1.0 percentage points or more suggests the position is worsening.
For information on general methodological approach, please click here.
Further Information
2007 Spending Review Technical Note
Statistics Topic Page
Who are our partners?
Local Authorities
Related Strategic Objectives
Healthier
Safer and Stronger
Smarter
Wealthier and Fairer
Greener