Annual report shows affordable housing fights child poverty

The Scottish Government has been actively working towards tackling child poverty by investing £1.4 billion in affordable housing, assisting 2,015 households with children between April and December 2023. This investment is highlighted in the latest annual progress report which outlines key actions to combat child poverty, including the delivery of 6,045 affordable homes, with two-thirds designated for social rent.

The significance of ensuring access to warm and affordable homes is emphasised in the report, stating, “Access to a warm, safe, and affordable home is crucial in effectively addressing child poverty in Scotland. As families face challenges in meeting rent and energy costs due to the ongoing cost of living crisis, support has been provided through an emergency rent cap and an increased investment in the Fuel Insecurity Fund for 2023-24. The government has also taken wider action to provide more affordable homes and tackle homelessness in Scotland.”

The report further mentions the introduction of the Housing (Scotland) Bill, which includes ambitious measures to enhance protections for tenants in the long term. Collaboration with stakeholders is ongoing to ensure that if passed by Parliament, the Bill’s powers will be implemented in a manner that best advances Scotland towards the goals set out in Housing to 2040.

Key highlights of the housing-related impact of the child poverty investment include:

• An estimated 2,015 households with children were assisted in finding affordable housing through the Affordable Housing Supply Programme between April and December 2023.
• 6,045 affordable homes were delivered during the same period, with 4,358 allocated for social rent. Additionally, 3,167 homes were approved, and 3,412 homes were initiated.
• Keeping social rents significantly lower than market rents benefits around 140,000 children living in poverty each year.
• The £30 million Fuel Insecurity Fund supported up to 150,000 households during the peak of the energy bills crisis, including many families with children.
• Eligibility criteria for Warmer Homes Scotland (WHS) was expanded in April 2023, allowing 225,000 more households to qualify for the scheme. Phase one of WHS in 2023-24 completed energy efficiency and heating upgrades in 3,800 homes, while phase two supported 1,173 homes from October to April, resulting in average fuel bill savings of £580 per year for households in phase two.
• The end of year report for the Warmer Homes Scotland scheme in 2022-23 showed that 10% of applications listed ‘Child under 16-qualifying benefits’ as the lead eligibility criteria.
• Over 450,000 households received support through Council Tax Reduction (CTR), saving recipients an average of over £800 per year. As of March 2023, approximately 98,000 households with children received CTR.

Additional measures taken to address child poverty include:

• Allocation of nearly £430 million to families through the Scottish Child Payment, benefiting over 329,000 children by March 2024.
• Expansion of eligibility for Best Start Foods to allow more low-income families access to nutritious food, benefiting thousands of children and pregnant women.
• Support for around 4,400 children through ongoing work to establish a system of school-age childcare and the provision of 1140 hours of funded childcare for eligible children.
• Provision of free bus travel to over 2.3 million individuals, with 727,000 children and young people registered as of March 2024.

Cabinet Secretary for Communities, Social Security, and Equalities, Shirley-Anne Somerville, expressed the government’s commitment to eradicating child poverty, with the aim of keeping 100,000 children out of relative poverty this year through various policies and initiatives. She highlighted the impact of investments such as the Scottish Child Payment and efforts to mitigate the Benefit Cap, noting the ongoing push for independence to have all necessary powers to address inequalities effectively. However, in the meantime, she assured that all available actions are being taken towards achieving the set goals.