| SOURCE: The data source is the Family Resources Survey (Households Below Average Income dataset). The unit of measurement is the individual. Households Below Average Income is a National Statistics dataset owned by Department for Work and Pensions. The indicator is published as part of the annual publication: Poverty and Income Inequality in Scotland. The publication can be accessed through the Income and Poverty website. The Family Resources Survey is a sample survey including approximately 42,700 households in Scotland. The responses of these households are weighted and grossed up to be representative of all private households in Scotland. Family Resources Survey (FRS) figures are only available at national level and so there are some proxy indicators for low income households at a local authority level. For detail see the Income and Poverty Statistics website: http://www.scotland.gov.uk/Topics/Statistics/Browse/Social-Welfare/IncomePoverty/income-data-sources The equivalised household income of each individual is compared to the 60% of the UK median and the person is considered to be in low income poverty if their income is below that threshold. The weighted and grossed number of people below the threshold is then divided by the estimated number of individuals in private households in Scotland to provide this indicator. The modified OECD scale is used, see DWP’s HBAI publication Annex 2 for more detail: http://research.dwp.gov.uk/asd/hbai/hbai2010/index.php?page=appendices . |
| DEFINITIONS: The income measure used is equivalised net disposable income before housing costs. This is income from all sources (including earnings, benefits, tax credits, pensions, and investments) after deductions for income tax, national insurance contributions, council tax, pension contributions and maintenance payments but before deductions for housing costs such as rent and/or mortgage payments. (A before housing costs, rather than after housing costs, measure has been selected because it is internationally comparable.) Equivalisation sums the income of all householders, adjusts it to reflect the composition of the household, and applies the resulting income to all householders. Private Scottish Households refers to all households that are not communal establishments such as hostels, prisons or hospitals, for example. The median is the middle value when the household income of all individuals in the UK are ranked in order. Sixty percent of the median is an internationally recognised poverty threshold. |
| CRITERIA FOR RECENT CHANGE ARROW: This evaluation is based on: any difference within +/- 1.0 percentage point 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 point or more suggests the position is improving; whereas an increase of 1.0 percentage point or more suggests the position is worsening. For more information on the general methodology applied on Scotland Performs: General methodological approach |