Scottish Child Payment has reduced child poverty but more investment needed, study finds

Posted on Thursday 25 June 2026

The comprehensive report also warns that further financial investment is urgently required if children are to move beyond merely surviving to truly thriving. 

The results from the Family Finances project indicate that Scottish Child Payment is improving children's lives. The research estimates that both child material deprivation and food insecurity would have been between eight and nine percentage points higher in Scotland had the payment not been introduced. 

The findings provide compelling evidence that investment in social security for children is an effective way of reducing child poverty. The study also found that levels of food insecurity and child material deprivation in Scotland fell relative to England following the introduction of the Scottish Child Payment. 

Basic needs

The research also found that, despite the SCP’s positive impact, the payment is not currently set at a level that allows many families to move beyond meeting basic needs. Ongoing cost-of-living pressures mean that many households continue to experience severe financial strain, limiting opportunities for children to fully thrive. 

The Scottish Child Payment, introduced by the Scottish Government in 2021, provides financial support to low-income families with children. By comparing outcomes for families in Scotland with those in England, where equivalent support is not available, researchers have been able to provide the clearest evidence to date of the payment's impact. 

Dr Kate Andersen, Co-Investigator of the Family Finances project, from the University of York said: 

"Our evidence provides an overwhelming case that increasing financial support for children is vital for combating child poverty. If the UK and Scottish governments are serious about meeting their child poverty targets, they need to increase Universal Credit and Child Benefit, and the Scottish government needs to build on its investment in children through above-inflation increases in the Scottish Child Payment."

In-depth interviews

Alongside the statistical analysis, researchers carried out in-depth interviews with families receiving Universal Credit in Scotland and England. Parents in Scotland consistently described the Scottish Child Payment as making a significant difference to household finances, often providing a vital lifeline that enabled them to buy food, clothing and other essentials for their children. 

In contrast to the Scottish families, the vast majority of the families in England the researchers spoke to were barely getting by and were often only able to manage due to help from extended family members. Without the additional support for children that the SCP provides, the English participants struggled to meet basic household needs. 

The study also addresses concerns that the Scottish Child Payment could discourage employment. However, researchers found no evidence that the policy has created work disincentives, with analysis showing no impact on employment rates, hours worked or labour market participation among recipient families. 

Increase investment

The researchers now argue that the UK Government should increase investment in children across the UK through Universal Credit and Child Benefit, while the Scottish Government should continue to build on the success of the Scottish Child Payment through above-inflation increases and further investment to help meet its child poverty targets. 

John Dickie, Director of the Child Poverty Action Group Scotland, said: 

"These findings could not be timelier. The clock is ticking to meet Scotland's 2030 child poverty targets, and the UK government needs to build on the abolition of the two-child limit if it is to meet its child poverty ambitions. 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. Social security is not the answer to everything, but on child poverty it goes a long way."