The impact of using an income supplement to meet child poverty targets: evidence from Scotland

Abstract In 2017 the Scottish Government passed Child Poverty (Scotland) Act with commitment to significantly reduce relative child poverty rate from current prevailing level of around 25% 10% by 2030/31. response, government introduced Payment (SCP) that provides a direct transfer households at fixed per eligible – currently £25 week. this paper we explore, using micro macro modelling approach, effectiveness SCP achieve targets. While find ambitious targets can technically be met solely SCP, necessary payment £165 week amounting total cost £3 billion year, makes political and economy-wide barriers significant. A key issue only is non-linearity in response payment; as increases, marginal gain reduction decreases particularly evident after payments £80 ‘policy-mix’ option combining targeted cash transfers other policy levels (such childcare provision) seems most promising approach reaching