News / New research into low wage poverty
RESEARCH has been commissioned into the extent and impact of in-work poverty in Shetland.
Making ends meet while living on a low wage is a growing problem across the UK, with some figures suggesting that as many as 13.2 million people are living in relative poverty.
Any household with an income of less than 60 per cent of median income (£386 per week according to the Full Fact website) is considered to be below the poverty line.
Individuals are deemed to be in-work poverty if their household income falls below the poverty line and if at least one adult in the household is in paid work.
In Shetland, and in other remote parts of the Highlands and Islands, the situation is further aggravated by significantly higher cost of living, according to Highlands and Islands Enterprise (HIE).
Shetland Islands Council, HIE and the islands’ Citizens Advice Bureau have now commissioned leading market research company Ipsos MORI Scotland.
Led by poverty expert Dr Donald Hirsch, the research will provide information on the number of households in Shetland who are in work but below the poverty line, as well as information on zero-hours contracts, temporary contracts and low pay.
It will also provide an opportunity to explore families’ experiences of living on a low wage, and the impact that has on them.
The study is now underway, with a full report and recommendations due before the end of March 2017.
Interviews will be held with public and private sector employers, to understand more about the actions employers are taking and the challenges they face.
Council leader Gary Robinson said: “With one in five Shetland households estimated to be living on £13,500 or less a year, it is essential that we are well informed in order to be able to respond to the growing issue of in-work poverty in the isles.”
Manager of the Citizen’s Advice Bureau in Lerwick said: “At CAB we see first-hand the impact that living on low incomes has on families who are having to make tough decisions about which bill to pay and what to do without.
“Often people are on the edge of managing and it can take just one unexpected bill or a period of illness to tip them over into debt.
“Part of this research will provide evidence about how we can best support folk in this position.”
In March this year, Shetland’s own Commission on Tackling Inequalities found inequality to be an “inescapable feature of Shetland life” and called for government benefits to be set at a rate that takes into account the higher cost of living in the islands.
HIE area manger Rachel Hunter added: “There is increasing recognition that businesses across Scotland have a role to play in reducing in-work poverty levels.”
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