Dundee City Poverty Profile

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Dundee City Poverty Profile 2013 Produced by: Tony Jenkins Senior Planning Officer (Information & Research) Information & Research Team Chief Executive Department Dundee City Council email: anthony.jenkins@dundeecity.gov.uk tel: 01382 433219

DCC Poverty Profile Dundee City Draft Contents Page 1 Introduction... 1 2 Key Points... 2 3 Poverty Discussion... 3 3.1 Scottish Index of Multiple Deprivation 2012... 3 3.2 Benefit and Tax Credit Data Sets... 3 4 Dundee City Council Overview... 4 5 Poverty Topic Indicators... 5 5.1 Scottish Index of Multiple Deprivation 2012... 5 5.1.1 Income Deprivation... 6 5.1.2 Employment Deprivation... 6 5.2 Economic Activity... 7 5.2.1 Jobseekers Allowance Claimants... 7 5.2.2 Working Age Population Claiming Key Benefits... 7 5.2.3 Incapacity Benefit or Severe Disablement Allowance Claimants... 8 5.3 Income... 9 5.3.1 CACI Paycheck Data... 9 5.4 Child Poverty... 10 5.4.1 Children in 15% Most Deprived SIMD and Income Domain 2012... 10 5.4.2 Percentage of Children Living in Poverty... 11 5.4.3 School Entitlements - Pupils Registered for Free School Meals - 2012... 12 5.5 In Work Poverty... 13 5.5.1 Working Tax Credits... 13 5.6 Housing... 14 6 Appendix 1 - Indicator Information... 15 7 References... 16

Charts Chart 1: Population Living in the 15% Most Deprived Data Zones of SIMD 2012... 5 Chart 2: Percentage of Population That Are Income Deprived, SIMD 2012... 6 Chart 3: Percentage of Population That Are Employment Deprived, SIMD 2012... 6 Chart 4: Gross Household Income: Dundee and Scotland, CACI Paycheck 2012... 9 Chart 5: Percentage of Children Living in 15% Most Deprived SIMD 2012... 10 Chart 6: Percentage of Children Living in 15% Most Income Deprived SIMD 2012... 10 Chart 7: Children in Poverty by Local Authority, 2010... 11 Chart 8: Children in Poverty by Lone Parent / Couple... 11 Chart 9: Children in Poverty by Family Size... 11 Chart 10: Children in Poverty by Age... 11 Chart 11: Percentage of Pupils Registered for Free School Meals - Primary Schools 2012... 12 Chart 12: Percentage of Pupils Registered for Free School Meals - Secondary Schools 2012... 12 Chart 13: All Families in Work Receiving WTC and CTC, Percentage of all Households, 2009/10... 13 Tables Table 1: Dundee City 2011 Demographic Profile... 4 Table 2: Jobseekers Allowance Claimants: Dundee and Scotland 2012Q03... 7 Table 3: Population Claiming Key Benefits: Dundee and Scotland 2012Q03... 7 Table 4: Population Claiming Incapacity Benefit or Severe Disablement Allowance: Dundee and Scotland 2012Q03... 8 Table 5: Mean Household Income: Dundee, Scotland, Great Britain 2012... 9 Table 6: Dundee City and Electoral Ward Housing Tenure Information... 14

1 Introduction The Dundee City Poverty Profile details data sources to try and ascertain a better understanding of the issue of poverty within Dundee City Council Local Authority. The profile is structured as follows: Section 2 presents the key findings from the Poverty Profile. Section 3 briefly discusses the current views on measuring poverty and the data sources that have been mentioned. Section 4 provides an overview of the Dundee City Council Local Authority area and demographic. Section 5 breaks down the aim of identifying levels of poverty that exist in Dundee City by examining different data sets within broad topic areas. These areas are: Scottish Index of Multiple Deprivation Economic Activity Income Child Poverty In-Work Poverty Housing Section 6 contains the Appendix which contains some metadata about income indicators used. Section 7 contains references used within the poverty profile. This report is an update to the profiles that were first produced in 2011 and these can be found on the Dundee Partnership website using the following link: http://www.dundeepartnership.co.uk/content/performance-monitoring Page 1 of 16

2 Key Points Using income as a proxy for measuring/estimating poverty Dundee City Local Authority: had the third largest percentage of its population (29.2%) living in the 15% Most Deprived areas. had the fifth largest percentage of its population (17.8%) classed as income deprived. had the fifth largest percentage of its working age population (16.9%) classed as employment deprived. had a higher percentage of its working age population (5.8%) claiming jobseekers allowance than the Scottish average (4%) (2012 Quarter 3). had a higher percentage of its working age population (21.1%) claiming Key Benefits than the Scottish average (16.3%) (2012 Quarter 3). had a greater percentage of its population aged 16 yrs + (4.3%) claiming Incapacity Benefit or Severe Disablement Allowance than the Scottish average figure. (3.2%) (2012 Quarter 3). had a greater percentage of households (44.5%) in these lower income categories 0-20k than the Scottish average(39.2%) (CACI 2012). had an average mean income that is 11.6% less than the Scottish figure, and 16.2% less than the UK. had the third highest percentage of its children (36.9%) living in areas within the 15% Most Deprived in Scotland. - SIMD 2012. had the second highest percentage of its children (35.5%) living in areas within the 15% most income deprived in Scotland - SIMD 2012. had over a quarter (25.8%) of its children living in poverty (families in receipt of out of work benefits or tax credits where their reported income is less than 60 per cent of the median income for the year 2010). had the second highest 2010 Local Authority percentage (25.8%) of its children living in poverty. three quarters of the children living in poverty were from lone parent households 2010. was above the Scottish average for percentage of its 2012 pupils registered for free school meals for both Primary (30.5%) and Secondary (20.2%). had 5,300 families in work that were in receipt of Working Tax Credits and Child Tax Credits in 2009/10, this was the sixth highest Local Authority percentage. had almost a third (32%) of its housing tenure as either housing stock or Registered Social Landlord, 2011. Page 2 of 16

3 Poverty Discussion Draft Dundee City Council Poverty Profile 2001 It is important to note that there is no official measurement of poverty for Scotland or the UK. It has been recommended those with a household income 60 percent of the median income should be used as the measure of income poverty and this is now the favoured measure of the UK government. This report uses a combination of data sources to try and best provide a profile of poverty that exists in Dundee City. These data sources are valid when identifying poverty within the Local Authority and have been referenced within recent poverty related publications. 3.1 Scottish Index of Multiple Deprivation 2012 The report uses information from the Scottish Index of Multiple Deprivation 2012, which was produced by the Scottish Government, and the Income Domain which are best suited to identifying poverty levels within Dundee City. "Multiple Deprivation is a broader concept than poverty. There may be more merit in using the income deprivation domain as a more accurate proxy for poverty." (Mckendrick, J, Mooney, G, Dickie, J, Kelly, P, 2011) 3.2 Benefit and Tax Credit Data Sets "There is some merit in using information on benefit claimants to estimate poverty." Source: Mckendrick, J, Mooney, G, Dickie, J, Kelly, P, 2011 Much use is made of benefit information in identifying those who are not in employment and receiving benefits as their main source of income. Other benefit information is used to identify those who are in work but are on low income from employment. These data sets are used to identify the number of low income households. Combined with data on child tax credits, the number of children living in low income households can also be discussed. "Tax credit data is published by HM Revenue and Customs and could be used to estimate the level of in-work poverty for children. Helpfully, HM Revenue and Customs publishes the data alongside counts of out-of-work claimants. Together, this provides a more complete poverty count for children (counting in-work low-income and out-of-work families)" Source: Mckendrick, J, Mooney, G, Dickie, J, Kelly, P, 2011 "the 'number of children living in households that are dependent on out-of-work benefits or child tax credit more than the family element...as one of the best child poverty proxy indicators available at local authority level" Source: Scottish Government The use of Local Authority data sets of School Entitlements to free school meals is also explicitly mentioned as a useful approach to identifying levels of poverty within the authority. "The proportion of those eligible for local welfare benefits - such as free school meals, school clothing grants or educational maintenance allowance - could also be useful as proxies for local poverty." Source: Scottish Government Page 3 of 16

4 Dundee City Council Overview Draft Dundee City Council Poverty Profile 2001 Dundee is Scotland s fourth largest city the most recent estimate of Dundee s population is 145,570 (General Register Office for Scotland (GROS) 2011 Mid-year Population Estimate). Dundee has a sizeable student population, and is home to the University of Dundee, the University of Abertay Dundee and Dundee College. The Dundee City Council area covers 6,300 hectares (24 square miles) and is, geographically, the smallest local authority area in Scotland. It is bordered by Perth and Kinross Council to the west and Angus Council to the north and east. The former Tayside Regional Council area previously covered all three councils, and Dundee continues to serve as the regional centre for this area and north-east Fife, with an estimated catchment population of some 400,000 people. Map 1: Dundee City Council - Electoral Wards and Community Regeneration Areas Dundee City has eight electoral wards and these are shown in Map 1 by the areas with the red boundary and labelled in the larger red font. Map 1 also shows the six Community Regeneration Areas within Dundee City, these are shaded separate colours and labelled with the smaller black font. Table 1: Dundee City 2011 Demographic Profile Age Group Dundee City Tayside Health Board Scotland Total Population 145,570 405,721 5,254,800 Children (%) 16.55 16.89 17.38 Working Age (%) 63.25 60.77 62.79 Pensionable Age (%) 5.8 22.33 19.83 Page 4 of 16

5 Poverty Topic Indicators 5.1 Scottish Index of Multiple Deprivation 2012 According to the Scottish Government: "The Scottish Index of Multiple Deprivation (SIMD) 2012 identifies small area concentrations of multiple deprivation across all of Scotland in a fair way. The SIMD can be used to identify Scotland's most deprived small areas on the overall index and each individual domain, commonly by applying a cut off such as 10%, 15% or 20%. The cut off should be informed by whether it aims to target areas with the very highest concentrations of deprivation or to be wider ranging" Source: Scottish Government 1 Chart 1: Population Living in the 15% Most Deprived Data Zones of SIMD 2012 The SIMD 2012 stated that of the 144,290 people estimated to be living in Dundee City 42,125 people lived in data zones ranked within the 15% Most Deprived in Scotland. This is just under 30% of the population and Chart 1 shows that of all 32 Local Authorities, Dundee City has the third largest percentage of its population living in the 15% Most Deprived areas. Dundee City has 179 data zones and of these 55 are ranked to be within the 15% Most Deprived in Scotland according to the SIMD 2012. Page 5 of 16

5.1.1 Income Deprivation Draft Dundee City Council Poverty Profile 2001 Chart 2: Percentage of Population That Are Income Deprived, SIMD 2012 The SIMD 2012 stated that of the 144,290 people estimated to be living in Dundee City 25,690 are classed as 'income deprived'. This is just under 20% of the population and Chart 2 shows of all 32 Local Authorities, Dundee City has the fifth largest percentage of its population classed as income deprived. In the previous SIMD (2009) Dundee City was estimated to have just over 20% of its population classed as income deprived and was ranked fourth highest amongst the Local Authorities. 5.1.2 Employment Deprivation Chart 3: Percentage of Population That Are Employment Deprived, SIMD 2012 The SIMD 2012 Employment Deprivation Domain estimated that in Dundee City there are 15,465 people classed as 'employment' deprived'. With a working age population estimated at 91,285 this is just over 15% of the working age population and Chart 3 shows this statistic for all 32 Local Authorities, Dundee City has the fifth largest percentage of its working age population classed as 'employment deprived'. In the previous SIMD (2009) Dundee City had the fourth highest percentage employment deprivation. Page 6 of 16

5.2 Economic Activity 5.2.1 Jobseekers Allowance Claimants Jobseeker's Allowance (JSA) is a contributory or income based, taxable benefit. JSA replaced Unemployment Benefit and Income Support for unemployed people in October 1996. Indicator information can be found in Appendix 1. Table 2: Jobseekers Allowance Claimants: Dundee and Scotland 2012Q03 Age Group Dundee City Scotland Percentage of populations aged 16-24 7.5 6.4 Percentage of populations aged 25-49 6.6 4.2 Percentage of populations aged 50 to 64 3.1 2.1 Percentage of working age population 5.8 4 Table 2 shows at late 2012, compared to the national average, Dundee City had a higher percentage of its working age population claiming jobseekers allowance. This also applies to all the sub age group categories. JSA claimants in the 50 to 64 years category was closest to the Scottish average, and claimants in the 25 to 49 years category had the biggest difference from the Scottish average. 5.2.2 Working Age Population Claiming Key Benefits Working Age Client Group Data refers to numbers of Working Age Benefit Claimants categorised by their statistical group. The groups contained within this grouping can be found in the indicator information in Appendix 1. Table 3: Population Claiming Key Benefits: Dundee and Scotland 2012Q03 Age Group Dundee City Scotland Percentage of populations aged 16-24 14.9 13.5 Percentage of populations aged 25-49 21.8 15.6 Percentage of populations aged 50 to 64 25.1 19.1 Percentage of working age population 21.1 16.3 Table 3 shows at late 2012, compared to the national average, Dundee City had a higher percentage of its working age population claiming Key Benefits. This also applies to all sub age group categories. Percentage claimants in the 16 to 24 years category was closest to the Scottish average. There was a considerable difference between the figures for the age groups of 25 to 49 years, and the 50 to pensionable age. Page 7 of 16

5.2.3 Incapacity Benefit or Severe Disablement Allowance Claimants Incapacity Benefit (IB) or Severe Disablement Allowance (SDA) are benefits that are paid to those who are assessed as being incapable of work and who meet the appropriate contribution conditions. Table 4: Population Claiming Incapacity Benefit or Severe Disablement Allowance: Dundee and Scotland 2012Q03 Age Group Dundee City Scotland Percentage of populations aged 16 plus 4.3 3.2 Table 4 shows that Dundee City has a greater percentage of its population (16 years +) claiming IB or SDA than the Scottish average figure. Indicator information can be found in Appendix 1. Page 8 of 16

5.3 Income 5.3.1 CACI Paycheck Data "PayCheck profiles all 1.6 million postcodes in the UK using information on over 4 million households from lifestyle surveys and Census and Market Research data" Source: CACI Paycheck Chart 4 shows the percentage of households that are in each household 5k income category for Dundee City compared to the Scotland as a whole. Chart 4: Gross Household Income: Dundee and Scotland, CACI Paycheck 2012 Source: CACI Paycheck 2012 It can be seen from Chart 4 that there is a watershed at the 20-25k mark. The chart shows that for all income groups between and including 0-5k and 20-25k Dundee City has a higher percentage of households in these categories than the national share. The biggest differences between the Dundee City and Scotland in Chart 4 can be seen in the lower amount categories of 0-5, 5-10k, 10-15k and 15-20k where Dundee City has a greater percentage of households in these lower income categories. Table 5 shows the mean incomes found within the CACI paycheck data for Dundee City within a Scottish and UK perspective. Table 5: Mean Household Income: Dundee, Scotland, Great Britain 2012 Area Mean Income Dundee City 30,984 Scotland 34,569 Great Britain 35,992 Source: CACI Paycheck 2012 Table 5 shows that the average mean income of Dundee City is 3,585 less than the Scottish figure, which is a difference of 11.6%. The Dundee City mean income is further behind the UK figure by 5,008 which is a difference of 16.2% Page 9 of 16

5.4 Child Poverty Draft Dundee City Council Poverty Profile 2001 5.4.1 Children in 15% Most Deprived SIMD and Income Domain 2012 Chart 5 shows for each Local Authority, the percentage of children (0-15 years) that are estimated to live in the data zones ranked within the 15% most deprived according to the SIMD 2012. With an estimated 8,888 children Dundee City is the Local Authority with the third highest percentage of its children (36.9%) living in areas within the 15% Most Deprived in Scotland. Chart 5: Percentage of Children Living in 15% Most Deprived SIMD 2012 Chart 6 shows for each Local Authority, the percentage of children (0-15 years) that are estimated to live in the data zones ranked within the 15% most income deprived according to the SIMD 2012. With an estimated 8,562 children Dundee City is the Local Authority with the second highest percentage of its children (35.5%) living in areas within the 15% most income deprived in Scotland. Chart 6: Percentage of Children Living in 15% Most Income Deprived SIMD 2012 Page 10 of 16

5.4.2 Percentage of Children Living in Poverty Chart 7 shows the proportion of children living in families in receipt of out of work benefits or tax credits where their reported income is less than 60 per cent of the median income for the year 2010. The proportion of children in poverty is calculated as the number of children in families in receipt of either out of work benefits, or tax credits where their reported income is less than 60 per cent median income divided by the total number of children in the area. The HMRC data states that there are approximately 6,965 children living in poverty as defined above. Chart 7 shows that Dundee City has over a quarter (25.8%) of its children living in poverty and this is the second highest Local Authority within Scotland behind Glasgow City. Dundee City is above the Scottish average of 18.6% Chart 7: Children in Poverty by Local Authority, 2010 Source: HMRC - http://www.hmrc.gov.uk/statistics/child-poverty-stats.htm#1 The HMRC data provides further analysis of children living in poverty by family type, number of children in the family and by age. Chart 8, 9 and 10 shows the data for Dundee City respectively. Chart 8: Children in Poverty by Lone Parent / Couple Chart 9: Children in Poverty by Family Size Chart 10: Children in Poverty by Age Chart 8 shows that over 3 quarters of all Dundee children living in poverty are from lone parent households. Chart 9 shows that just under two thirds of all Dundee children living in poverty live in 1 or 2 child families. Chart 10 shows that just under two thirds of all Dundee children in poverty are aged 10 and under. Page 11 of 16

5.4.3 School Entitlements - Pupils Registered for Free School Meals - 2012 Charts 11 and 12 show the percentage of primary and secondary school pupils registered in 2012 with local authorities for free school. Dundee City has the second and fifth highest (primary and secondary respectively) percentage of its pupils registered for free school meals both above the Scottish average. The Scottish average for primary was 21.9%, and for secondary was 15.4% Chart 11: Percentage of Pupils Registered for Free School Meals - Primary Schools 2012 Source: Scottish Government 3, school.stats@scotland.gsi.gov.uk Chart 12: Percentage of Pupils Registered for Free School Meals - Secondary Schools 2012 Source: Scottish Government 3, school.stats@scotland.gsi.gov.uk Page 12 of 16

5.5 In Work Poverty 5.5.1 Working Tax Credits Tax credits are a flexible system of financial support designed to deliver support as and when a family needs it, tailored to their specific circumstances. They are part of wider government policy to provide support to parents returning to work, reduce child poverty and increase financial support for all families. It is important to note that it provides in-work support for people on low incomes, with or without children. Chart 13: All Families in Work Receiving WTC and CTC, Percentage of all Households, 2009/10 In 2009/10 Dundee City had 5,300 families in work that were in receipt of Working Tax Credits (WTC) and Child Tax Credits (CTC). The GROS estimated that there were 70,401 households in Dundee in 2009, so the percentage in receipt of WTC and CTC was 7.5%. Chart 13 shows that this was the 6th highest Local Authority proportion and 1% above the Scottish average of 6.5%. There are many people from families that are in work who are have low incomes and are dependant upon these tax credits to increase their low household incomes. Page 13 of 16

5.6 Housing Table 6 contains the tenure composition for Dundee City and the eight electoral wards. Almost half the residential properties are owner occupied, both Local Authority housing and privately rented properties are 20% each and those properties owned by Registered Social Landlords are just over 10%. Table 6 shows how the tenure composition differs greatly within the electoral wards. Dundee City Council Housing Stock ranges from almost 40% in East End Ward to less than 5% in the Ferry. Owner Occupied properties are generally a high proportion of the tenures but range from over 80% in The Ferry to 33% in Maryfield. Privately rented properties are highest in Maryfield which is to be expected as the most of the flats within the City Centre are privately rented out. The West End also has a high proportion of privately rented residential properties, this can be attributed to a high number of students from the Universities Registered Social Landlord properties are most concentrated in the North East ward and least common in The Ferry ward. Table 6: Dundee City and Electoral Ward Housing Tenure Information WARD Dundee City Housing Stock Owner Occupied Privately Rented Registered Social Landlord Total Coldside 30% 38% 23% 10% 100% East End 39% 48% 6% 8% 100% Lochee 34% 48% 9% 8% 100% Maryfield 9% 33% 44% 15% 100% North East 14% 53% 5% 28% 100% Strathmartine 19% 60% 7% 14% 100% The Ferry 4% 82% 12% 3% 100% West End 8% 38% 40% 14% 100% DCC 20% 49% 19% 12% 100% Source: DCC datasets: CAG, Housing Stock, Landlord Registration, and RSL datasets - May 2011. Page 14 of 16

6 Appendix 1 - Indicator Information Jobseeker's Allowance (JSA) is a contributory or income based, taxable benefit. JSA replaced Unemployment Benefit and Income Support for unemployed people in October 1996. It is payable to people under pensionable age who are available for, and actively seeking work with some exclusions. Working Age Client Group Data refers to numbers of Working Age Benefit Claimants and is derived from 100% source; the Work and Pensions Longitudinal Study (WPLS). The dataset provides counts of benefits claimants categorised by their statistical group. Each claimant can only be assigned to one of the 8 groups, in the following priority order: Job Seekers Allowance claimants; Incapacity Benefit or Severe Disablement Allowance claimants; Lone Parents Income support claimants with a child under 16 and no partner; Carers Allowance claimants; Others on Income Related Benefit Other income support (including IS Disability premium) or Pension Credit claimants under State Pension age; Disabled Disability Living Allowance (DLA); Bereaved Widows Benefit, Bereavement Benefit or Industrial Death Benefit claimants; Unknown DLA data are not available until May 2002 and prior to this, claimants who would have appeared in the disabled category or below are classed as unknown. Incapacity Benefits include Severe Disability Allowance (SDA) and Incapacity Benefit (IB). SDA was introduced in November 1984, claimants were aged between 16 and 65 when they made their claim and been incapable of work for at least 28 weeks. There is no upper age limit for receiving the allowance once it has been awarded. Since April 2001 it has not been possible to make a new claim for SDA. IB replaced Sickness and Invalidity Benefits from April 1995. It is paid to people who are assessed as being incapable of work and who meet the appropriate contribution conditions Page 15 of 16

7 References CACI Paycheck, http://www.caci.co.uk/paycheck.aspx HMRC, Child and Working Tax Credits Statistics Finalised Awards Geographical Analyses http://www.hmrc.gov.uk/stats/personal-tax-credits/cwtc-geog-stats.htm Mckendrick, J, Mooney, G, Dickie, J, Kelly, P, 2011, "Poverty in Scotland 2011", 2011, CPAG Scottish Government, - www.scotland.gov.uk/resource/doc/933/0088607.xls Scottish Government 1, Scottish Index of Multiple Deprivation 2009v2, http://www.scotland.gov.uk/topics/statistics/simd Scottish Government 2,, 'Relative poverty across Scottish Local Authorities' http://www.scotland.gov.uk/publications/2010/08/26155956/41 Scottish Government 3, School Meals in Scotland, 2012 http://www.scotland.gov.uk/topics/statistics/browse/school-education/schoolmealsdatasets SNS, Scottish Neighbourhood Statistics, www.sns.gov.uk Dundee City Datasets: Corporate Address Gazetteer (CAG) managed by Joanna Wilkie. Council Housing Stock - Housing Investment Unit May 2011 managed by Paul Gruenwald. Landlord Registration Scheme data managed by Private Sector Support Unit - Licensing dept. Registered Social Landlord data obtained from all Housing Associations and monitored new builds. Page 16 of 16

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