Dundee City Poverty Profile

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Dundee City Poverty Profile Draft Copy 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 2009... 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 2009... 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... 7 5.3 Income... 8 5.3.1 CACI Paycheck Data... 8 5.3.2 Scottish Household Survey... 9 5.4 Child Poverty... 10 5.4.1 Children in 15% Most Deprived SIMD and Income Domain 2009... 10 5.4.2 Children Living in Low Income Households... 11 5.4.3 School Entitlements - Pupils Registered for Free School Meals... 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 of SIMD 2009... 5 Chart 2: Percentage of Population That Are Income Deprived, SIMD 2009... 6 Chart 3: Percentage of Population That Are Employment Deprived, SIMD 2009... 6 Chart 4: Gross Household Income: Dundee and Scotland, CACI Paycheck 2009... 8 Chart 5: Percentage of households in relative poverty in Dundee City: 2002 to 2008 (4 year rolling average)... 9 Chart 6: Percentage of Children Living in 15% Most Deprived SIMD 2009... 10 Chart 7: Percentage of Children Living in 15% Most Income Deprived SIMD 2009... 10 Chart 8: Children in Low Income Households by Local Authority, 2008/09... 11 Chart 9: Percentage of Pupils Registered for Free School Meals - Primary School... 12 Chart 10: Percentage of Pupils Registered for Free School Meals - Secondary School... 12 Chart 11: All Families in Work Receiving WTC and CTC, Percentage of all Households, 2008/09... 13 Tables Table 1: Dundee City Demographic Profile... 4 Table 2: Jobseekers Allowance Claimants: Dundee and Scotland 2009Q04... 7 Table 3: Population Claiming Key Benefits: Dundee and Scotland 2009Q04... 7 Table 4: Population Claiming Incapacity Benefit or Severe Disablement Allowance: Dundee and Scotland 2009Q04... 7 Table 5: Mean Household Income: Dundee, Scotland, Great Britain 2009... 8 Table 6: Mean, median, and quartiles for annual net equivalised household income before housing costs 9 Table 7: 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. 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 (28.8%) living in the 15% Most Deprived areas. had the fourth largest percentage of its population (20.4%) classed as income deprived. had the fourth largest percentage of its working age population (15.6%) classed as 'employment deprived'. had a higher percentage of its working age population (4.7%) claiming jobseekers allowance than the Scottish average (3.5%) (2009 Quarter 4). had a higher percentage of its working age population (22.3%) claiming Key Benefits than the Scottish average (15.4%) (2009 Quarter 4). had a greater percentage of its population aged 16 yrs + (7.5%) claiming Incapacity Benefit or Severe Disablement Allowance than the Scottish average figure. (5.8%) (2009 Quarter 4). had a greater percentage of households (44.3%) in these lower income categories 0-20k than the Scottish average(36.9%) (2009). has an average mean income that is 11.6% less than the Scottish figure, and 16.8% less than the UK. had the highest percentage of households in relative poverty (26% to 24%))across Scotland between 2002 and 2008. had the third highest percentage of its children (35.3%) living in areas within the 15% Most Deprived in Scotland. - SIMD 2009. had the second highest percentage of its children (38.6%) living in areas within the 15% most income deprived in Scotland - SIMD 2009. had over half (56%) of its children living in households of low income. had the third highest percentage (56%) of its children living in low income households in all Scottish Local Authorities. had the second highest percentage of its pupils registered for free school meals and well above the Scottish average - for both Primary (31%) and Secondary (22.1%). had 5,170 families in work that were in receipt of Working Tax Credits and Child Tax Credits in 2008/09, this was the 7th highest Local Authority percentage. had almost a third (32%) of its housing tenure as either housing stock or Registered Social Landlord. Page 2 of 16

3 Poverty Discussion 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 2009 The report uses information from the Scottish Index of Multiple Deprivation 2009, which was produced by the Scottish Government, and the Income Domain which are best suited to identifying poverty levels within Dundee City. All SIMD 2009 data mentioned within this document is SIMD 2009v2 data. "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 inwork 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 inwork 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 It is important to note that on April 5th 2011, the Department for Work and Pensions (DWP) incorporated 44 tax and benefit changes to the system. Future poverty profiles that use data from this date onwards, will not allow for robust direct comparisons to previous profiles. Page 3 of 16

4 Dundee City Council Overview Dundee is Scotland s fourth largest city the most recent estimate of Dundee s population is 144,290 (General Register Office for Scotland (GROS) 2010 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 Demographic Profile Local Authority:Dundee City Health Board:Tayside Title Scotland Population Total Population: 2010 144,290 402,641 5,222,100 Total Population - Children (%): 2010 16.56 16.98 17.46 Total Population - Pensionable Age (%): 2010 20.7 22.5 19.96 Page 4 of 16

5 Poverty Topic Indicators 5.1 Scottish Index of Multiple Deprivation 2009 According to the Scottish Government: "The Scottish Index of Multiple Deprivation (SIMD) 2009 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 of SIMD 2009 The SIMD 2009 stated that of the 142,150 people estimated to be living in Dundee City 40,958 people lived in datazones 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 datazones and of these 54 are ranked to be within the 15% Most Deprived in Scotland according to the SIMD 2009. Page 5 of 16

5.1.1 Income Deprivation Chart 2: Percentage of Population That Are Income Deprived, SIMD 2009 Draft Dundee City Council Poverty Profile 2001 The SIMD 2009 stated that of the 142,150 people estimated to be living in Dundee City 29,035 are classed as 'income deprived'. This is just over 20% of the population and Chart 2 shows of all 32 Local Authorities, Dundee City has the fourth largest percentage of its population classed as income deprived. 5.1.2 Employment Deprivation Chart 3: Percentage of Population That Are Employment Deprived, SIMD 2009 The SIMD 2009 Employment Deprivation Domain estimated that in Dundee City there are 23,900 people classed as 'employment' deprived'. With a working age population estimated at 88,929 this is just over 15% of the working age population and Chart 3 shows that of all 32 Local Authorities, Dundee City has the fourth largest percentage of its working age population classed as 'employment deprived'. 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 2009Q04 Age Groups Dundee City Scotland Percentage of populations aged 16-24 6.4 6.1 Percentage of populations aged 25-49 5.7 4 Percentage of populations aged 50 to pensionable age 3.2 2.4 Percentage of working age population 4.7 3.5 Table 2 shows at the end of 2009, 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 16 to 24 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 2009Q04 Age Groups Dundee City Scotland Percentage of populations aged 16-24 14.6 13.3 Percentage of populations aged 25-49 22.6 16.5 Percentage of populations aged 50 to pensionable age 29.8 23.3 Percentage of working age population 22.3 15.4 Table 3 shows at the end of 2009, compared to the national average, Dundee City had a higher percentage of its working age population claiming Key Benefits. This greater-than percentage 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. 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 2009Q04 Age Groups Dundee City Scotland Percentage of population aged 16 plus 7.5 5.8 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 7 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 2009 Source: CACI Paycheck 2009 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 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 2009 Area Mean Income Dundee City* 29,368 Scotland 33,207 Great Britain 35,299 Source: CACI Paycheck 2009 Table 5 shows that the average mean income of Dundee City is 3,839 less than the Scottish figure, which is a difference of 11.6%. The Dundee City mean income is further behind the UK figure by 5,931 which is a difference of 16.8% Page 8 of 16

5.3.2 Scottish Household Survey The Scottish Household Survey (SHS) is a large household survey which interviews around 30,000 Scottish families every two years. Chart 5: Percentage of households in relative poverty in Dundee City: 2002 to 2008 (4 year rolling average) Source: Scottish Government 2 It is important to note that the latest Scottish Household Survey only details relative poverty until 2008. Data from 2008 onwards would be expected to show an increase in relative poverty due to the global/national economic conditions that have occurred. Chart 5 shows that between 2002 and 2008 a greater percentage of its households in relative poverty than the Scottish average. Dundee was the local authority with the highest relative poverty rates across Scotland. Over this period the percentage of households in relative poverty in Dundee fell from around 26 percent to around 24 percent. Table 6 shows the SHS 2008 household income data and although the figures are slightly different from those presented by the CACI dataset in Section 4.3.1, the trend of the Dundee City having a lower mean and median income is present. Table 6: Mean, median, and quartiles for annual net equivalised household income before housing costs Net equivalised household income before housing costs Q1 Median Q3 Mean Dundee City 13,200 18,900 25,500 20,900 Aberdeen City 16,000 23,800 33,900 27,800 Edinburgh, City of 14,900 22,900 32,300 25,900 Glasgow City 13,100 19,000 27,800 22,100 SCOTLAND 14,200 21,300 30,300 24,100 Source: Scottish Household Survey 2008 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 2009 Chart 6 shows for each Local Authority, the percentage of children (0-15 years) that are estimated to live in the datazones ranked within the 15% most deprived according to the SIMD 2009. With an estimated 8,314 children Dundee City is the Local Authority with the third highest percentage of its children (35.3%) living in areas within the 15% Most Deprived in Scotland. Chart 6: Percentage of Children Living in 15% Most Deprived SIMD 2009 Chart 7 shows for each Local Authority, the percentage of children (0-15 years) that are estimated to live in the datazones ranked within the 15% most income deprived according to the SIMD 2009. With an estimated 9,107 children Dundee City is the Local Authority with the second highest percentage of its children (38.6%) living in areas within the 15% most income deprived in Scotland. Chart 7: Percentage of Children Living in 15% Most Income Deprived SIMD 2009 Page 10 of 16

5.4.2 Children Living in Low Income Households Draft Dundee City Council Poverty Profile 2001 Chart 8 shows the percentage of children living in low income households (those that are dependent on out of work benefits OR Child Tax Credit more than the family element for 2008/09. For tax credit and benefit purposes a 'child' is a person aged 0-15 years inclusive plus those aged 16-19 inclusive in full-time non-advanced education. In 2008/09 Dundee City had 17,830 children in low income households. This is 56% of the 31,725 under 19 year olds that the GROS estimated were in Dundee City Chart 8: Children in Low Income Households by Local Authority, 2008/09 Source: HMRC Chart 8 shows that within a national context Dundee City has the third highest percentage of its children living in low income households, behind Glasgow City and West Dunbartonshire. Dundee City is also well above the Scottish average of 47% The number of children living in households that are dependent on out of work benefits OR Child Tax Credit more than the family element is from Table 2 of HMRC Child and Working Tax Credits Statistics Finalised Awards Geographical Analyses The source data are available here: http://www.hmrc.gov.uk/stats/personal-tax-credits/cwtc-geog-stats.htm The estimated population of 0-19 year olds is from Table 2 of General Register Office for Scotland's mid year population estimates. Source data available: http://www.gro-scotland.gov.uk/statistics/theme/population/estimates/mid-year/index.html Page 11 of 16

5.4.3 School Entitlements - Pupils Registered for Free School Meals Charts 9 and 10 show the percentage of pupils within local authorities registered for free school meals for primary and secondary schools in 2010. For both primary and secondary Dundee City has the second highest percentage of its pupils registered for free school meals and well above the Scottish average. Chart 9: Percentage of Pupils Registered for Free School Meals - Primary School Source: Scottish Government 3, school.stats@scotland.gsi.gov.uk Chart 10: Percentage of Pupils Registered for Free School Meals - Secondary School 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 11: All Families in Work Receiving WTC and CTC, Percentage of all Households, 2008/09 In 2008/09 Dundee City had 5,170 families in work that were in receipt of Working Tax Credits (WTC) and Child Tax Credits (CTC). The GROS estimated that there were 69,589 households in Dundee in 2008, so the percentage in receipt of WTC and CTC was 7.4%. Chart 11 shows that although this was the 7th highest Local Authority proportion, it was still above the Scottish average. 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 7 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 7 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 7: Dundee City and Electoral Ward Housing Tenure Information WARDNAME Dundee City Housing Stock Owner Occupied Privately Rented Registered Social Landlord 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. Total 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 Governmen t2,, 'Relative poverty across Scottish Local Authorities' http://www.scotland.gov.uk/publications/2010/08/26155956/41 Scottish Government3, School Meals in Scotland, 2010 http://www.scotland.gov.uk/publications/2010/07/06095048/0 Scottish Household 2008, http://www.scotland.gov.uk/topics/statistics/16002/publications 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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