Poverty in Scotland is becoming more entrenched

More than half a million Scots, including 100,000 children, have been living in severe poverty, according to the Scottish government. Relative poverty had fallen over the past decade but a greater proportion of those struggling to get by were now facing either severe or extreme poverty. People are classed as being in severe poverty if their household income is less than 50% of the UK average. From 2012-13, when anyone whose household income was below £11,500 would have been classed as living in severe poverty. Extreme poverty is defined as being 40% or less of the UK median annual household income - or less than £9,200 in 2012-13.

A total of 510,000 individuals - or 10% of the population - were living in severe poverty in 2012-13, the report said. This included 330,000 working-age adults, 100,000 children and 80,000 pensioners.

But when housing costs were factored in, the number facing severe poverty increased to 710,000. This included 500,000 who were in extreme poverty after paying their rent or mortgage. A total of 370,000 working-age adults, 90,000 children and 40,000 pensioners were all affected by this.

The report stating: "There have been decreases in real earned income, a rise in insecure employment (including zero hour contracts) and increases in the numbers in low pay. The combination of these factors is likely to increase the numbers living in severe and extreme poverty, and reduce the chances of those in low-paid work to lift their families out of poverty." The report concluded: "In short, poverty is changing; work is no longer a guarantee of a life free of poverty; people in poverty face increasing costs; and those in receipt of benefits and tax credits - which of course includes many in work - are finding their incomes squeezed." More than one in four Scots get paid less than the living wage.

The research also said that "welfare reform is another key factor", adding: "For low-income working families reliant on benefits and tax credits, cuts combined with changes in eligibility have seen household income decrease in 2012-13." It warned that more welfare changes are to come, stating: "The majority of the decrease in welfare expenditure is expected to be in the two years to 2015-16. Continuous, cumulative real-terms cuts in benefit levels are expected, affecting both working households and households not in employment."