NEWS - Women more likely than men to be in poverty due to public debt

New research from our Professor Morag Treanor, in partnership with Aberlour Children's Charity, Trussell Trust and One Parent Families Scotland, exposes the gender divide in families in Scotland being pushed into poverty by arrears.

Introduction

Professor Morag Treanor, Research Lead of our Children's Lives and Outcomes theme, said the work had been possible because of the depth and quality of the records kept by Citizens Advice Scotland and debt charity StepChange Debt Charity.

Analysis of anonymised records of 71,000 people seeking debt advice in Scotland revealed 57% were women and they owed most in public debt, like council tax and rent. In particular, single mothers and those living in households where a child or adult is disabled were particularly at risk with the psychological toll of debt often damaging their physical and mental health, propelling them deeper into financial hardship.

What the research revealed

The research suggests caring responsibilities can often mean reduced income, less financial resilience and greater risk of poverty, while deductions from benefits to pay arrears often changes difficult household budgets to become impossible. The research revealed £221 million is deducted from payments for just one benefit, universal credit, each year in Scotland.

Justina Murray, Aberlour Chief Executive, called for far greater awareness of the potential damage inflicted by public debt alongside far-sighted reform to ensure its collection does not deepen family poverty and gender inequality.

Our Professor Morag Treanor said

We have known for some time how the pursuit and collection of public debt inflicts further financial harm on some of our poorest families. This important research confirms that impact is felt most often by women and most often by those caring for children or other family members.

“It is clearly embedded in the lives of low-income women, deepening the inequalities they already face. Our public authorities should treat arrears as an emergency flare, a signal to intervene not to make things worse. There are far better, more humane, and less destructive ways to collect, or cancel, this kind of debt.

Calls to Action

High levels of arrears and indebtedness should be seen as an emergency flare for families. This research evidences the disproportionate way that public debt impacts on women, women led households and children.

This report calls for clear action to tackle the public debt crisis and help reduce child poverty and better support women and their families affected by public debt.