In-Work Poverty in Scotland: What Employers Need to Know 

A Review of the Evidence on Causes, Impacts, and Responses

One in seven working households in Scotland lives in poverty.

Despite being in employment, many individuals and families are struggling to make ends meet, facing financial stress that affects their wellbeing, productivity, and quality of life.

At Business in the Community (BITC) Scotland, we believe employers have a vital role to play in addressing in-work poverty. While they are not expected to solve the issue alone, the evidence is clear: in-work poverty is not just a social issue—it’s a business issue.

Why it matters

Financial stress among employees can lead to:

In today’s climate—marked by labour shortages, rising costs, and increased scrutiny around workplace practices—job quality is now central to attracting and retaining talent, and to fulfilling broader ESG (Environmental, Social, and Governance) responsibilities.

With Scotland’s ambition to become a Fair Work Nation by 2025, there is a real need for employers to take visible, meaningful action. This is not only a moral imperative but also a strategy for long-term workforce sustainability and resilience.

About the report

This evidence review explores:

It marks the first step in a three-year award supported by The Robertson Trust’s Programme Awards through their Work Pathways theme. The aim of this Programme Award is to support projects with the potential for big change that lasts through the priority focus on improving job quality to tackle in-work poverty in Scotland.

From September, BITC Scotland will convene a year-long Practical Lab for member businesses, supporting them to move from insight to action.