Income and economy: policy context

Government economic and social policy can play its part in improving not only the economy but also health. The new UK Government believes that tackling poverty among working-age families and their children requires radical reform of the welfare system. These policies, which aim to merge out-of-work and in-work benefits, impose stricter conditions on those receiving benefits and ensure "all amounts of work will be more financially rewarding than inactivity", are outlined in Universal Credit: welfare that works. Under the Child Poverty Act 2010, both the UK and Scottish Government are legally required to substantially reduce child poverty. The Child Poverty Strategy for Scotland was published in March 2011.

In terms of national economics, the argument that Scotland's health needs to improve as one of the prerequisites for a successful economy has been made by many in Scotland. The Government Economic Strategy (2007) is explicit about the contribution that good health can make to the Scottish economy, for instance through higher productivity and having more people in employment instead of on Incapacity Benefits. The Equally Well Implementation Plan, 2008 (2008) also outlines wider economic action (e.g. maximising the impact of the public sector in creating employment opportunities for marginalised groups) that may help create a wealthier Scotland, highlighting the interaction between public health and the economy. Current Scottish Government policy emphasises working to narrow inequalities and investing in life circumstances to improve health, building on the work of previous administrations.