Poverty can lead to

Students from a disadvantaged background often earn less than their more affluent peers, even when they have graduated in the same subject, finds Steve Williams

t’s often said that a person’s background shouldn’t dictate their future. Unfortunately, it’s a sentiment that doesn’t seem to play out in reality.

Last year, figures from UCAS showed the gap between rich and poor students being granted university places was at a record level. The same analysis demonstrated that students who received free school meals are half as likely to enter higher education than wealthier peers.

Even when poorer students do make it through higher education, challenges persist. Our research, conducted on 300,000 graduates, found there’s an attainment gap in post-university life: students from the least advantaged backgrounds earn ten per cent less, on average, than more affluent contemporaries, six months after graduating from the same subject.

These studies illustrate that growing up in poverty can have a large bearing on adult life; but some findings suggest it goes even further. In 2016, the Bank of Italy used surnames to track the fortunes of families in Florence from the 1400s, finding that descendants of the same wealthy people tended to hold the top jobs in 2011.

That should give us plenty of food for thought in Scotland. While we live in a comparatively prosperous economy, recent Scottish Government figures found that, after housing costs, more than 25 per cent of children were living in relative poverty in 2015-2016 – a four per cent rise on the previous year.

Child poverty remains a very real issue and presents significant challenges to the futures of more than a quarter of Scotland’s young people. There may be more testing times ahead: separate Deloitte research shows that university graduates are less likely to be impacted by automation.

Addressing this lack of social mobility needs to be one of Scotland’s top priorities. The political events of the last 18 months have shown us that many hardworking, talented people believe they’ve been left behind by a system loaded against them.

Decisive action must be taken, and it’s our firm belief that improving access to education, ensuring employment equality, and equipping young people with the skills they need to succeed should be a central part of this strategy.

These values are the driving force behind our decision to partner with three Scottish children’s charities: Befriend a Child, Children 1st, and Glasgow Children’s Hospital Charity. We’ll provide pro bono support over the next three years, helping these organisations improve their services and support young people into education and employment as part of our One Million Futures campaign.

Educationalists, politicians, and policymakers have much to consider in addressing this challenge – but so too do businesses. We have the ability to tackle this issue head-on and make a positive impact, giving the least advantaged young people the skills and confidence they need.

Ignoring the problems of social mobility will only exacerbate one of the biggest issues facing our society – and we’ll all be much poorer for it. ● Steve Williams is senior partner for Scotland and Northern Ireland, Deloitte.