Analysis of government figures has revealed that average wages in Dumfries and Galloway and the Scottish Borders are the second and third lowest in Scotland and 13 per cent below the national average.

The joint report by the Centre for Social Justice and Enlighten, Voices from the Margins, warns that rural poverty in Scotland is both “persistent and under-recognised”. The problem is structural and stems from economic dependence on a narrow range of sectors, demographic pressures, fragile housing markets and the cumulative effect of service centralisation.

Scots in these rural areas also suffer from “fuel poverty” at a much higher rate than the national average – defined by the Scottish Government as those spending over £1 in every £10 earned on energy. This affects over 30% of households in both areas, compared with 24% nationally.

The report criticises how official statistics, such as the standard measures of poverty used by the Scottish Government, like the Scottish Index of Multiple Deprivation, inherently underestimate rural hardship and the scale of the challenge. 

The report says that “the region’s employment rate conceals deep challenges of underemployment, low paid jobs and insecure seasonal work, especially in tourism and agriculture.” 

It goes on to highlight “the day-to-day realities of rural poverty … families forced to choose between heating and eating, young people travelling hours to access further education and the cumulative stress of debt, mental health problems and insecure housing.” 

The CSJ’s work with local grassroots charities has highlighted four clear barriers in the fight against poverty among rural Scots: 

• Distance and isolation, with sparse bus networks and high transport costs, access to work, training and health services severely restricted.
• The fragility of local labour markets, with dependence on low-wage sectors with limited opportunities for career progression.
• Gaps in support infrastructure where families described falling through cracks as services retreated to urban centres.
• The strain on the small charities themselves, who are often the last line of defence but operate on precarious funding and volunteer capacity.  

The CSJ and Enlighten have highlighted a number of key recommendations for the Scottish Government, including embedding “rural proofing” across all major policies, ensuring that health, education and childcare reforms are deliverable in low-density areas. The report also calls for fuel poverty programmes to be extended and tailored for off-grid households, as well as urgent investment in gigabit broadband and 4G/5G rollout.

The report comes as new data suggests rural Scotland is up for grabs in the political battleground ahead of May’s Holyrood vote.

A December 2025 survey of more than 3,000 rural Scots found decision-makers to be increasingly “out of touch with rural realities”, with nearly three-quarters of rural residents reporting that politicians do not grasp the needs of the countryside, rising to almost eight in ten in remote areas.

Kenneth Ferguson, head of Scotland at the CSJ, said: “If Scotland is serious about addressing poverty beyond its cities, then rural proofing, investment in housing and connectivity and the empowerment of community anchor organisations must be central to national strategy.

“By adopting our recommendations, Dumfries & Galloway and the Scottish Borders can become a byword for rural innovation, demonstrating how small towns and rural communities can not only survive but thrive. With elections looming, there is a prize for any party committed to delivering real change across rural Scotland.”

Chris Deerin, director of Enlighten, said: “This is a comprehensive report which should command the attention of all politicians ahead of the Holyrood elections. Too often we think of poverty as something which happens in urban areas and the central belt. But people who live in rural areas know that to be false, particularly when we think of fuel poverty.

“Aspects of rural poverty could, we believe, be alleviated by a more bespoke approach which accounted for the critical differences between rural and urban areas. We are calling for politicians to embrace localism - the unfinished business of devolution - to allow rural Scotland to survive and thrive.”