Strengthening the safety net

Action plan to ensure Scottish Welfare Fund reaches those in most need

Improvements to the way crisis support is delivered in Scotland are set out in a plan published yesterday.

The Scottish Welfare Fund provides a vital safety net which has paid out more than £380 million in emergency funds to more than half a million households over the last ten years.

The plan sets out 22 commitments to help the Fund better address unmet need and make decisions more consistent across the country. Actions include a simplified application form, clearer guidance and better promotion to those who may not currently be being reached, including older people.

Improved guidance on referrals to wider services such as debt and welfare advice will also aim to help people with their finances so they can avoid future crisis.  

Social Justice Secretary Shirley-Anne Somerville said: “Ten years on from the introduction of the Scottish Welfare Fund, it is time to make improvements to ensure it continues to provide lifeline support. These actions will help to ensure that no matter where people live, they can access support they are eligible for in their time of need.

“The current financial pressures facing many households and the hardship that brings has shone a spotlight on the need for such emergency funds, and as the independent review of the fund made clear in March, the inadequacy of UK Government welfare has contributed to increased demand.

“The publication of this plan demonstrates the Scottish Government’s dedication to strengthening our social security system and working to best meet the requirements of people in Scotland.”

The Scottish Welfare Fund Action Plan published in June 2023

Scotland in crisis

The amount given in crisis grants to those most in need has increased by more than a third, latest figures show. The Scottish Welfare Fund paid out a total of £3.2 million in crisis grants between July and September 2019 – 34% more than the same period the previous year.

The Scottish Welfare Fund is distributed by local authorities and provides Crisis Grants and Community Care Grants.

Crisis Grants help families on low incomes with unexpected expenses arising out of an emergency or a disaster. Community Care Grants help those on low incomes live independently in the community or to help people maintain their home in the face of exceptional pressure.

The most common reason families said they applied for emergency funding was because their benefits or other income had been spent – up 33% on the previous year.

Estimates suggest the UK Government’s social security spending in Scotland is set to reduce by £3.7 billion per year by 2021. In addition, the benefit freeze and benefit cap are now in their fourth year.

Social Security Secretary Shirley-Anne Somerville said: “This is the latest evidence that the UK Government’s swingeing benefit cuts are hitting the poorest in Scotland hardest.

“The large increase in people applying for emergency funding shows how much those on low incomes are struggling just to make ends meet.

“The Scottish Government will not stand by and let people who are already in need continue to face a reliance on food banks and the stress of debt and rent arrears.

“That’s why we are continuing to spend over £100 million each year to mitigate the worst effects of the UK Government welfare cuts – part of the £1.4 billion we spent last year to support low income households.

“This is money we should be able to invest elsewhere to help pull people out of poverty but we instead we need to use it to protect the most vulnerable in our communities.

“We are introducing the Scottish Child Payment to tackle child poverty head on which will start for eligible families with a child under six by Christmas. But there is no doubt that without the cuts inflicted on families by the UK Government this could go so much further.”

Scottish Welfare Fund has helped more than 347,000 ‘struggling’ Scottish households

poverty family JRF

Nearly £210 million has been paid to 347,045 low income households by the Scottish Welfare Fund since it was established in 2013, latest figures show.

Crisis grant applications to the fund for basic essentials such as food and heating increased by 12% from April to June compared to the same period last year.

In addition, for the first time exceptional pressure is the main reason for Community Care Grant applications. Previously, the biggest reason for these applications was helping people to stay in their community.

The fund, which enables local authorities to provide grants for people on low incomes, is part of the Scottish Government’s mitigation efforts for UK Government welfare cuts. Estimates suggest social security spending in Scotland is set to reduce by £3.7 billion per year by 2021.

Social Security Secretary Shirley-Anne Somerville said: “These are yet more signals of how much families are struggling.

“In the face of UK Government cuts and with the threat of a ‘no deal’ Brexit still alive – the risk is real that tens of thousands more people could be pushed into poverty in Scotland.

“The Scottish Government will not stand by and let people who are already struggling continue to face a reliance on food banks and the stress of debt and rent arrears.

“We will continue to spend at least £100 million each year to mitigate the worst effects of the UK government welfare cuts – part of the £1.4 billion we spent last year to support low income households.

“This is money we should be able to invest elsewhere to help pull people out of poverty but we instead we need to use to protect the poorest and most vulnerable in our country.

“And we are introducing the Scottish Child Payment to tackle child poverty head on. But there is no doubt that without the cuts inflicted on families by the UK Government this could go so much further.”

 

Crisis? What crisis?: More than 336,000 households aided through Scottish Welfare Fund

Scottish Welfare Fund annual spend hits £35 million.

poverty family JRF

People in crisis made more than 165,000 successful applications to the Scottish Welfare Fund in the last financial year, according to the latest statistics.

The Fund paid out £35 million, including £10.4 million in Crisis Grants to people in financial emergency, such as those struggling on low incomes or benefits  – a 14% increase on 2017-18. The money helped people with essentials such as food, heating costs and household items.

A further £24.8 million in Community Care Grants helped those facing extreme financial pressures with one-off costs for purchases including beds, washing machines and cookers.

The Scottish Welfare Fund is part of an annual package of over £125 million to mitigate against the impact of UK Government welfare cuts. Since its launch in April 2013, the Fund has paid out more than £200 million to support over 336,000 households, with a third of recipients being families with children.

Social Security Secretary Shirley-Anne Somerville said: “We would much rather these resources were invested in anti-poverty measures than protecting our people from another government’s cuts – a positon the UN Special Rapporteur on Poverty recently described as ‘outrageous and unsustainable’.

“The fact that so many households in Scotland are in need of emergency financial help is appalling, and a sad indictment of the UK Government’s record on austerity and welfare changes.

“As their welfare cuts continue to cause harm and damage, we continue to do our best to mitigate against them and provide financial support to low income families and carers through new social security benefits.”

In the UN Special Rapporteur on Poverty report published earlier this year, Professor Philip Alston praised Scotland’s “ambitious” schemes for addressing poverty, including the Fairer Scotland Action Plan and the Tackling Child Poverty Delivery Plan.

He also noted Scotland’s “promising social security system, guided by the principles of dignity and social security as a human right, and co-designed with claimants on the basis of evidence”

The Scottish Government’s response to the Special Rapporteur’s report shows UK Government welfare cuts have increased the risk of deprivation for low-income families across Scotland

The Scottish Welfare Fund statistics

 can be found on the Scottish Government’s website

Emergency cash paid out to 326,000 households across Scotland

poverty family JRF

Nearly a third of a million low income households have accessed emergency funding to help with the costs of essentials such as food and heating in the past six years.

The Scottish Welfare Fund has paid out in excess of £190 million to more than 326,000 households since its first payment on 1 April 2013. Continue reading Emergency cash paid out to 326,000 households across Scotland

“Staggering”: £100 million a year to plug welfare gap

More than £100 million is spent each year to help relieve the worst impact of UK Government welfare cuts and support those on low incomes, the Scottish Government has said. This includes mitigating the bedroom tax for over 70,000 people, saving them an average of £650 a year, and providing £33 million support through the Scottish Welfare Fund, which has helped over 265,000 households since 2013, providing goods such as nappies and food. Continue reading “Staggering”: £100 million a year to plug welfare gap

Families in crisis: 265,000 Scottish households cry out for help

More than 265,000 households have received £140 million since the creation of the Scottish Welfare Fund in April 2013. Figures published yesterday show that between April and June of this year councils received 42,005 applications for Crisis Grants, an increase of 11% on the same quarter the previous year. Continue reading Families in crisis: 265,000 Scottish households cry out for help

Scottish Welfare Fund provides ‘vital lifeline’: Jeane Freeman

A quarter of a million Scottish households use welfare safety net

More than 254,000 individual households have been given grants totalling £132.6m to help them through difficult times since the Scottish Welfare Fund scheme began in April 2013. This fund comprises Community Care Grants and Crisis Grants. Social Security Minister Jeane Freeman said the Fund is a ‘vital lifeline’ and urged Westminster to halt the ‘chaotic’ roll-out of Universal Credit. Continue reading Scottish Welfare Fund provides ‘vital lifeline’: Jeane Freeman