Buy Now, Pay Later schemes: financial regulator to intervene

The FCA has published a report on change and innovation in the unsecured consumer credit market following a Review by its former Interim Chief Executive, Christopher Woolard CBE.

Read the Woolard Review

The Woolard Review sets out how regulation can better support a healthy market for unsecured lending, taking into account the impact of the coronavirus (Covid-19) pandemic, changing business models and new developments in unregulated buy-now pay-later (BNPL) unsecured lending. The Review was commissioned by the FCA Board.

Christopher Woolard, Chair of the Review, said: ‘Most of us will use credit at some point in our lives. So, it’s vital that we have a fair market that works for everyone. New ways of borrowing and the impact of the pandemic are changing the market, with billions of pounds now in unregulated transactions and millions of consumers at greater risk of financial difficulty.

‘Changes are urgently needed: to bring BNPL into regulation to protect consumers; to ensure that there is secure provision of debt advice to help all those who may need it; and to maintain a sustained regulatory response to the pandemic.

‘Alongside these urgent issues the Review sets out a series of recommendations for how the FCA, working with partners, can build a better market in future.’

UK households have nearly £250 billion of outstanding consumer credit debt and more than 42.5 million people used consumer credit in 2019.

The Review sets out 26 recommendations to the FCA, sometimes working with Government and other bodies, to make the unsecured credit market fit for the future, including:

  • The regulation of unregulated buy-now pay-later: BNPL products which are currently exempt from regulation should be brought within the regulatory perimeter as a matter of urgency. The use of BNPL products nearly quadrupled in 2020 and is now at £2.7 billion, with 5 million people using these products since the beginning of the coronavirus pandemic. The emergence and expansion of unregulated BNPL products gives consumers a significant alternative to more expensive credit, but this also comes with significant potential for consumer harm. For example, more than one in ten customers of a major bank using BNPL were already in arrears. Regulation would protect people who use BNPL products and make the market sustainable.
  • Debt advice: The provision of debt advice will be critical to a sustainable market in the long term, especially through the recovery from coronavirus. Free debt advice services need secure, long-term funding as demand increases to as many as 1.5 million additional cases, following the pandemic. Funding needs to be in place to help the poorest pay fees when applying for debt relief orders.
  • Forbearance: The FCA responded quickly and effectively in the emergency phase of the pandemic – it needs to sustain this response through the recovery, for example by looking at whether it should revise its rules and guidance to drive greater consistency in the type of support firms offer consumers struggling to pay.
  • Alternatives to high-cost credit: A sustainable credit market needs more alternatives to high-cost credit. The FCA should work with the Government and Bank of England to reform the regulation of credit unions and Community Development Finance Institutions. More should be done to encourage mainstream lenders into this space.
  • Outcomes focused: Regulation should be driven by the outcome being sought and how consumers use products in the real world. Regulation should deliver similar protections where consumers face similar harms. In addition to making sure products are affordable, there should be an increased focus on lenders meeting consumers needs’ for as long as they hold the product. The FCA should review repeat lending. 

The FCA welcomes the Woolard Review report into change and innovation in the unsecured credit market and supports the recommendations directed to the FCA. The Board agrees that there is a strong and pressing case to bring buy-now pay-later business into regulation.

Charles Randell has written to the Economic Secretary to the Treasury setting out the Board’s view and proposing that the FCA works with the Government to design the appropriate regulation.

Ensuring consumer credit markets work well is one of the FCA’s five priorities. The Board has asked the FCA executive to build the Review’s recommendations into its business planning. The FCA will publish its 2021/22 Business Plan in April, and will give further details of the response to the Review.

Charles Randell, Chair at the FCA, said: ‘Unaffordable credit can damage the lives of people who are already struggling to manage everyday expenses. While we have made progress in reducing unaffordable debt in the years before coronavirus, the pandemic has had an unequal impact on households.

“Many people have been able to reduce their debts, but some of the poorest in our society have exhausted any savings or run up more debts. All the authorities which cover debt and debt advice must act together systematically to prevent problem debt and to help people get out of a spiral of debt through properly funded debt advice.

‘Regulation should be consistent and the Review shows how we can ensure high standards in consumer credit regardless of the form of credit.

‘The Review has powerful recommendations on debt advice and insolvency including on the IVA market. We are ready to work with other regulators to reduce the harm that IVAs can produce for people that use them, and to reduce the scope for unscrupulous operators to prey on vulnerable indebted people through for-profit debt packaging.

‘As the market innovates and changes, regulators and legislators need to respond quickly and decisively to protect consumers by facilitating credit where it is beneficial and clamping down on it when it does harm. The FCA agrees that there is a strong and pressing case to bring buy-now pay-later business into regulation.’

Have Your Say: Age Scotland launches The Big Survey

Age Scotland is seeking the views of older people in the first comprehensive survey of what it is like to grow older in Scotland.

The Big Survey explores all areas of life for older people including health and wellbeing, housing, media representation and the impact of Covid-19.

The national charity hopes to gain a better insight into what older people think, experience and care about. Survey responses will help prioritise its future campaigns and shape policy.

The Big Survey launches after an exceptionally challenging year for older people. This was the age group most severely affected by Covid. Older people were asked to shield, the overwhelming majority of deaths took place among the over 75s and care home residents faced months of separation from family and friends.

Lockdown has contributed to soaring levels of loneliness and the absence of regular exercise activities and sports has had an impact on physical fitness.

Age Scotland wants to hear from as many older people across Scotland as possible to find out what their lives are like now, what issues are important to them and their expectations of later life.

Brian Sloan, chief executive of Age Scotland, said: “We are pleased to be launching The Big Survey at such an opportune time. This has been a tumultuous time for older people and undoubtedly the past 12 months have had a profound impact across society.

“We want to hear how older people’s lives have been affected by Covid, what their expectations are now, how they want to live and what their requirements are for enjoying a fulfilling and happy later life.

“I would urge as many older people as possible to take part. Each and every response will be considered and they will help shape our policies and our work in the coming years.

“So please take the time to share your views and help us be there to support older people throughout Scotland in ways that make a real difference. We look forward to hearing from you.”

Have your say in The Big Survey

https://wh1.snapsurveys.com/s.asp?k=160745327579

Tell us what life is like for people over the age of 50 in Scotland, the issues and challenges you face, and where change is needed.

On-site testing service launched at Edinburgh Airport

Edinburgh Airport is first Scottish Airport to offer rapid Covid-19 screening services

Edinburgh Airport and ExpressTest (a division of Cignpost Diagnostics Ltd) have announced the launch of an on-site Covid testing service.

The site offers fast and accurate lateral flow and PCR testing and is located through the Covid Screening entrance to the left of the departures entrance.

PCR tests costs £99 per person for the general public, £80 per person for airline passengers and £60 per person for Edinburgh Airport staff. Lateral flow tests are available for £50 per person.

No booking is required for lateral flow tests as this is a walk-in service, customers will be asked to fill out their details and sign the consent form at the site. The customer will then be guided through to their testing booth by a member of ExpressTest staff, where they will be swabbed. The customer will then wait for 20 minutes and subject to the test result being negative, will receive a Fit to Fly certificate.

Customers who require a PCR test should book via the ExpressTest website prior to arrival. ExpressTest aim to deliver PCR test results by 10pm the day after the test, however, results could take up to 48 hours to receive.

ExpressTest is delivered using lateral flow tests and the latest gold standard PCR equipment that is all fully CE-IVD certified and manufactured to the highest possible standards. The tests are carried out by a trained screening practitioner in full PPE.

This ExpressTest service is available now but people in Scotland must continue to follow the latest government guidance, including travel restrictions, as laid out by the Scottish Government. This ExpressTest service will be an important aspect of the UK’s return to travel once restrictions are lifted.

ExpressTest was set up by its parent company, Cignpost Diagnostics, whose clients include Netflix, the BBC and the PGA European Tour. The company’s founders Nick Markham, Steve Whatley and Professor Denis Kinane, also the Chief Medical Officer, are now using their expertise to deliver world class testing to the general public.

Gordon Dewar, Chief Executive of Edinburgh Airport said: “Testing will form an important part of travel for the foreseeable future and providing that facility at airports will form part of our business as normal plans.

“Introducing this on-site will make things easier for those people who are either carrying out essential travel or who return to travel when it is safe to do so.”

Nick Markham, Founder of ExpressTest said: “As a growing number of airlines and destinations now require a negative lateral flow test as well as a negative PCR test to be able to travel, we are very excited to be supporting Edinburgh airport in offering these services.

“We hope that these testing services will play a big role in helping to lift the travel restrictions currently in place, and we’re delighted to be able to offer safe and reliable services to the public.”

Opening hours are 10am – 6pm.

Edinburgh College shortlisted for China-Scotland Business Awards

Edinburgh College’s International team has been named as a finalist at the China-Scotland Business Awards for the second year running.

The team has been shortlisted in the Educational Partnership of the Year category for its work in developing a new five-year English for Business programme with Hainan University’s College of Foreign Studies.

The English for Business course is designed to provide Hainan University students with greater fluency and confidence in English for business settings and will include preparation for Cambridge English qualifications in Business English. The course will be embedded into Hainan University’s four-year undergraduate programme, giving enhanced career opportunities for students upon graduation.

The first part of the programme was due to be delivered in Hainan, however Covid-19 prevented this from happening. Instead, the College utilised an interactive online delivery model and will continue to combine this teaching method with face-to-face teaching throughout the duration of the five-year programme.

This partnership is designed to be sustainable, with the course running over five years. It is anticipated that new cohorts of students will begin the programme each year, which will benefit a greater number of students and provide them with an international education experience without leaving home.
 
The China-Scotland Business Awards, now in their fourth year, recognise and celebrate achievements in trade and investment between Scotland and China.

International Business Manager Sarah Gore said: “We are very proud to be nominated for this award. Our Edinburgh College staff and Hainan University colleagues have put a lot of work into developing and delivering this programme and partnership, and it is heartening to see this recognised within the China Scotland Business community. 

“We look forward to working with our dedicated Hainan students and colleagues for many years to come, and continuing to build on our strong and supportive partnership.”

The awards will be held virtually on Thursday (4 February).

A Budget for a Fairer Scotland?

‘We are putting tackling poverty at the heart of the Budget’ – Social Security Secretary Shirley-Anne Somerville

Tackling deep-seated poverty and inequality will be supported by increased funding from the 2021-22 Scottish Budget.

To ensure all children have the best start in life, £68 million will be invested in the Scottish Child Payment, and £53 million will fund universal Free School Meals to all children in primary one, two and three.

Communities impacted by the coronavirus (COVID-19) pandemic will continue to be supported through funds aimed at helping them recover and rebuild.

The 2021-22 Scottish Budget includes:

  • a near doubling of spending through the Tackling Child Poverty fund with £23.3 million of investment, and providing £6 million to local authorities to continue providing a school clothing grant worth at least £100 to every eligible child
  • £3.6 billion for social security to carers and those on low incomes
  • £150 million for fuel poverty and energy efficiency measures
  • £711.6 million for affordable housing and a new £55 million programme to support town centres
  • £32 million to promote equality and human rights, including actions to ensure this approach is embedded across government and the wider public sector
  • £15 million to further support children and young people with Additional Support Needs
  • more than £26 million of investment in the vital Third Sector
  • £81.6 million for projects to support community regeneration, town centres and 20 minute neighbourhoods – where people can meet their needs within a 20 minute walk from their home
  • over £12 million to support the Ending Homelessness Together action plan, including specific actions to scale up Housing First, end the use of communal night shelters, advance legislative protections for people experiencing domestic abuse and explore alternative routes to reduce migrant homelessness

Social Security Secretary Shirley-Anne Somerville said: “We are putting tackling poverty at the heart of the Budget. In two weeks we introduce our new game-changing Scottish Child Payment, backed by investment of £68 million.

“As well as mitigating the impact of UK Government welfare cuts, we are supporting carers, young people, and low income families through our range of new benefits. This year also sees the start of the introduction of the first disability benefits as we continue to establish a social security system that is based on dignity and respect and investing in our people.”

Communities Secretary Aileen Campbell (above) said: “In addition to responding to the impacts of the coronavirus pandemic, this budget is investing in actions designed to tackle deep-seated poverty and inequality including almost doubling our child poverty budget to £23.3 million.

“This means we will deliver our £50 million Tackling Child Poverty Fund commitment in full, continuing with investment in actions including our Parental Employability Support Fund, Access to Childcare Fund and innovative Children’s Neighbourhoods Scotland programme.

“Funding for more affordable, greener housing is at the heart of the Scottish Budget, contributing to our net-zero ambitions while helping to ensure everyone has a home that meets their needs.

“We will also invest over £26 million in the local and national Third Sector infrastructure, support the capacity and growth of social enterprises, and ensure the Third Sector can help people and communities recover from the impact of the pandemic.”

Ambulance Service dispatcher Nicole’s brave cancer battle

Nicole Little, who is based the Service’s East Ambulance Control Centre, was diagnosed with cancer at the age of 27. Now aged 28, she is in remission.

Nicole carries the faulty BRCA1 gene which is known to increase the risk of breast and ovarian cancer. After losing her mum Celine Mason to cancer at the age of 32, Nicole – aged only seven at the time – is now determined to help uncover everything she can about that genetic link to cancer.

The dispatcher, from Bathgate, has been with the Service for two years, starting as a call handler before becoming a dispatcher.

Nicole had an operation to remove her ovaries on January 19 last year and two months later, she had surgery to remove both her breasts followed by reconstruction. She had since returned to work.

She said: “My colleagues were great as they had chipped in for gifts and were always checking I was ok. My team arranged an afternoon tea during my chemo to cheer me up.

“My manager was very supportive throughout checking up on me and arranging a catch up over coffee frequently so I could keep up to date with things when I returned to work. He was fantastic and couldn’t have handled it any better.

“I visited the control room throughout my treatment to see everyone and make it less daunting returning with no hair. They all looked after me on my return and I honestly couldn’t have asked for a more supportive bunch.”

Nicole was first diagnosed with triple negative breast cancer on July 2019, at St John’s Hospital. The next month, she had surgery to remove a tumour from her right breast. She started chemotherapy sessions in September of that year, which resulted in her losing her hair.

To mark World Cancer Day in Scotland on February 4, Nicole is urging people to make a donation to Cancer Research UK or by the charity’s Unity band.

Every year, around 32,400 people are diagnosed with cancer in Scotland. World Cancer Day is an international initiative, uniting people around the world to beat the disease.

By donating or getting a Unity band, people across Scotland will be raising money to help get life-saving research back on track after the impact of the Covid-19 pandemic.

Nicole said: “I still miss my mum every day and when it was me in the hospital room being told I had cancer, my first thought was for her. I feared at first it was like history repeating itself.

“Going through cancer made me realise how lucky I am to have people in my life who love me. That’s why I want everyone in Scotland to mark World Cancer Day. Just by wearing a Unity band or making a donation, everyone can help make a real difference to people with cancer.”

A unity band can be purchased by visiting the Cancer Research UK online shop and is available in three different colours- pink, navy and blue.

Matt Hancock: “the fight against this virus isn’t over yet”

A door-to-door testing blitz is under way this morning in a bid to find and eliminate every case of the South African coronavirus variant in England.

On-the-spot doorstep tests, home testing kits and mobile testing units are being deployed to reach 80,000 people in eight specific neighbourhoods in an urgent effort to stop the spread of the South African strain.

Health Minister Matt Hancock told last night’s Coronavirus media briefing:

Good afternoon and welcome to Downing Street for today’s coronavirus briefing. And I’m joined by Professor Steve Powis, the Medical Director of NHS England. And Dr Susan Hopkins, who is the Chief Medical Advisor to Public Health England and to NHS Test and Trace.

I’ve got quite a lot of news to bring you up to speed on. Right at the start, I wanted to tell you where we are with our vaccine programme.

I’m so proud of the team, who’ve now vaccinated 9.2 million people across the UK, that includes 931,204 vaccinations just this weekend.

And to put that into context – that’s one in every 60 adults in the whole United Kingdom vaccinated in one single weekend. It’s a mammoth effort.

I know how much these jabs mean to people. And I’m so grateful for all the messages that we get, and all the pictures that I’m sent of people being vaccinated.

It fills me with pride that so many people are doing so much to help for this roll out to happen so smoothly and I want to say thanks to you all.

Care homes

Getting vaccinated is an emotional moment for so many people and that’s because it is about protecting those who are most vulnerable to COVID.

We’ve now vaccinated almost 9 in 10 of all over 80s in the UK and now, as of today, we’ve vaccinated over half of all people in their 70s.

And, I’m delighted that I can tell you we’ve visited every eligible care home with older residents in England, and offered vaccinations to all their residents and staff.

This has been an incredible example of health and social care working together, working side-by-side to protect people most in need.

As Professor Martin Green, the Chief Executive of Care England said today, this is a “wonderful achievement and one that is testament to the hard work of care home staff and our colleagues in the NHS and local authorities.”

And, I want to thank every single person who’s helped us to get this far.

Vaccine supply

I also want to let you know some good news on vaccine supply. Today we’ve ordered another 40 million vaccine doses from Valneva.

As we have all along, we’ve invested early and at risk, before we know for sure if it will come good because from the start, we’ve taken a no regrets attitude to backing vaccines. We’ve tried to leave nothing on the table.

If this gets regulatory approval, the Valneva vaccine, like many others, will be made right here in the UK.

The Oxford/AstraZeneca vaccine is made in Oxford, and Staffordshire, and Wrexham. The Novovax vaccine is being manufactured on Teesside. And if approved, this Valneva vaccine will be manufactured in Livingston, in Scotland.

We didn’t start this pandemic with a large-scale on-shore vaccine manufacturing capability, so we’re building one, all across the United Kingdom.

The vaccine programme just goes to show how important it is to have the UK working as one, together.

International

We now have over 400 million doses of vaccines on order. This is obviously more than the UK population needs. And my attitude has always been we protect every UK citizen as fast as we can. And at the same time, we’re generous around the world.

I want to say this to our international partners. Of course, I’m delighted about how well this is going at home. But I believe fundamentally that the vaccine roll out is a global effort.

One of the many reasons that I’m so happy with the AstraZenenca contract is that it not just that it gives us a strong supply here but because it is the only vaccine being deployed that’s available to the whole world at cost.

And because it’s logistically straightforward, it can be practically deployed in the poorest parts of the world too.

So, we will protect UK supply and we’ll play our part to ensure the whole world can get the jab.

New variants

Another area where we’re helping around the world is in spotting new variants.

Our global leadership in genomic sequencing has helped us to spot new variants here in the UK, and quickly alert the rest of the world. But there are other countries that don’t have the capacity they need.

Last week, we offered our capacity and expertise to other nations through our New Variant Assessment Platform, because a mutation in one part of the world is a threat to people everywhere.

For example, our South African colleagues spotted a new variant through their high quality genomic sequencing and rightly notified the world, as we did with the variant that we discovered here in the UK.

We’ve now identified 105 cases of this variant here. Eleven of those cases don’t appear to have any links to international travel.

There’s currently no evidence to suggest this variant is any more severe, but we need to come down on it hard and we will. We’ve already made sure that all these cases are isolating and that we’ve done enhanced contact tracing of all of their close contacts.

We are surging extra testing into the areas where this variant has been found and sequencing every single positive case.

Working with local authorities, we are going door-to-door to test people in the local area. These cases have been identified in the following postcodes:

  • W7, N17, CR4, WS2, ME15, EN10, GU21, and PR9

If you live in one of these postcodes where we’re sending in enhanced testing, then it’s imperative that you stay at home. And that you get a test, even if you don’t have symptoms.

This is so important so that we can break the chains of transmission of this new variant. And we’ve got to bring this virus to heel.

So there’s lots of good news, but this is a stark reminder that the fight against this virus isn’t over yet.

Every day, we’re protecting more people and getting ourselves one step closer to normal life. But this is no time to let things slip. So let’s, all of us, do what we must to get this virus under control.

£11.6 billion for local councils

Details of how £11.6 billion of funding from the Scottish Government will be distributed to individual local authorities in 2021-22 have been published.

The settlement provides councils with an increase in day to day revenue spending of £335.6 million, including £90 million to compensate local authorities which choose to freeze council tax and a further £259 million will be added in one-off funding to support ongoing COVID-19 pressures.

In total, councils will receive additional revenue funding of almost £600 million to support vital local government services in 2021-22.  

The Scottish Government will also increase a scheme which compensates councils for the loss of income from sales, fees and charges due to the pandemic from £90 million to £200 million in 2020-21.

Finance Secretary Kate Forbes said: “This budget is being delivered in exceptional circumstances as we continue to battle a pandemic that has shaken our society and economy to the core.

“The local government settlement will help to fund those vital public services that are much valued and needed. 

“It includes additional funding of £59 million to complete the expansion of early learning and childcare to 1,140 hours a year, £72.6 million for investment in health and social care and £7.7 million to support the inter-island ferries in Shetland, Orkney and Argyll and Bute.

“Just as we have chosen not to increase tax rates, ensuring people pay no more than last year, I have taken the significant step of offering funding equivalent to a council tax increase of around 3% to councils who choose to freeze council tax. I look to local government to join with me in providing the much needed financial reassurance to those who are struggling.

“We need to focus on how we rebuild and renew our country, and the funding I am providing to local authorities reflects the key role that they will continue to play in that journey.”

LOCAL GOVERNMENT FINANCE 2021-22: TOTAL REVENUE SUPPORT

Local Authority2020-212021-22ChangeChange.
£m£m£m%
Aberdeen City364.6376.011.43.1
Aberdeenshire460.2479.219.04.1
Angus220.2226.96.73.1
Argyll & Bute208.8213.34.62.2
Clackmannanshire103.0105.72.72.6
Dumfries & Galloway306.8314.67.92.6
Dundee City320.1327.77.72.4
East Ayrshire249.9256.97.02.8
East Dunbartonshire202.1208.05.92.9
East Lothian189.2194.75.52.9
East Renfrewshire191.3196.14.82.5
Edinburgh, City of799.6831.932.34.0
Eilean Siar99.8101.61.81.8
Falkirk308.2315.77.52.4
Fife702.4725.322.93.3
Glasgow City1,333.11,362.929.82.2
Highland493.0506.313.32.7
Inverclyde177.6181.94.32.4
Midlothian178.9183.74.82.7
Moray173.6180.26.63.8
North Ayrshire296.7303.97.22.4
North Lanarkshire673.1691.218.12.7
Orkney Islands78.282.74.55.7
Perth & Kinross271.0281.310.33.8
Renfrewshire341.9351.29.32.7
Scottish Borders224.0233.29.24.1
Shetland Islands90.097.37.38.1
South Ayrshire217.4223.76.32.9
South Lanarkshire610.4625.815.52.5
Stirling183.5188.75.22.9
West Dunbartonshire203.0207.44.42.2
West Lothian344.5353.38.82.6
Undistributed51.975.123.244.8
SCOTLAND10,667.811,003.4335.63.1

Speaking after last week’s Budget announcement, COSLA’s Resources Spokesperson, Councillor Gail Macgregor, said: “Given the context this year, perhaps it is not overly surprising that the Budget is very much a mixed bag for Local Government –the main issue is that the overall allocation adds very little into our core financial settlement which has been eroded over the years.

“The Cabinet Secretary, in her speech, recognised Councils’ role as deliverers of vital services and yes on the face of it there is more money but that is predominantly for Government priorities.

“The addition of £259 million flexible funding for 2021/22 will help councils address Covid related costs next year, including providing the support that the most vulnerable in our communities will require but we need solid assurances that if this figure falls short, as is expected, that further funding will be forthcoming.

“To deal with pressures this year, the announcement of an additional £110 million to help compensate Councils for loss of income, which when added to the money we have already had, makes £200 million, is to be welcomed. 

“However, for many councils this won’t be enough – income loss will leave a very large hole in their finances for years to come.  We welcome that the Cabinet Secretary for Finance has listened to Leaders requests for further funding to cover loss of income but there is still work to do where there is a shortfall.

We welcome elements of today’s announcement but overall this budget falls short of what we would consider a fair settlement for Local Government. We would anticipate further constructive discussions with the Cabinet Secretary in the next few weeks.

‘Stark Gaps’ in educational attainment risk being compounded by Covid, warns Poverty Alliance report

Anti-poverty campaigners have called for increased action from the Scottish Government to tackle the educational attainment gap, after new analysis (which can be read in full here) found stark gaps in attainment between young people from Scotland’s least and most deprived areas.

The analysis, undertaken by the Poverty Alliance on behalf of The Robertson Trust, examined the evidence on the links between poverty, education and work pathways for young people in Scotland and across the UK.

It found evidence that the poverty-attainment gap – already identified by the Scottish Government as a key priority – shows signs of increasing and risks being further compounded by the impact of the Covid-19 pandemic.

The review reveals that as of 2018-19:

  • Infants living in deprived areas, aged 27-30 months, are 16% more likely to display development concerns
  • Just over 2 in 5 young people living in the most deprived areas achieve one or more Higher when leaving school (43.5%) compared to almost 4 in 5 young people living in the least deprived areas (79.3%)
  • Inequalities continue into post-16 education and work pathways with one in ten school leavers living in the most deprived areas in Scotland unemployed nine months after the end of the school year, compared to 2.6% of young people in the least deprived areas.

Despite a range of policies, strategies and initiatives having reformed the Scottish educational and employment landscape over the last six years, most notably the expansion of early learning and childcare and the Scottish Attainment Challenge, the review highlighted Covid-19’s disproportionate impact on single parents and low-income households.

Emerging evidence has also shown the negative impacts of the pandemic on the educational outcomes for children and young people from deprived areas due to the digital divide and lack of access to educational related resources.

Income inadequacy prevents children from low-income households being able to fully participate in education and initiatives seeking to reduce the attainment gap should put reducing financial barriers at the centre.

The review also highlights the importance of initiatives like one-to-one tutoring, mentoring and careers education targeted at young people living in more deprived areas; initiatives that, the review concludes, are currently lacking in Scotland.

Poverty Alliance Director, Peter Kelly, commented: “Scotland is a country that believes that every child should have every chance. However this review makes clear that too many of our young people are seeing their life chances restricted by poverty. The educational attainment gap is stark in Scotland, and is an injustice that we cannot allow to continue.

“We know that the pandemic is compounding the gap. But we also know the action that we have to take to loosen the grip of poverty on the lives of families across Scotland, and to ensure that every young person in Scotland has access to the same opportunities.

“That means using every lever at our disposal to boost family incomes, as well as increasing support for interventions like one-to-one tutoring and mentoring for young people from low-income backgrounds.”

Chief Executive of the Robertson Trust, Jim McCormick, added: “At The Robertson Trust, we are keen to understand how best we can maximise the contribution of education and fair work in reducing poverty.

“This report not only highlights the stark differences in educational experiences that children and young people from different backgrounds face across Scotland but also where some of the evidence gaps currently exist when it comes to what works and why.

“Although many of the findings will be familiar to those working tirelessly to narrow the attainment gap, this analysis shines a bright light on the disproportionate impact Covid-19 has had on those already most affected. This is particularly concerning given the clear link between childhood disadvantage, low educational attainment and future poverty.

“We will use the findings to help us shape our own role as an independent funder in this area and it is our hope that the review will stimulate renewed commitment to act across Scotland.”

Czech man convicted of money laundering offences

A 42-year-old man from the Czech Republic has today, Monday, 1 February 2021, been convicted of money laundering offences after being arrested at Glasgow Airport as part of a Police Scotland and National Crime Agency (NCA) intelligence-led investigation into the export of cash from the United Kingdom to Dubai.

On 8 November 2020, Lukas Pokorny was stopped and arrested by Border Force officers as he was about to board a flight bound for Dubai.

A search of three suitcases in his possession revealed a large quantity of cash in each – totalling over £860,000. He was unable to provide keys to unlock the luggage, or say who they belonged to or what they contained.

Officers from the Organised Crime Partnership (Scotland) charged Pokorny and today he pled guilty to three charges under the Proceeds of Crime Act 2002 at the High Court in Glasgow.

Pokorny claimed he was flying to the United Arab Emirate to stay with a friend and the money was to allow him to teach people to jet-ski.

Detective Inspector Tom Gillan of the Organised Crime Partnership (Scotland) said: “Targeting the movement of criminal cash and profits from organised crime groups in Scotland remains a priority.

“The arrest and conviction of Pokorny is another excellent example of the value of partnership working between Organised Crime Partnership, Border Force and National Crime Agency officers.

“I welcome his conviction and the significant amount of laundered cash that has been taken out of criminal circulation.”

NCA regional head of investigations for Scotland Gerry McLean added: “This was a significant seizure of criminal cash, the proceeds of organised crime. Taking it out in has prevented that money being invested into further criminal activity, violence and exploitation on the streets of Scotland.

“Working with partners including Police Scotland and Border Force we are determined to do all we can to disrupt the flow of illicit finance.”

The Organised Crime Partnership (Scotland) is an investigation team comprising of officers and staff from Police Scotland and the National Crime Agency.