£2 million funding boost for housing payment scheme
A scheme helping low-income households avoid homelessness will receive an additional £2 million this year.
The Discretionary Housing Payment scheme provides direct financial support to low-income households struggling with housing costs and helps people to retain their tenancy in the rented sector.
The additional funding takes this year’s investment in the scheme to a record £117 million. This will help an estimated 100,000 households in Scotland sustain their tenancies. The scheme is the main way the Scottish Government mitigates the impacts of the UK Government’s ‘bedroom tax’ and benefit cap.
Cabinet Secretary for Social Justice and Housing Shirley-Anne Somerville said: “Our Discretionary Housing Payments are a vital lifeline to families at risk of losing their home and help protect people from the UK Government’s damaging bedroom tax and benefit cap policies.
“Our scheme is delivering and providing direct support to low-income households – helping to reduce poverty, safeguard tenancies and prevent homelessness. In Scotland, we offer a level of support not available elsewhere in the UK, and our different approach is working.
“However, the UK Government’s decision to freeze the support given to private renters at 2024 levels means people are struggling to pay their housing costs – this is driving homelessness and putting families at serious risk.
“I am extremely disappointed the Chancellor chose not to use his Budget to end the freeze and give households the breathing space they desperately need.”
Responding to the Scottish Government’s new Benefit Take-up Strategy, released yesterday, Debbie Horne, Scotland Policy and Public Affairs Manager at Independent Age said: “Today, the Scottish Government published its third Benefit Take-up Strategy. As the charity for older people facing financial hardship, we know firsthand how important income maximisation is for the older people in Scotland that we work with.
“With over £350 million going unpaid every year to older people on low-incomes, improving take-up of social security is essential to tackling poverty in later life. Our research shows that if there was full take-up of Pension Credit, Housing Benefit and Council Tax Reduction across Scotland, 30,000 older people would be pulled out of poverty and there would be a £90 million reduction in health and social care spending each year.
“However, our Older People’s Index 2026 revealed that 1 in 5 older people don’t know about Pension Credit, and around 1 in 4 don’t know about Council Tax Reduction and Housing Benefit, with even lower awareness of support like the Scottish Welfare Fund. So, this strategy and the actions proposed are incredibly important.
“We are therefore pleased to see a greater focus on how agencies can work together to increase take-up across all entitlements including those reserved to Westminster.
“We also welcome moves to better use existing data to help people access their entitlements no matter who administers them and look forward to seeing measurable progress.”
Support of over £2,600 available through pregnancy and early parenthood
The birth of a new baby can put financial pressure on household budgets, but there’s a wide range of financial support available from the Scottish Government to ensure children have the best start in life.
Families receiving Universal Credit or certain benefits could be eligible to more than £2,600 in financial support during pregnancy and their child’s first year of life, helping with the costs of welcoming a new baby.
Expectant families can apply for the Best Start Foods pre-paid card as soon as they find out they are pregnant, helping ease the costs of buying healthy food.
Families can also apply for Pregnancy and Baby Payment from the 24th week of pregnancy. The one-off payment can be used to purchase anything families might need for having a baby, such as a pram, toys or baby clothes.
Scottish Child Payment is also available once the child is born to help with anything needed to help raise their new baby.
Cabinet Secretary for Social Justice, Shirley-Anne Somerville, said:“Welcoming a new baby is a special and exciting time, and families should have the support they need as they prepare for the arrival of their child.
“This package of support, worth thousands of pounds for eligible households, provides extra help from pregnancy through to a baby’s first birthday and beyond. Backing families in those vital early months is central to our mission to eradicate child poverty, helping parents provide the opportunities every child deserves and giving them the best possible start in life.”
Danielle turned to her local Citizens Advice Bureau after struggling to meet essential costs while caring for her 7 month old baby alone. Financial pressures had become so severe that she was considering selling her home.
But with support from Scottish Child Payment and Best Start Foods helping to ease food shopping bills, Danielle said she and her baby had enough to eat and did not need to use a food bank.
Assistant Director for Policy and Research at Citizens Advice Scotland, Emma Jackson, commented:“Evidence from across the Citizens Advice network shows the important role that pregnancy and early years payments can play in helping families through periods of financial insecurity and change.
“Support such as Best Start Grant, Best Start Foods and Scottish Child Payment can help ease financial pressures, enabling families to afford the essentials and support children to get the best possible start in life.
“Local Citizens Advice Bureaux are there to provide free, confidential and expert advice that’s available online, over the phone or in-person to help people apply for the support they’re entitled to and make sure they don’t miss out on payments that can make a real difference to their family.”
Consumers urged to check doormats and letterboxes for a letter confirming £150 off bills
345,000 Scottish households to receive the Warm Home Discount automatically this winter – an increase of around 250,000
This follows action to remove VAT from electricity bills, giving people breathing space on the cost of living
From today, Scottish households should check their doormats and letterboxes for confirmation they will get £150 off their energy bills this winter.
Around six million households across Britain will benefit from the Warm Home Discount this winter, with nearly 2.3 million additional families, including around one million with children, receiving the rebate last year after the expansion of the scheme.
This winter, 345,000 Scottish households will receive the £150 rebate automatically – an increase of around 250,000 – benefitting from reforms to the way the Warm Home Discount is administered.
The onus has previously been on many Scottish households to get in touch with their supplier to receive the money. These changes have simplified the process for the majority of those eligible in Scotland, bringing the scheme closer into line with that in England and Wales – where most recipients already get the rebate automatically.
The Warm Home Discount follows on from the VAT cut on electricity bills in October, capping bus fares at £2 and removing £150 of costs off bills earlier this year, giving families breathing space this winter.
Minister for Energy Consumers Polly Billington said:“I know that many Scottish families will be struggling with their energy bills this winter.
“That is why I urge those who think they qualify for the Warm Home Discount to keep an eye out for a letter confirming their eligibility.
“Energy is an absolute essential, which is exactly why in October we cut VAT on all electricity bills and earlier this year we removed £150 of costs off bills, giving families breathing space this winter.”
Letters will be issued from this week through to January 2027 and will advise if the recipient will either get the Warm Home Discount automatically or if they need to phone the helpline to receive the money.
Households asked to phone the helpline and provide extra information to ensure they get the discount this winter must do so before 26 February 2027.
Scotland’s national children’s charity is urging Edinburgh families worried about energy bills to get in touch with its support line to check if they can benefit from the Warm Home Discount.
The charity’s support line team provides practical advice to families struggling with the cost of gas and electricity, including support to access benefits, grants and other help with household bills to lower their bills and keep their homes warm.
The Warm Homes Discount scheme provides a £150 discount on electricity bills for eligible households. While some households in Scotland will receive the discount automatically, others may need to contact their electricity supplier to apply so it is important to act as soon as possible before the scheme opens on 1 October.
Children First can help families understand whether they may be eligible for the Warm Homes Discount, support them through the application process and provide other practical, financial or emotional support their family may need.
In 2025, the charity put £1.8 million in financial gains back in families’ pockets.
Linda Jardine, Director of Children and Family Services at Children First, said: “The Warm Home Discount could provide valuable help towards energy costs for eligible households, but knowing whether you qualify and understanding how to apply can sometimes feel confusing.
“With colder weather and longer nights putting increased pressure on household energy use, families don’t need to face financial worries on their own. If you’re concerned about keeping your home warm, struggling to afford your energy bills or simply unsure what support you may be entitled to, please get in touch with our Children First support line.
“You don’t need to wait until you’re in a crisis to get in touch for help.
“If you are not eligible for Warm Home Discount, our friendly team can provide free, expert advice and help you access other support.”
Parents and carers in Edinburgh can contact the Children First support line on 08000 28 22 33 or start a webchat at childrenfirst.org.uk/supportline.
TAKE UP WOULD SAVE NHS AND SOCIAL CARE SERVICES ALMOST £1 BILLION
Research shows that 100% take up of key benefits would cut numbers of pensioners in poverty by 280,000
Due to health impacts, full take-up would also save the NHS and social care services in England £950 million a year
Independent Age recommends the UK Government publish a take-up strategy for financial entitlements to ensure all older people receive everything they should be
New research from national charity Independent Age shows that full take-up of three key financial entitlements could lift 280,000 older people out of poverty across the UK, reducing pensioner poverty by 15%. This includes Pension Credit, pensioner Housing Benefit and Council Tax Reduction. The analysis was carried out by the research agency Public First.
The report, entitled ‘The only way is up: The impact of improved entitlement take-up on pensioner poverty and healthcare spending’ also shows that increasing take-up of these entitlements to 100% could help improve older people’s health, leading to a reduction in health and social care public spending by up to a colossal £950 million a year in England.
Independent Age is calling on the UK Government to publish an all-entitlements take-up strategy for the UK. This should include a strong commitment and targets to increase take-up.
The number of older people in poverty in the UK is rising, with around 1.7 million in relative poverty in 2024/25, which is an increase of 200,000 compared to the year before. Another one million live close to the poverty line.
Despite this, the charity says that too many eligible older people are missing out on money set aside for them. Over one in three (38%) of those eligible for Pension Credit are not receiving it, and around 230,000 older households are missing out on Housing Benefit.
Official take-up figures of Council Tax Reduction are not produced, however the report analysis indicates that over a million pensioner households could be missing out on this vital support.
The organisation is also calling for the Pensions Commission to agree on what an adequate income in later life looks like, and the UK Government to commit to ensuring everyone receives this.
Concerningly, full take up would also provide an additional 770,000 older people with more vital income, but they would still remain in poverty, indicating that financial entitlements and the State Pension alone is not always adequate to live on.
Joanna Elson CBE, Chief Executive of Independent Agesaid: “Our social security system was designed as a safety net for all of us but the evidence is clear, it is failing older people in poverty. Money that has been set aside is not reaching the older people who need it and at a time with increasing costs, the impact of this is devastating.
“Through our helpline, we hear often from older people who are having to skip meals or only wash once a week to make ends meet. This is unacceptable.
“Older people on a low income have been left to struggle for too long. That’s why we urgently need a strategy to ensure everyone receives the support they are entitled to and an agreement on what an adequate income looks like in later life for all of us as we age.
“With the upcoming changes in leadership, this is a golden opportunity for the UK Government to reverse the worsening picture of poverty in later life.”
Independent Age’s report found that three groups especially benefitted from increased take-up of these entitlements. These were: older people living alone, older renters and those on the old State Pension. This is due to a combination of likely higher initial costs such as housing or energy, and a lower income.
Valerie’s Story
Valerie, 68, from the Isle of Wight
“Once the rent was paid, along with Council Tax – more than £150 a month even with the single person discount – there wasn’t enough left. I had to cut back on everything. I lived on £1 meals from Iceland because they were cheap and filling, even though I knew they weren’t very nutritious.
“I relied on a local community pantry where £5 bought roughly £15 of food.
“I couldn’t afford to put the heating on. My house is all electric and it was simply too expensive. I spent winters wrapped in blankets, drinking cups of instant soup to keep warm, and sometimes slept downstairs so I didn’t have to walk through cold rooms at night.”
Valerie called Independent Age and, while she wasn’t eligible for Pension Credit, an adviser supported her to start receiving Housing Benefit and Council Tax Reduction, which she hadn’t previously been aware of. After starting to receive these entitlements, Valerie described the impact this had on her life.
“Life is so much better now. I still budget carefully, but I’m not living on my credit card anymore. I can buy fresh vegetables, cook proper meals and freeze portions so food lasts longer.
“I can travel to the mainland to see family, and I enjoy the things that matter to me, such as going to the local theatre and being part of the choir. I called the Independent Age Helpline at a time in my life when I didn’t know where to turn.
“The support I received has made a dramatic difference to my daily life. I nearly didn’t make that call – but I’m so glad I did. Before that call, I was surviving day to day. Now, I feel like I’m living again.”
The Timms Review launched last October with the aim of making sure PIP is fair and fit for the future. Its Interim Report, published in July 2026, found that PIP is no longer fit for purpose.
Fifteen workshops being held online and in person will help shape the recommendations of the Timms Review into Personal Independence Payment.
Disabled people and people with long-term health conditions invited to apply for workshops, with registration open from Wednesday 12 August 2026.
Comes following the Review’s Interim Report which found PIP to be no longer fit for purpose.
Disabled people and people with long-term health conditions are being invited to take part in a series of workshops that will help shape recommendations for the future of Personal Independence Payment (PIP).
Many people described assessment and decision-making processes as “stressful” and “dehumanising” and reported that PIP, while widely valued as a benefit, can itself create additional barriers to participation and independence.
Ahead of its final Report, due in Autumn 2026, the Review’s steering group is now developing emerging recommendations and will be seeking views on them from people across the UK.
The 15 workshops will be held online and in person across the UK during September and October 2026, ensuring people from all parts of the country can take part in discussing, testing and refining the recommendations.
The workshops are aimed primarily at disabled people and people with long-term health conditions and no previous experience of engaging with government reviews is required.
Alongside these workshops, the Review will also be contacting stakeholders including Disabled People’s Organisations, charities and MPs to test and refine its emerging recommendations over the same period.
Co-Chair of the Review and member of the shaping recommendations workshops working group Dr Clenton Farquharson CBE said: “Disabled people and people with long term health conditions know better than anyone how PIP works in real life where it helps, where it creates barriers, and where it needs to change. That experience has to be part of shaping what comes next.
“I would encourage anyone with experience of applying for or receiving PIP to register their interest in taking part. The purpose of these workshops is not simply to hear people’s experiences, but to test the Review’s emerging recommendations against real lives and understand what could make them fairer, clearer and work better in practice.
“Most importantly, I am committed to showing how what people tell us influences the recommendations we ultimately make.”
Feedback from participants in these workshops will be considered by the Review as it finalises it recommendations. These workshops, alongside intensive engagement throughout the process, will ensure the Review is grounded in the experiences of disabled people and people with long-term health conditions before the report is submitted to the government.
Prior to this, more than 38,000 responses to the Review’s Call for Evidence were received, alongside workshops and engagement with disabled people, their organisations and experts, to feed into the Review.
Registration for the workshops opens on Wednesday 12 August 2026 at 10am and closes on Friday 21 August 2026 at 5pm. Selected participants will be informed by 4 September 2026.
Selection will be done randomly but the steering group will review and ensure the people chosen represent a balanced range of characteristics. Where a particular characteristic is under-represented, applicants with that characteristic will be identified from the wider applicant pool and selected at random to fill any gaps.
Applications to take part in the workshops are now open:
Make sure you are getting the financial help you are entitled to:
Best Start Grant Early Learning Payment — £331.95 for children aged 2 to 3½
Best Start Grant School Age Payment — £331.95 for children first old enough to start primary school
Scottish Child Payment — £112.80 every four weeks for every eligible child under 16
Families receiving Scottish Child Payment and are eligible for Best Start Grant Early Learning Payment or School Age Payment will be paid automatically, there is no need to apply.
Experiences of young adults claiming Universal Credit in Scotland
Social security should be the foundation for a better life – a system that protects people’s rights, dignity and wellbeing. But what did our research team find when they looked to see if Universal Credit gives young adults the support they need?
The Poverty Alliance research intern Rachel Sowerby created this great infographic to tell the story of young adult parents’ experiences:
