Tag: Best Start grants

“Out of control, complicated and failing” – new report on Scottish benefit system

  • Scotland spent almost a sixth – £1 billion – more on welfare than the funding provided by the UK government in 2024/25
  • Scotland has the highest proportion of children in long-term workless households in Great Britain with child poverty targets missed
  • Jobless couple with three children can receive combined benefits worth £45,500 a year in Glasgow, equivalent to a salary of £69,000
  • New plan ahead of Holyrood elections sets out reforms to save almost £1 billion a year and refocus support on work and mental health treatment
The case for reforming Scottish welfare

The Scottish Government has poured billions of pounds of taxpayer cash into the country’s welfare state “with abandon”, according to a new report.

The research, entitled Benefitting Scotland?, finds that nearly a decade after major welfare powers were devolved, Scotland is spending significantly more than the rest of the UK on a “smorgasbord” of conflicting benefits and entitlements.

There is “minimal” evidence that the system is succeeding even on its own terms, warns the Centre for Social Justice. Persistent child poverty is running at 23 per cent, more than double the Scottish government’s eight per cent target.

At the same time, Scotland has the highest proportion of children living in long-term workless households in Great Britain at 11.3 per cent, and its rate of economic inactivity has gone from below England’s before 2016 to persistently above it.

The £28 billion annual welfare budget – almost a quarter of which is administered by the Scottish government – has ballooned out of control.

Last year Scottish ministers spent above and beyond the “block grant adjustment” – a grant allocated by the UK government to match non-devolved benefit spending – by almost £1 billion.

The cross-party think tank argues that Scotland could save hundreds of millions of pounds while achieving better outcomes.

Restricting eligibility to disability benefits for those with less severe mental health conditions and frontloading the Scottish Child Payment would save at least £800 million for the Scottish government to re-invest in treating the root causes of mental illness and supporting families directly through Whole Family Wellbeing Funding.

The report also highlights the scale of work disincentives in the system.

A couple with three children living in Glasgow can receive almost £45,500 per year by combining benefits. To match that income from work alone would require a salary of roughly £69,000 before tax from a single earner.

Even when parents move into employment, they can lose up to 79p of every additional pound earned once benefit tapers, income tax, national insurance and pension contributions are combined.

They also risk losing access to the myriad supplements layered on by the Scottish government, including the Scottish Child Payment, several Best Start Grants, a Carer’s Allowance Supplement, new Winter Heating Payments, and a plethora of one-off grants.

Ben Gregg, Head of Welfare at the Centre for Social Justice

Ben Gregg, Head of Welfare at the Centre for Social Justice, said: The Scottish government has missed its own child poverty targets, while pushing economic inactivity in Scotland from below to above England.

“The welfare system is over budget, overly complex, and failing on its own terms. With Holyrood elections this year, there is a real opportunity to create a much leaner, far more effective system, focused on changing lives and tackling the root causes of poverty.”

CSJ-Benefitting_ScotlandDownload

Over 43,000 automatic payments to help families with cost of living

Best Start Grants awarded without need for a separate application

More than 43,000 payments have been paid automatically to help parents and carers with the cost of living and starting school, latest official figures show.

The introduction of automatic payments means that tens of thousands of people getting Scottish Child Payment have been awarded Best Start Grant Early Learning and School Age Payments without the need to apply separately.

For each of the two benefits, people are awarded one-off payments of £294.70 per child to help with costs like clothes, toys and school trips.

Some parents and carers don’t get Scottish Child Payment but could still qualify for the two grants and they have been urged to apply.

These include people who opted out of automatic payments and some who get housing benefit.

On a visit to Ibrox Primary School and nursery in Glasgow, Cabinet Secretary for Social Justice Shirley-Anne Somerville said: “The introduction of automatic payments means we are getting money to families quickly in the crucial early years of their child’s development, as these figures show.

“The majority of eligible people get these payments automatically, but we are urging those who don’t to check if they are eligible and get the support they are entitled to.

“The UK Government makes no equivalent provision to either the Early Learning or School Age Payments and removing the need for separate applications has made things even simpler for people who need this support most.

“While the UK Government chose to continue with welfare cuts in the middle of a cost of living crisis, the Scottish Government has allocated £3 billion each year to protect people as far as possible.

“In 2024-25 we are committing a record £6.3 billion for benefits expenditure, providing support to over 1.2 million people.

“This is £1.1 billion more than the UK Government gives to the Scottish Government for social security, demonstrating our commitment to tackling poverty.”

Satwat Rehman, the chief executive of charity One Parent Families Scotland said: “Many of the single parents we support have limited access to digital devices so automation ensures that children in need will not lose out.

“Due to the inadequate levels of Westminster’s benefits these payments help at some of the most important stages of a young child’s development to give them the best start in life.”

Ben Macpherson: ‘Delivering on our commitment to ensure every child has the best start in life’

Best Start Foods payments are increasing this month marking the achievement of another commitment for the first 100 days of the Scottish Government.

Social Security Minister (and local MSP for Edinburgh Northern and Leith) Ben Macpherson paid a visit to Fresh Start’s Pantry on Ferry Road Drive at lunchtime to meet staff and customers who are benefitting from the payments.

The payment supports low income families to buy healthy food for children under the age of three, and forms part of the Scottish Government’s national mission of eradicating child poverty.

Best Start Foods is part of a package of five family payments administered by Social Security Scotland. It is made every four weeks on a pre-paid card to buy healthy food including eggs, milk, fruit, vegetables and pulses. The payment is increasing to £18 from £17 during pregnancy and for any children between one and three years old. It’s also increasing to £36 from £34 for children under one.

Between December 2018 when the first payment started and 31 May 2021, £60.8 million has been paid to 179,575 families for Best Start Grant and Best Start Foods -£16.7 million of these payments were for Best Start Foods.

Social Security Minister Ben Macpherson said: “Unwarranted welfare cuts by the UK Government and the impacts of the pandemic are putting even greater pressure on family budgets.

“It’s our priority to do everything within our power to eradicate child poverty across Scotland. We committed to increasing Best Start Foods within the first 100 days of this Government and we have swiftly delivered. 

“We have also delivered on our 100 day commitment to pay £100 as part of Scottish Child Payment Bridging Payments worth £520 in both 2020 and 2021. Families will now have received £200 for each eligible child this year, almost two years ahead of the planned full roll-out of Scottish Child Payment for older children.

“We are set to invest £77 million both this year and next through this measure which is expected to benefit around 145,000 children and young people in receipt of Free School Meals on the basis of low income.

“Families in Scotland now have a unique package of payments that will help them as their child grows and I encourage all families on low incomes to check what they are entitled to. There are many forms of support available to ensure every child in Scotland has the best start in life.”

Further information on all five family payment can be found by visiting:  

mygov.scot/beststart

Best Start Grant boost for parents

Low income parents are being encouraged to apply for the financial support they are eligible for. This year’s Best Start Grant School Age Payment opens today to families who get tax credits or certain other benefits and have a child who was born between 1 March 2016 and 28 February 2017. 

Even if the child is not starting school, eligible parents and carers should still apply before the closing date on 28 February 2022.

The payment is part of five family payments delivered by Social Security Scotland that also include: Best Start Foods, Best Start Grant Pregnancy and Baby Payment, Best Start Grant Early Learning Payment and Scottish Child Payment. 

Best Start Foods payments are set to increase to £4.50 per week on 1 August to support low income families to buy healthy food for children under the age of three.

To maximise the support available to families, income thresholds that apply to certain qualifying benefits are also set to increase. 

Minister for Social Security Ben Macpherson said: “The Scottish Government is working hard to tackle poverty and to create a fairer society, with the powers and resources that we have.

“As part of this, we are set to increase our Best Start Foods payments within the first 100 days of this new term of government, and we are determined to make sure families with young children get all the financial help that is available.

“We are providing support worth about £5,000 by the time a child turns six through our Best Start Grant, Best Start Foods and the Scottish Child Payment. People can apply for these payments on one simple, straightforward form – and I urge all those who are eligible to make sure they apply by visiting mygov.scot/beststart or calling 0800 182 2222.

“Access to financial support is important and we want people get the money they are entitled to. So please check if you’re eligible and, if so, make sure to apply – and let others know too, so that together we can help build a fairer society here in Scotland.”