Scotland’s Finance Secretary writes to Treasury ahead of Spring Statement
People and businesses need urgent UK Government support to mitigate the rising cost of living, says Finance Secretary Kate Forbes.
In a letter to the Chancellor of the Exchequer Rishi Sunak ahead of the Spring Statement, Ms Forbes called on UK Ministers to match the 6% uprate on social security benefits which the Scottish Government is delivering on eight of the benefits it delivers, and for further payments to be made to low income households through the Cold Weather Payment
The letter to the UK Government also calls for:
more targeted funding to business sectors directly affected by the conflict in Ukraine
relief to business on National Insurance Contributions
the removal of VAT from energy efficient and zero emission heat equipment and products
greater powers for the Scottish Government to work with employers to implement flexible working
full replacement of EU funding lost to Scotland as a result of Brexit, as promised by the UK Government
The Scottish Government ‘stands ready’ to work with the UK Government, which holds the powers to tackle the most pressing issues, to put a package of support in place.
Ms Forbes said: “In Scotland we are doing all we can to ensure people, communities and businesses are given as much support as possible to deal with the rising cost of living and the potential economic implications of Russia’s illegal invasion of Ukraine.
“However, many of the powers required to really tackle these issues are reserved to the UK Government, which is why I am calling on the Chancellor to take much needed action in his Spring Statement.
“The Scottish Government is uprating eight Scottish benefits by 6% from 1 April as well as doubling our Scottish Child Payment from £10 per week per eligible child to £20. We are using our powers to help those who need us most in these difficult times and it is time for the UK Government to follow our lead and uprate social security benefits by 6%.
“I would also ask for further immediate support to be delivered through the Cold Weather Payment, with an additional payment now and another next winter when we know energy bills will have risen again.”
The UK’s lowest-paid workers will receive a pay rise next year as the National Living Wage increases from £8.91 to £9.50 an hour – an extra £1000 a year for a full-time worker.
From 1 April, young people and apprentices will also see their wages boosted as the National Minimum Wage for people aged 21-22 goes up to £9.18 an hour and Apprentice Rate increases to £4.81 an hour.
This builds on the government’s continued action to support people with the cost of living including through the £500 million Household Support Fund, Energy Price Cap, Seasonal Cold Weather Payments and Warm Homes Discount, and keeps the government on track to meet its target to end low pay by 2024-25.
MILLIONS of the UK’s lowest paid workers will benefit from a pay rise next year, as the UK government takes further action to help the country’s poorest households.
The Chancellor is expected to confirm at Wednesday’s Budget and Spending Review that the National Living Wage will increase from £8.91 to £9.50 an hour – a 59p an hour boost which means a full-time worker on the National Living Wage will see a pay rise of more than £1,000 a year.
The National Living Wage was introduced in 2016 and sets the minimum hourly pay a person over the age of 23 can earn when working.
Rishi Sunak is also set to announce a wage rise for young people under the age of 23. For those aged 21-22 the National Minimum Wage rate increases to £9.18 an hour, up from £8.36 – a 82p increase.
With apprenticeships a key part of our Plan for Jobs, the minimum hourly wage for an apprentice will also see a boost next year, with an 18 year old apprentice in an industry like construction seeing their minimum hourly pay increase by nearly 12%, going from £4.30 to £4.81 an hour.
Chancellor of the Exchequer Rishi Sunak said:“This is a government that is on the side of working people. This wage boost ensures we’re making work pay and keeps us on track to meet our target to end low pay by the end of this Parliament.”
By introducing these changes, which are broadly consistent with previous increases, the government accepts all recommendations made by the Low Pay Commission – an independent advisory board which brings together economists, employer and employee representatives.
“The government remains committed to meeting its ambitious target of a National Living Wage of two-thirds of median earnings and expanding it to include workers over the age of 21 by 2024, provided economic conditions allow.
Since 2010, this government has continuously supported working people on the lowest wages – doubling personal tax thresholds, doubling free childcare for eligible working parents – worth up to £5,000 per child per year. It has also expanded Free School Meals to all five to seven-year-olds – saving families £400 a year.
This builds on recent action to support the lowest earners in the winter months, through measures like the £500 million Household Support Fund to help families with their food and utility costs, the Energy Price Cap, Seasonal Cold Weather Payments, and the Warm Homes Discount to ensure low-income households can keep their homes warm over the winter period.
As we enter the next stage of the Plan for Jobs, an extra £500m will also be invested to give people the skills and support they need to find good work as we build back better from the pandemic.
Chancellor expected to confirm £700 million to improve sports and youth clubs.
Up to 8,000 state-of-the-art sports pitches to be built or improved across the UK to ensure every young person has a chance to take up sport.
Hundreds of youth facilities to be built or refurbished across England and the National Citizen Service to continue helping young people to build confidence and leadership skills outside of school.
As part of the government’s drive to level up the country, local communities will benefit from a £700 million wave of investment in football pitches, tennis courts, and youth facilities to help build the next generation of young talent, the Chancellor is expected to announce next week.
Following on from England’s roaring success at the Euros (Eh? – Ed.) and Emma Raducanu’s US Open victory, Rishi Sunak is set to announce new funding to build or improve up to 8,000 state-of-the-art sports pitches in villages, towns, and cities across the UK, as well as supporting a range of projects, including new clubhouses and community buildings.
This sits alongside the government’s commitment to refurbish more than 4,500 tennis courts across Great Britain.
Up to 300 youth facilities, which could include scout huts, youth centres and activity centres, will also be built or refurbished in the most deprived areas, and funding will be committed to continue the National Citizen Service until 2024/25 – which provides 16-17 years olds from all backgrounds the opportunity to mix with their peers outside of school.
Chancellor of the Exchequer, Rishi Sunak said:“We’re backing the next generation of Ward-Prowses and Raducanus, not just sporting stars, but inspiring young leaders. Sports can be a fantastic way for young people to make friends and learn skills they’ll use for the rest of their lives – leadership, teamwork, and determination.
“This funding will level up access to sport and social clubs for youngsters ensuring they can get together and play the games they love most.”
Nadine Dorries, Secretary of State for Digital, Culture, Media and Sport said:“I want every young person, no matter where they’re from, to have the chance to get the best start in life and achieve success.
“This £700 million investment is a downpayment on our commitment to open doors for those who have been shut out. It will give young people the pitches and clubhouses they deserve to reap the benefits of sport and youth groups and help level up the country for the next generation.”
Robert Sullivan, Football Foundation Chief Executive Officer, said:“This investment is welcome news for all those involved in grassroots football across the country.
“We know that playing on good quality facilities helps people get fitter, improves mental wellbeing, grows confidence and builds stronger relationships. This is all essential for individuals and communities as we emerge out of the Covid-19 crisis.
“With the government, Premier League and The FA’s investment, we have made plenty of progress in the last two decades, but there is still lots of work to do to ensure all communities across England get the standard of local sports facilities they need and deserve.
“This new funding will unlock the power of even more pitches to help transform people’s lives.”
Mark Bullingham, Chief Executive of The FA said:“This investment into grassroots football pitches and multi-sport facilities is fantastic news for communities throughout the country.
“It will help the nation get active as we emerge from the impact of Covid. This is an important part of the Government’s £550m commitment to transform our grassroots football infrastructure, which will have a massive social and economic impact”.
Tim Hollingsworth, CEO of Sport England said:‘We welcome the government’s decision to continue to invest in our young people and provide vital funding to support the facilities we need to enable sport in our communities.
‘There has never been a more important time to get the nation active and give people the opportunity to play sport, no matter their background.’
The government is investing £173 million to fund the continuation of the National Citizen Service in England; £368 million to fund up to 300 youth centres across England; and £155 million additional funding is being provided to invest in multi-use sports pitches and facilities throughout the UK.
DCMS will also receive a further £20 million to invest in youth services in England and the government will set out more detail in due course.
This builds on the government’s commitment to sport, having announced £50m of UK sports facility funding in July, as part of our ambition to ensure that you are never more than 15 minutes away from a high-quality pitch; and is in addition to the £30 million investment to refurbish more than 4,500 tennis courts across Great Britain; and the £25 million provided by the Chancellor for grassroots sports facilities throughout the UK at Spring Budget 2021.
The UK Government’s Plan for Jobs is also helping young people find new opportunities and better paid work; the government recently announced a £500 million extension of its supported schemes – targeted at young workers – including extensions to the Kickstart scheme, Job Entry Targeted Support Scheme, and the £3,000 incentive payment for businesses to hire apprentices.
