Budget choices must prioritise hardest-up families, say child poverty campaigners

“Scandal of child poverty in a rich country must end” 

Scottish child payment must rise to £30 to protect lower income families who don’t benefit from proposed council tax freeze. 

Campaigners at the Child Poverty Action Group (CPAG) in Scotland are calling for tax and spending decisions to do more to prioritise hard up families ahead of tomorrow’s Scottish budget.

With the proposed £300 million council tax freeze set to benefit better off households they say the very least that is needed to protect lower income families is a £58 million investment to raise the Scottish child payment to £30 per week. CPAG were one of over 150 signatories to a letter sent to the First Minister Humza Yousaf last month urging him to deliver the increase. 

The Scottish child payment, which currently provides a vital £25 per week extra support for children in lower income families, must by law be uprated in line with inflation.

However during the SNP leadership campaign the First Minister said he wanted to see it rise to £30 in his first Budget. In a pre-Budget briefing sent to all MSPs the campaigners say this is the “minimum extra investment that is needed to support lower income families and demonstrate the First Minister is genuinely ‘shifting the dial’ on child poverty.”

The group have also joined over sixty other groups today to call on all Scotland’s political leaders to build a fair tax consensus that can provide the social investment needed for ‘a more equitable, resilient, and prosperous Scotland’. They say the Scottish Budget must be a ‘pivotal moment for fundamental change.’ 

Speaking ahead of today’s budget statement John Dickie, Director of Child Poverty Action Group in Scotland, said; “Struggling families desperately need a budget that will provide immediate support as well as help meet statutory child poverty targets.

“Increasing the Scottish child payment to £30 is a cost-effective investment that would provide much needed financial support to the lower income families who get little if any benefit from the proposed council tax freeze.

“It would make a substantive impact and demonstrate the First Minister is genuine in his desire to ‘shift the dial’ on child poverty.” 

Recognizing the challenging fiscal backdrop Mr Dickie added: “Difficult budget choices will be needed. But the right choice is to prioritise tax and spending decisions that will help end the poverty that still blights the lives of tens of thousands of children across Scotland.

“We are a wealthy country and we need all our political leaders to work together to harness that wealth to end the scandal of child poverty in a rich country once and for all.”

Child Poverty Action Group is calling for a Scottish Budget that:

•    Increases the Scottish child payment at the very least to £30 per week from April 2024, as committed by the First Minister in his leadership campaign. This investment is supported by the Children and Young People’s Commissioner and over 150 trade unions, faith groups, children’s charities and community organisations from across Scotland. 
•    Ensures sufficient resources are harnessed and allocated to fund the wider measures (including on childcare, employment and housing) set out in the statutory child poverty delivery plan – Best Start, Bright Futures.
•    Provides additional cash payments to families impacted by the two-child limit and the under 25 penalty in universal credit.
•    Invests in childcare so not only can the actions in Best Start, Bright Futures be delivered, but every parent can access the childcare they need, when they need it. 
•    Is bold in using tax powers in a progressive way to ensure sufficient resources are available to fully deliver on the actions that are needed to tackle child poverty. 

Campaigners call for doubling of Scottish Child Payment

More than 120 organisations from across Scotland are urging First Minister Nicola Sturgeon to double the Scottish Child Payment in this year’s Programme for Government.

The campaigners say the 1 in 4 children living in poverty in Scotland cannot wait.

In an open letter the End Child Poverty coalition is calling on The First Minister to “do the right thing” to help thousands of poverty-stricken children and families.

The letter in full:

Dear First Minister,

As a broad coalition of national organisations, community groups, academics, trade unions and faith groups, we are writing to you to urge you to use the upcoming Programme for Government to commit to doubling the Scottish Child Payment in this year’s budget.

We welcome the Scottish Government’s commitment to tackling child poverty, evidenced in the setting of statutory child poverty targets, introducing the Scottish Child Payment and the upcoming incorporation of the United Nations Convention on the Rights of the Child. These steps have laid the foundation for tackling child poverty in Scotland and we have been delighted that they have been supported across Scotland’s political spectrum.

This cross-party agreement was also evident in May’s Holyrood elections, when all Scotland’s five main political parties committed to doubling the Scottish Child Payment. Such political consensus is welcome, and provides the opportunity for your government to act quickly and decisively in doubling the payment now.

To do so would provide a lifeline to families who are struggling to stay afloat. Even before Covid-19, people across Scotland were being swept up in a rising tide of poverty, with child poverty rising in every Scottish local authority. And the pandemic has exacerbated existing inequalities in Scotland and pulled many more people – particularly women, disabled people, and Black and minority ethnic people – into hardship.

With women’s poverty being inextricably linked to child poverty, the pandemic’s impact has pulled children across Scotland ever deeper into poverty. It has hit lone parents – the overwhelming majority of whom are women – particularly hard, a group already disproportionately affected by years of social security cuts.

Unlocking people from this poverty requires long-term work to tackle the structural inequalities around the labour market – particularly for women, disabled people and Black and minority ethnic people – and it will also require action like further expanding childcare provision. But we also need action now to boost incomes in the short term.

Every level of government has a duty to boost incomes where it can, and we are clear that the UK Government must scrap its planned and unjust £20 Universal Credit cut. But just as the UK Government has a moral responsibility to do the right thing, so too does the Scottish Government have a moral responsibility to use all of the powers at its disposal to loosen the grip of poverty on people’s lives.

We have the powers, we have the urgent need, and we have the cross-party consensus to double the Scottish Child Payment. If your government is to truly make ending child poverty a ‘national mission’, and if we are to ensure that a more just Scotland emerges from the pandemic, then we must not delay. Children growing up in the grip of poverty right now – as well as their parents and care-givers – simply cannot endure until the end of this Parliament to be unlocked from poverty. Their lives and life chances are too important for this action to wait.

The evidence is clear that if it is doubled now, it will represent the single most impactful action that could be taken to help meet the interim child poverty targets in 2023, and would signal that ending child poverty will be a defining priority for this Scottish Government and Scottish Parliament. If it is not, more and more children will be pulled into poverty and the opportunity to meet the interim child poverty targets will be missed. Under the current roll out plan and value, the Scottish Child Payment will reduce poverty in Scotland by between 2 and 3 percentage points. This could leave child poverty rates as high as 26% in 2023/24, when the interim target in legislation for that year is 18%. We cannot allow that to happen.

We therefore urge your government to do the right thing, to capitalise on the cross-party consensus that already exists, and to commit to doubling the Scottish Child Payment in this year’s budget. We look forward to your response.

Kind regards,

Peter Kelly, Director, Poverty Alliance

Claire Telfer, Head of Scotland, Save the Children

Paul Carberry, Director for Scotland, Action for Children

SallyAnn Kelly, Chief Executive Officer, Aberlour

John Dickie, Director, CPAG Scotland

Martin Crewe, Director, Barnardo’s Scotland

Jamie Livingstone, Head of Oxfam Scotland

Satwat Rehman, Director, One Parent Families Scotland (OPFS)

Amy Woodhouse, Joint Interim CEO, Children in Scotland

Christine Carlin, Scotland Director, Home-Start UK

Clare Simpson, Manager, Parenting Across Scotland

Anna Ritchie Allan, Executive Director, Close the Gap

Polly Jones, Head of Scotland, The Trussell Trust

Mary Glasgow, Chief Executive, Children 1st

Eilidh Dickson, Policy and Parliamentary Manager, Engender

Hugh Foy, Director, Xaverians UK Region

Russell Gunson, Director, IPPR Scotland

Dr Patrycja Kupiec, CEO, YWCA Scotland – The Young Women’s Movement

The Rt Hon Lord Wallace of Tankerness QC (Jim Wallace), Moderator of the General Assembly, The Church of Scotland

Emma Cormack, Chief Executive Officer, The Health Agency

Gillian Kirkwood, Chief Executive, Y sort it Youth Centre

Agnes Tolmie, Chair, Scottish Women’s Convention

Linda Tuthill, CEO, The Action Group

Steven McCluskey, CEO, Bikes for Refugees

Trishna Singh OBE, Director, Sikh Sanjog

Professor Adrian Sinfield, Emeritus Professor of Social Policy, University of Edinburgh

Jimmy Wilson, CEO, FARE Scotland

Ian Bruce, Chief Executive, Glasgow CVS

Revd Gary Noonan, Minister, Houston and Killellan Kirk

Jacqui Reid, Project Lead, EBI Unites

Innes McMinn, Manager, Independent Living Support

Suzanne Slavin, CEO, Ayr Housing Aid Centre

Fiona Rae, Interim Chief Executive, Community Food Initiatives North East

Mhairi Snowden, Director, Human Rights Consortium Scotland

Juliet Harris, Director, Together (Scottish Alliance for Children’s Rights

Tressa Burke, CEO, Glasgow Disability Alliance

Martin Wilkie-McFarlane, Director, Wellhouse Housing Association

Morna Simpkins, Scotland Director, MS Society

Kara Batchelor, Operations Manager, Alexander’s Community Development

Murray Dawson, Chief Executive, Station House Media Unit

Ashli Mullen, Creative Director, Friends of Romano Lav

Professor John McKendrick, Co-Director of the Scottish Poverty and Inequality Research Unit, Glasgow Caledonian University

Justina Murray, Chief Executive Officer, Scottish Families Affected by Drugs and Alcohol

Rob McDowall, Chair, Welfare Scotland

Karen Birch, Chief Officer, Abundant Borders

Liane Coia, Operations Manager, Maryhill Integration Network

Annie Tothill, Project Worker, Kairos Women+

Traci Kirkland, Head of Charity, Govan Community Project

Emma Jackson, National Director Scotland, Christians Against Poverty

Alison Bavidge, National Director, Scottish Association of Social Work

Mairi McCallum, Project Manager, Moray Food Plus

Zoe Jordan, Stepping Stones North Edinburgh

Chris Birt, Deputy Director Scotland, Joseph Rowntree Foundation

Martin Dorchester, CEO, Includem

Bethany Biggar, Director, Edinburgh Food Project

Rachel MacDonnell, Bureau Manager, East & Central Sutherland Citizens Advice Bureau

Larry Flanagan, General Secretary, EIS

Shona Blakeley, Executive Director, Women’s Fund for Scotland

Rhona Willder, Development Manager, Scottish Independent Advocacy Alliance

Joan McClure, Manager, Easterhouse Citizens Advice Bureau

Roy O’Kane FRSA, Chief Officer, Kanzen Karate

Craig Samuel, Scotland Representative, National Association of Welfare Rights Advisers

Margaret Caldwell, Chairperson, Care for Carers

Louise Hunter, Chief Executive, Who Cares? Scotland

Derek Mitchell, CEO, Citizens Advice Scotland

Emma Walker, Director, Camphill Scotland

Claire Burns, Director, CELCIS (Centre for Excellence for Children’s Care and Protection)

Moira Tasker, Chief Executive Officer, Inclusion Scotland

David Nallaratnam, Director, Cross Ethnic

Professor Ian Welsh OBE, Chief Executive, Health and Social Care Alliance (the ALLIANCE)

Louise Morgan, Director for Scotland, Carers Trust Scotland

Teresa Sutherland, Interim Executive Manager, Community Help and Advice Initiative

Graeme McAlister, Chief Executive, Scottish Childminding Association

Roz Foyer, General Secretary, STUC

Rachel Adamson, Co-Director, Zero Tolerance

Susan Capaldi, Manager, Home Start Cowdenbeath

Sabine Goodwin, Coordinator, Independent Food Aid Network (IFAN)

Pat Rafferty, Scottish Secretary, Unite Scotland

Gavin Yates, CEO, Homeless Action Scotland

Lorraine Kelly, Scottish Policy Officer, Magic Breakfast

Rosyn Neely, CEO, Edinburgh Children’s Hospital Charity

Biddy Kelly, Managing Director, Fresh Start

Professor Annette Hastings, Professor of Urban Studies, University of Glasgow

Margo Uprichard, Chief Executive Officer, The Louise Project

Alison Watson, Director, Shelter Scotland

Frazer Scott, CEO, Energy Action Scotland

Jane Brumpton, Chief Executive, Early Years Scotland

Alan Thornburrow, Country Director, Business in the Community Scotland

Pete Ritchie, Executive Director, Nourish Scotland

Elaine Downie, Co-ordinator, Poverty Truth Community

Jen Broadhurst, Bureau Manager, Argyll & Bute Citizens Advice Bureau

David Walsh, Public Health Programme Manager, Glasgow Centre for Population Health

Ewan Aitken, CEO, Cyrenians

Dr Marsha Scott, Chief Executive, Scottish Women’s Aid

John McIntyre, Principal Trustee, Ferguslie Community Development Trust

Elodie Mignard, Programme Manager, Scottish Refugee Council

Dr Patrick Roach, General Secretary, NASUWT

Genevieve Ileris, British Psychological Society

Tanveer Parnez, Director of National Development, BEMIS

Sebastian Fischer, Chief Executive, VOCAL (Voices of Carers Across Lothian)

Professor Nick Bailey, Professor of Urban Studies, University of Glasgow

Professor Sharon Wright, Professor of Social Policy, University of Glasgow

Rami Okasha, Chief Executive, CHAS (Children’s Hospices Across Scotland)

Kate Polson, Chief Executive, Rock Trust

Jimmy Paul, Director, WEAll Scotland

Claire Cairns, Director, Coalition of Carers in Scotland

Jan Savage, Director of Campaigns and Membership, ENABLE Scotland

Alison Wright, CEO, Carers of West Lothian

Frank Mosson, Manager, Bridgeton Citizens Advice Bureau

Sharon McAulay, Chief Executive, STAR Project

Professor James Mitchell, Professor of Public Policy, University of Edinburgh

John Cassidy, Chair, Scottish Communities for Health and Wellbeing

Brian Reid, Manager, Scottish Christian Alliance

Lesley Ross, Project Manager Youth Work Services, Pilton Youth and Children’s Project

Sally Thomas, Chief Executive, Scottish Federation of Housing Associations

Duncan Cuthill, CEO, Edinburgh City Mission

Marguerite Hunter Blair, Chief Executive, Play Scotland

Sharon Colvin, CEO, 3D Drumchapel

Paul Stuart, Branch Secretary, UNISON Housing & Care Scotland Branch

Kelly McCann, Clackmannanshire Women’s Aid

‘Scotland must unite against austerity’

‘We need to present a united front against these measures and I would encourage every organisation working to tackle inequalities and fighting poverty, to add their voice to this debate’ – Social Justice Secretary Alex Neil

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Third sector organisations need to stand united to fight Westminster’s proposed £12 billion cuts, Social Justice Secretary Alex Neil told conference delegates yesterday.

Speaking at the Child Poverty Action Group  Scotland’s annual conference, the Cabinet Secretary encouraged delegates and welfare workers to work together to bring the UK Government’s austerity agenda to a halt.

He said the first of the cuts is the UK Government’s Full Employment and Welfare Bill which will freeze the main rates of the majority of working age benefit tax credits and child benefit for two years from 2016-17, and reduce benefit expenditure in Scotland by around £130 million.

The Institute of Fiscal Studies (IFS) estimate that 11 million families in the UK, including an estimated one million families in Scotland, will be affected by the plans to freeze benefits.

Mr Neil said: “The UK Government’s proposed £12 billion cuts will have a detrimental impact on Scotland and will do nothing to tackle the scourge of child poverty.

“We need to present a united front against these additional measures and I would encourage every organisation working to tackle inequalities and fighting poverty, to add their voice to this debate.

“Through our Child Poverty Strategy we are already working with partners to reduce levels of poverty amongst households with children and to break inter-generational cycles of poverty, inequality and deprivation.

“The Scottish Government, alongside CPAG and others wants a more equal society, we want to create jobs and lift people out of poverty, and we will continue to listen to the advice of organisations who are working directly with families across the country.

“However if we are having to fund mitigation then we have a much harder challenge ahead of us. Our resources should be used to take positive action and tackle existing inequalities, not fight just to keep people at a standing position.

“The Smith Commission proposals gave the Scottish Government limited powers to make real inroads into child poverty outcomes. We will work with all concerned to make sure that the new powers we have will lead to better results for people in Scotland.”

John Dickie the Director of Child Poverty Action Group in Scotland said: “With key areas of social security set to be devolved to the Scottish Parliament today’s Child Poverty Action Group conference brings together over 180 frontline advisers to get the latest details on what exactly is being proposed and share ideas on how new powers might be used to improve benefit support and tackle poverty more effectively.

“The discussion is crucial coming as it does against a backdrop of rising child poverty and the threat of further cuts to the UK benefits that families both in and out of work rely on.”