Almost one in four families across the UK will get £326 sent directly to them from today, with the second instalment of £324 sent later this year as part of the UK Government’s £37 billion support package.
£326 – the first of two cost of living payments – will automatically hit seven million bank accounts between today and 31 July 2022 as part of the government’s £37 billion support package
Second instalment of £324 will follow from the autumn, with separate payments for pensioners and disabled people also coming later this year
Tax credit claimants will receive their first cost of living instalment by autumn
Over eight million households on means-tested benefits will automatically get the first instalment of £326 from this month.
This means that, combined with other support, millions of low-income households across the UK will receive at least £1,200 from the government by Christmas to ease Cost of Living pressures.
On top of that, nearly one in ten people will get the £150 disability payment this Autumn, and over 8 million pensioner households could get an extra £300 from Winter Fuel Payments in November and December.
Prime Minister Boris Johnson said: “Just as we looked after people during lockdown, we will help them get through these tough economic times.
“Today’s payment is the signal to millions of families that we are on their side and we have already promised more cash in the autumn, alongside other measures – including our Help for Households – to support the vulnerable and ease the burden.”
Work and Pensions Secretary, Thérèse Coffey said: “Our help for households will begin landing in bank accounts today as we make sure those on the lowest incomes get the support they need in the face of rising costs.
“This first instalment of £326 should reach all eligible low-income households by the end of July.”
Chancellor of the Exchequer, Nadhim Zahawi said: “It’s great that millions of the families who are most in need are starting to receive their Cost of Living Payments, which I know will be a massive help for people who are struggling.
“Alongside tax cuts, changes to Universal Credit and the Household Support Fund, these payments are a vital part of our £37 billion support package to help people deal with rising prices.”
Most people entitled to the first instalment of the Cost of Living payment will receive it between now and 31 July 2022. Households who are eligible because they receive tax credits and no other eligible benefits will receive their first instalment from HMRC in the autumn, and the second instalment in the winter.
DWP will administer payments for customers on all other eligible means-tested benefits, and customers do not need to contact the government or apply for the payment at any stage.
In addition to the £650 Cost of Living Payment, all domestic energy customers in the UK will receive a £400 grant to help with energy bills, and those in Council Tax bands A-D in England will get an extra £150, which has already been sent to many households. This brings support for millions to £1,200 by the end of the year.
The disability and pensioner payments come in addition to this, as does any support from the Household Support Fund, which was recently extended through to March 2023 with £421 million additional funding.
It is now worth £1.263 billion, and combined with £237 million for devolved nations, means this support package now stands at £1.5 billion. The Household Support Fund is designed to help low-income households in England with food and energy bills, and is distributed by local authorities, who know their areas best.
Total UK Government support this year for low-income families stands at £37 billion, a figure which includes a recent rise to £12,570 for the National Insurance starting thresholds. This will benefit 30 million working people and is worth £330 to a typical employee.
Family benefits, free school meals and concessionary travel are part of support helping households to mitigate the increased cost of living.
Funding for 2022-23 includes:
£294.4 million for Scottish Child Payment and other family benefits, including Best Start Grants, Best Start Foods and Bridging Payments
£64 million for universal provision of free school meals during term time for children in p4 and p5 and alternative holiday provision for eligible children
£306 million for concessionary travel
£437 million to help with household bills via Council Tax Reduction and Water Charge Reduction
Social Justice Secretary Shona Robison said: “Within our limited budget, we have allocated almost £3 billion in this financial year to help families and households face the increased cost of living. This includes support for energy bills, childcare, health and travel, as well as social security payments not available anywhere else in the UK.
“We are increasing our Scottish Child Payment to £25 per child per week when we extend it to under 16s by the end of 2022. This will mean a 150% increase in less than a year and around 400,000 children eligible for this vital anti-poverty benefit.
“Westminster holds most of the powers needed to tackle the cost of living crisis as well as borrowing and resourcing powers we do not currently have. This includes energy, the minimum wage, National Insurance and 85% of social security spending.
“The UK Government’s decade of austerity and welfare reforms have placed people in a particularly precarious position. That is why we have continually urged them to use all the powers and fiscal headroom at their disposal to put together a comprehensive action plan to address the long term impacts of rising prices and provide immediate support to struggling households.
“In the meantime we will continue to use our limited budget and constrained powers to work for people and help cushion the impact of UK Government policies.”
30 million people across the UK will benefit from the biggest personal tax cut in a decade from today
‘Hard working Brits’ will save up to £330 per year – 2.2 million lifted out of personal tax altogether
70% of UK workers now paying less National Insurance, even after accounting for the Health and Social Care Levy
30 million people across the UK will benefit from the biggest personal tax in a decade from today – with hard working Brits saving up to £330 per year.
The £6 billion tax cut will see the level at which people start paying National Insurance rise to £12,570 – lifting 2.2 million people out of paying any personal tax and ensuring people get to keep more of the money they earn.
The threshold change means that 70% of UK workers will pay less National Insurance, even after accounting for the Health and Social Care Levy that is funding the biggest catch up programme in NHS history and putting an end to spiralling social care costs.
Speaking before his resignation last night, formerChancellor of the Exchequer Rishi Sunak said: “I know rising prices are putting pressure on hard-working families across the UK – which is why we’ve stepped in to help to ease the burden with a £37 billion package of support this year, including at least £1,200 going directly to the 8 million most vulnerable families.
“Today marks the next stage in that package, with the biggest personal tax cut in over a decade coming in to help millions of workers across the UK keep up to £330 more each year.”
The Prime Minister (at time of writing, anyway – Ed.) said: “We know it’s tough for many families across the UK, but we want you to know that this government is on your side.
“Today’s tax cut means around 70 per cent of British workers will pay less National Insurance – even after accounting for the Health and Social Care Levy that is funding the biggest catch up programme in NHS history and putting an end spiralling social care costs.
“So whether you are a receptionist, work in hospitality or are a delivery driver, this tax cut is likely to make you and your family better off.”
From today the level at which people start paying National Insurance has risen from £9,880 to £12,570.
This change means that millions of people working across hundreds of different industries across the UK will now be better off.
This includes bricklayers who’ll save £218, care workers who’ll save £324, hairdressers who will get a £118 benefit and nursery assistants who’ll get a £343 yearly boost.
Workers can check their salary in the government’s online tool to estimate the amount they could save between July 2022 to July 2023.
The last major personal tax cut of today’s magnitude was nearly ten years ago, when the income tax personal allowance increased by £1,100 in 2013. Today’s threshold change is more than double that, as working people are now able to hold on to an extra £2,690 free from tax.
Today’s change to National Insurance thresholds comes as part of the Chancellor’s wider vision for a lower tax economy. At the Spring Statement Mr Sunak announced a 1p income tax cut in 2024 – which will be the first cut to the basic rate in 16 years and will save the average taxpayer a further £175 a year.
The Chancellor also committed to cutting and reforming business taxes later this year in the autumn, to help spur business growth and productivity. The government is currently working with industry on how best to do that.
The increase to the National Insurance thresholds will leave around 76% of National Insurance payers in the North East better, 75% in the North West and Merseyside, and 62% in London.
Today’s landmark personal tax cut also comes as the government launched new Help for Households campaign designed to raise awareness and signpost people to the £37 billion in support on offer and targeted at those most in need.
The support provides millions of the most vulnerable households at least £1,200 of support in total this year to help with the cost of living, with all domestic electricity customers receiving at least £400 to help with their bills.
It also includes a 5p fuel duty cut – the biggest cut ever to fuel duty rates, a rise in the national living wage to give full time workers an extra £1,000 and a cut to the Universal Credit taper rate to provide over 1 million families an extra £1,000.
The NICs threshold change takes effect following the government making tough but responsible decisions to manage the public finances responsibly and choosing not to saddle future generations with almost £400 billion of debt used to protect jobs and the economy during the pandemic – worth around £5,500 for every person in the UK.
The government had planned for this good news story to be the big news event of today, but those plans were scuppered by the resignation of two senior cabinet ministers last night. As former Prime Minister Harold MacMillan once ruefully observed: “Events, dear boy. Events” …
People of our area alongside many communities have had a very tough time under this disgraceful Tory led government.
It has been no accident but deliberate policy.
The manipulation of the fuel prices causing absolute confusion.
But not for the fuel suppliers, No!! In particular the shareholders of the fuel suppliers who are making hundreds of millions of pounds in profit at the same time.
In contrast the Tories are ‘promising’ another 10% rise in the cost of living this year!
The lesson is there for us: it’s time the people slung out the Tories like they did in Honiton recently.
As the cost of living crisis worsens, on Sunday 26th June and Sunday 3rd July Greenpeace volunteers spoke to people on Middle Meadow Walk and on Portobello Promenade about the connection between rising energy bills, Putin’s war, and the climate crisis.
They invited the public to write down how much their energy bills have already increased, and stick these messages onto a life-size cardboard cut-out of Chancellor Rishi Sunak. Volunteers found that most people’s bills had at least doubled and many were fearful of further increases.
Jessie from Portobello wrote that her rising bills meant she hadn’t been able to put her heating on and was worried about what she would do in the Autumn, while another local wrote ‘my bills are not sustainable. Invest in greener energy!’
These messages, along with hundreds of others from across the UK, will be delivered directly to the Government so that Ministers can see how much people are really having to pay to heat their homes and cook food.
Anke, a Greenpeace volunteer from Bruntsfield, said: “‘I was shocked to hear how many more local people are worrying about being pushed into fuel poverty when bills rise again in the autumn.
“Greenpeace Edinburgh volunteers are calling on the Chancellor to deliver an Emergency Energy Package that stops fuelling rising energy bills, the climate crisis and Putin’s war, and on our local MPs to keep the pressure on the Government until they do the right thing.”
On 1st April energy bills went up by an average of £700, pushing 2.5 million UK households into fuel poverty. According to data published by Energy Action Scotland, as of last December, 24% of all households in Scotland live in fuel poverty.
In October bills will rise again, potentially reaching up to an estimated £2600 per year, which could put 1 in 3 households in fuel poverty, according to National Energy Action. Life is only going to get harder for people in Edinburgh.
Although the Government has recently declared a windfall tax on oil and gas producers, this will only provide temporary relief and does nothing to address the causes of the climate or cost of living crises.
Greenpeace Edinburgh is calling for a tax rate of 70%, which could bring in an extra £13.4bn per year. £7.9bn of this tax should go towards the six million households experiencing fuel poverty. This would leave just over £5 billion to invest in the nationwide roll out of heat pumps, insulation and other energy efficiency measures as well as increasing investment in renewable energy infrastructure.
Anke continued: “This Government has failed to get a grip on the climate and cost of living crises. We’ll keep facing these problems for years to come while oil and gas giants pump out planet-trashing emissions and enjoy sky high profits.
“Join us in calling on the Chancellor to make them pay up”.
One Parent Familes Scotland asked single parents accessing their services about the main issues affecting their lives and what needs to be done to tackle them.
How will the rising cost of living affect the Scottish Budget in 2023-24? Will the Scottish Government’s proposals for reforming the public service deliver the efficiencies expected?
The committee is seeking views from organisations and the public to inform its pre-budget scrutiny work, prior to the Scottish Government publishing its 2023/24 budget later this year.
Committee Convener Kenneth Gibson MSP said: “The next Scottish Budget will be challenging as the current cost-of-living crisis impacts on Scotland.
The Committee is therefore keen to hear from organisations and individuals how the Scottish Government’s Budget in 2023-24 should respond to this crisis.
“We also want to hear views on how the government’s proposed reform of the public service will support its future spending plans.”
Mr Gibson concluded: “Using the government’s resource spending review announced in May, we will focus our pre-budget scrutiny on the proposals for reforming the public service, the impact of the cost of living crisis on the Scottish Budget, and how spending priorities might affect the delivery of national outcomes.”
More than eight million households across the whole of the UK will get a cash payment from July to ease cost of living pressures, Work and Pensions Secretary Thérèse Coffey set out detailed plans yesterday.
Millions will receive the first of two cost of living instalments totalling £650 from 14 July 2022, part of the £1,200 support package this year
Initial automatic instalment will be £326, with the rest to follow in a second instalment in the autumn
Comes as part of £37 billion government package to help families with cost of living pressures
The first instalment of the £650 for qualifying low income households in England, Wales, Scotland and Northern Ireland will land in bank accounts from 14 July 2022, continuing to the end of the month.
The move will see millions of households initially £326 better off as the government delivers significant interventions to support groups who are most vulnerable to rising costs. In total, millions of households will receive at least £1,200 from the government this year to help cover rising costs.
Work and Pensions Secretary, Thérèse Coffey said: “With millions of the lowest-income households soon seeing the first of two cash instalments land into their bank accounts, we are taking action to directly help families with the cost of living.
“This one-off payment totalling £650 is part of our £37 billion cost of living support package that will put an extra £1,200 into the pockets of those most in need.”
Chancellor of the Exchequer, Rishi Sunak added: “We have a responsibility to protect those who are paying the highest price for rising inflation, and we are stepping up to help.
“In July over 8 million people will get their first £326 payment to help with rising prices, as part of a package worth at least £1,200 for vulnerable families. I said we would stand by people when they needed help, and we are.”
The second instalment of £324 will be sent to qualifying low income households in the Autumn. The payments are designed to be deliberately slightly unequal to minimise fraud risks from those who may seek to exploit this system.
The eligibility date for the second instalment will be announced soon.
Low-income households are benefiting from government support in a variety of different ways this year as global inflationary pressures, exacerbated by the unjust war in Ukraine, have caused prices to rise for several essentials.
The government understands that many people are worried about the impact these rising prices will have on their household finances, which is why £37 billion of support is being provided to boost budgets and mitigate the worst of these pressures.
Support includes the direct payment of £650 for over 8 million households on benefits, a separate £300 payment for pensioners, and a £150 payment for disabled people, which can be paid on top of the £650 payment.
This is on top of £400 for all households to help with energy bills, and an extra £150 for properties in Council Tax bands A-D, meaning millions of the lowest-income households will receive at least £1,200 in support this year.
This is all in addition to changes to the Universal Credit taper rate and work allowances worth £1,000 a year on average for 1.7 million working claimants, a rise in the National Living Wage to £9.50 an hour, and a tax cut for around 30 million workers through a rise in National Insurance contribution thresholds.
The government has also expanded support for the Household Support Fund – which helps people with food and energy bills – with an extra £421 million, on top of £79 million for devolved nations; the total value of this support now stands at £1.5 billion. Fuel duty was also cut by 5p per litre for 12 months in March 2022, and alcohol duty has been frozen for 2022/23.
You can read more about the UK Government’s cost of living support and what is available here.
Edinburgh Pentlands MSP Gordon Macdonald has welcomed the planned introduction of the new Low Income Winter Heating Assistance benefit to help households both across the Edinburgh Pentlands constituency and the wider city pay their energy bills.
The support is being introduced by the SNP Scottish Government and will guarantee an annual payment of £50 to around 400,000 low income households from February 2023.
It replaces the UK government’s Cold Weather payments which were only triggered during a ‘cold spell’ of seven consecutive days below zero degrees, whilst the new payment from the Scottish Government will provide a reliable, stable guaranteed payment in winter, no matter the weather.
It will be the thirteenth social security payment introduced by the SNP Scottish Government and will be only available in Scotland.
Commenting, Gordon Macdonald said: “The SNP Scottish Government is providing a guaranteed payment of £50 to low-income households across Edinburgh to help pay their energy bills every winter, starting in February 2023.
“Once again the SNP Scottish Government is stepping up to support households within its limited budget, and despite the majority of powers lying with the Tories at Westminster.
“The Scottish Government’s annual £20m investment will mean households will get an automatic payment. The UK Cold Weather payments only reached 11,000 households in 2021/22.
“As the Scottish Government continues to step up and provide support to households across Scotland, it does so with one hand tied behind its back by the UK Tory government.
“That is why it is only with the full powers of independence can we start to build a fairer, more equal country.”
Public sector workers seem set on a collision course with local and national government over inadequate wage rises …
The General Secretary Designate of teachers union the EIS yesterday urged all of Scotland’s teachers to get active in the campaign to secure a 10% pay rise.
Ms Bradley addressed delegates on the final day of the EIS Annual General Meeting (AGM) at Dundee Caird Hall, and just ahead of a rally in support of the EIS ‘Pay Attention’ Campaign in the Civic Square outside the conference venue.
Addressing the AGM, Ms Bradley said, “The obvious and pressing priority is our Pay Attention campaign. We’ve staked our claim, nailed our colours to the mast … now we need to win.
“Listening to our speakers on the issue of pay over the last few days, I know we’ve got what it takes to win this. To win it because it’s simply unacceptable that teachers and other public sector workers would be expected to bear the burden of yet another crisis that’s been created by the economic vandalism of the Tory government and a Cabinet of millionaires …utterly morally bankrupt and more intent on callous racketeering and profiteering than they are on caring about people and supporting recovery.”
“We can’t allow COSLA to peddle the myth of the One Workforce agenda. Or the Scottish Government to quietly sit there on the side-lines being let off the hook by a raft of egalitarian-sounding rhetoric that’s in truth about pay suppression for teachers and by dint of that the rest of the public sector. We know One Workforce is utter fallacy and I have a sense that the other public sector unions know it as well.”
“If we’re to win a pay rise that protects teachers’ incomes from the worst of the cost of living increases, from every corner of the union, we need to keep building what will be a formidable display of our union strength. We’ve started building this – the press statements, the campaign materials, the branch meetings, the petition, the social media activity, and the demo outside this building later this morning.”
“With full-blown organising, comms and political campaigning… synchronicity of actions with local associations, we’ll be ballot ready, strike ready by October and with a strong industrial action strategy mapped out so that we’re strike ready and strike able.
“From the speeches and applause that we’ve heard this AGM about pay and the other inter-related injustices it sounds like you’re well up for taking this on …and so am I!”
COSLA STATEMENT ON PAY NEGOTIATIONS
COSLA is deeply disappointed that the First Minister and Cabinet Secretary for Finance have refused the request of all Council Leaders to engage in discussions regarding the current settlement for Local Government and its significant impact on our ongoing pay negotiations.
The implications of the Scottish Government’s spending plans for the rest of the parliament are deeply concerning for communities across Scotland and have further increased the already strong likelihood of industrial action in the coming months.
Scottish Government continues to fail to respect the fundamental role Local Government and its workforce has in addressing their own priorities of tackling child poverty, climate change and a stronger economy.
The ‘Resource Spending Review’, published on 31 May, shows that Local Government’s core funding for the next 3 years will remain static at time when inflation and energy costs are soaring.
This “flat-cash” scenario gives no scope to recognising the essential work of our staff, whose expectations, quite rightly, are being influenced by Scottish Government’s decisions in relation to other parts of the public sector. A suggestion that increases in welfare payments will mitigate the cost of living crisis do not recognise that our staff should not have to depend on such payments to make ends meet.
As things stand, the only option available to Councils is yet fewer jobs and cuts to services that are essential to communities everywhere.
COSLA’s Resources Spokesperson Gail Macgregor said: “COSLA, every year, argues for fair funding for Local Government to maintain the essential services our communities rely on.
“No increase in our core funding damages these services and limits the options we have in successfully concluding pay negotiations. Refusal to engage in discussion will only see this continue and our communities will see and feel the difference.”
The Fraser of Allander Institute has recognised the impact on councils: “The local government budget will decline by 7% in real terms between 2022/23 and 2026/27 … the real terms erosion of the funding allocations of local authorities represents the continuation of a longer trend.”
UNISON, Scotland’s largest local government union, will be balloting its members in a dispute over pay. The union is planning targeted strike action – this means select groups of workers will be balloted.
UNISON is campaigning for a pay rise for ALL local government workers.
The groups that will be balloted for strike action are members employed working in schools, who provide services to the running and operation of the school, and all members working in early years and in waste and recycling services. The union is recommending that vote ‘YES’ in favour of strike action.
The ballot will run from 10 June and will close on 26 July. It is vital that all ballots are posted back in good time to ensure we receive them by closing date.
Why are we balloting?
Having consistently worked above and beyond to keep our key services going over the past two years of the pandemic, and with the cost of living spiralling, COSLA’s offer of a 2 per cent pay increase for local government workers is nothing short of an insult.
While politicians have raced to praise your efforts their warm words have not been matched by action.
Earlier this year we ran an online consultation to see what you and other local government members thought of the employers’ 2022 pay offer. It was no surprise that the overwhelming majority of you voted to reject the offer and indicated your willingness to take action to achieve a better deal.
Nothing has changed since then and we now need you to vote YES to take strike action to remind your employers exactly how you feel.
This offer is derisory. It is less than the Scottish Public Sector Pay policy, falls far short of our pay claim and is significantly below current levels of inflation. It will exacerbate the gap between those on the lowest and those on the highest rates of pay.
And it is in sharp contrast to the 5.2% increase that councillors themselves have just received from 1st April 2022.
GMB Scotland has attacked “failure at all levels of government” as an industrial action ballot across local government gets underway this morning (Monday 6 June) against the threats of a 2 per cent pay offer and swingeing cuts to local jobs and services.
Nearly 10,000 GMB members in waste and cleansing and schools and early years services will be asked if they back strikes in the face of a pay offer from employer body COSLA amounting to less than £10 a week for staff earning under £25,000 a year.
Joint trade unions in local government wrote to the First Minister and the Finance Secretary last week seeking urgent talks and warned about the consequences for council workers of significantly below inflation pay with the cost of living at a forty-year high.
The ballot, which runs throughout the summer until Tuesday 26 July, also takes place amid dire forecasts for local government budgets following the Scottish Government’s spending review plans.
GMB Scotland Senior Organiser Keir Greenaway warned: “Council workers and the vital services they deliver are firmly in the sights of Kate Forbes’s cuts agenda, and if left unchallenged the lowest paid will pay the highest price in the biggest cost-of-living crisis for 40 years.
“This is what years of failure at all levels of government looks like – a decade of failed austerity, the passing on of cuts to communities, and a meek acceptance of the consequences locally. It’s a far cry from the doorstep applause of virtue-signalling political leaders just two years ago.
“It shows everyone there are no political superheroes and if you want wages that confront soaring inflation then you need to organise and fight for it.
“That’s exactly what our members are doing and unless an improved pay offer is tabled then industrial action looks inevitable.”
RMT launch 3 days of national strike action across the railway network
Over 50,000 railway workers will walkout as part of 3 days of national strike action later this month, in the biggest dispute on the network since 1989.
The union will shut down the country’s railway network on 21st, 23rd and 25th June, due to the inability of the rail employers to come to a negotiated settlement with RMT.
Network Rail and the train operating companies have subjected their staff to multiyear pay freezes and plan to cut thousands of jobs which will make the railways unsafe.
Despite intense talks with the rail bosses, RMT has not been able to secure a pay proposal nor a guarantee of no compulsory redundancies.
In a separate dispute over pensions and job losses, London Underground RMT members will take strike action on June 21st.
RMT general secretary Mick Lynch said: “Railway workers have been treated appallingly and despite our best efforts in negotiations, the rail industry with the support of the government has failed to take their concerns seriously.
“We have a cost-of-living crisis, and it is unacceptable for railway workers to either lose their jobs or face another year of a pay freeze when inflation is at 11.1pc and rising.
“Our union will now embark on a sustained campaign of industrial action which will shut down the railway system.
“Rail companies are making at least £500m a year in profits, whilst fat cat rail bosses have been paid millions during the Covid-19 pandemic.
“This unfairness is fuelling our members anger and their determination to win a fair settlement.
“RMT is open to meaningful negotiations with rail bosses and ministers, but they will need to come up with new proposals to prevent months of disruption on our railways.”
A snap poll from the Trades Union Congress (TUC) and Opinium showed the cost of living was the top issue for 75% of the Scottish electorate when casting their ballot in May.
This was followed by 60% citing the NHS as their primary concern, with public services (21%), housing (15%), Brexit (20%) and the environment (19%) all taking voter preference over the constitution (14%).
The news was cited as a ‘wake-up call’ from the Scottish Trades Union Congress leader Roz Foyer, who will host a specific cost of living crisis summit on June 17th with the Poverty Alliance.
Ms Foyer said: “These elections should be a wake-up call to all levels of government – local, Scottish and UK – that workers throughout the country need urgent and sustained help in the face of this brutal attack on their living standards.
“By far and away, with 75% of the electorate in Scotland citing the cost of living crisis as their top concern, with health, housing and the environment their taking preference over the constitution, all incoming councillors must make this their most urgent priority.
“Our local government manifesto made clear we need sustained investment from the Scottish Government to local authorities throughout the country, helping to deliver a real terms pay increase for our public sector workers. This is in addition to delivering on rent freezes, settling equal pay disputes and introducing universal free school meals throughout the country.
“This is the type of real terms action we need from councillors and government throughout Scotland. Our movement, with affiliates currently balloting for industrial action across the country, are not standing idle whilst workers face this material threat to their living conditions.”
