Tag: cost of living crisis

Digital Divide: Older people struggling to pay for broadband at risk of further financial losses

Nearly half (44%) of older people in Scotland on a low income1 have struggled to keep up with their broadband bill in the last 6 months, according to new research from the older people’s charity Independent Age.

Of that number, 18% found it a constant struggle, and 26% struggled from time to time.

Independent Age says the findings from YouGov commissioned polling raise fears that the cost of living has deepened the ‘digital divide’ and warns that older people in financial hardship may become even more isolated and could face additional costs if they are forced to shut off their internet access.

The survey also found:

  • More than 1 in 3 (35%) older people in financial hardship said they are worried they will not be able to pay their broadband bill over the next 6 months.
  • 36% are currently having to cut back their spending on their internet, phone or TV subscription services a great deal or a fair amount.
  • Almost 1 in 10 (9%) have already cancelled broadband and phone services over the winter in an effort to save money and 6% had already taken this action before the winter began, to save money.

The charity warns that not being able to go online could mean that older people on low incomes are unable to access information about financial entitlements or services, miss out on savings by not being able to search for the best deals and lose vital social connections.

It’s calling on broadband providers to further promote their social tariffs so that older people in financial hardship are aware that support for their internet costs is available. The charity also believes the Government has a role to play in  promoting social tariffs as part of the support available during the cost of living crisis.

Social tariffs are cheaper broadband contracts for those receiving means tested benefits, such as Pension Credit (the State Pension top-up for those on a low income). However, current take-up is low, with just 5.1% of eligible households using them2,and Independent Age say that eligible older people are going without as a result.

Morgan Vine, Head of Policy and Influencing at Independent Age, said: “The choice to engage online shouldn’t be taken away due to cost. We’re hearing from people in later life who are struggling to pay their broadband bills, cancelling their services, or making considerable sacrifices to afford this expense, such as going without fresh food.

“Cancelling broadband can mean someone misses out on the best deals, social connections with friends and family or on finding information about financial support they could be entitled to, such as Pension Credit or Attendance Allowance. 

“Independent Age is calling on broadband providers to do all they can to support vulnerable customers. We also think the Government has a role to play when promoting the options available now and thinking about consistency in the longer term. At the moment it’s a confusing picture for older people on low income, with each provider offering different options.

“While broadband social tariffs are available from most major providers, and can be a great help for those in financial hardship, take up is extremely low. Independent Age wants providers to proactively promote their social tariffs and target their activity at all eligible groups, including ensuring older people on a low income are not missed out.”

Details of all available social tariffs can be found on Ofcom’s website here: https://www.ofcom.org.uk/phones-telecoms-and-internet/advice-for-consumers/costs-and-billing/social-tariffs#full-list-of-available-tariffs, or people who think they might be eligible can contact their provider to find out more.

Case study – Maggie’s Story

“There’s a growing assumption that we can all do everything online now, but because of my financial situation, I’ve had to cancel my phone and Internet contracts. So now if I want to do anything that involves being on the Internet, I need to get hold of a library that’s open at certain times.

“I don’t know what’s happened in other parts of the country, but we used to have access to Wi-Fi on Greater Manchester’s buses and trams. That disappeared during COVID. I’m assuming it was taken off as a cost-saving thing because people weren’t traveling on the buses, but they’ve never put it back.

“And that doesn’t just impact older people who don’t have Wi-Fi — it impacts young families who are trying to do stuff whilst they’re out and about because they can’t afford to pay for the subscription at home.”

Cost of living crisis impacts mental health of 2 in 3 over-40s, finds UK Care Guide workforce research

Research* from the UK Care Guide has found startling levels of stress amongst the workforce aged 40 and over, with over two thirds (67%) reporting increased levels of stress thanks to the cost of living crisis.

The survey, based on the data of 1487 respondents, found that a huge 72% directly attributed their increased levels of stress to the tightening of household budgets as a result of the cost of living crisis.

While work-related factors were a major cause, half of the respondents also identified personal and family-related factors as sources of stress.

Saq Hussain of UK Care Guide commented: “Our latest UK Care Guide research reveals a worrying surge in stress levels among UK workers aged 40 and over in the face of the cost of living crisis.

“This issue cuts deeper than just affecting productivity at work. It’s intruding into individuals’ personal lives, straining relationships and fundamentally undermining their mental wellbeing.

“Amidst these challenges, it’s commendable that almost half of those surveyed have adopted some form of coping mechanism to manage their stress levels. However, the glaring outlier is the lowly 20% looking for professional mental health support. This number signifies not only a potential stigma around seeking mental health assistance, but also perhaps hints at the lack of easily accessible mental health services.

“Our findings highlight an urgent call to action for employers, healthcare organisations, and policy-makers alike. There is a pressing need to not only address the root causes of workplace stress but also to create a supportive environment that promotes mental health resources and empowers individuals to effectively manage their stress levels without fear of stigma.”

For more information on the survey, please email: media@ukcareguide.co.uk 

Edinburgh parents more anxious than ever about the cost of school uniforms

The Leith Collective launches free school uniform exchange to help worried parents this summer  

School’s out for summer but far from signalling the start of a care-free holiday, many Edinburgh parents are already worrying about how they will afford new school uniforms when the holiday is over and the new academic year begins. 

That’s according to one local Community Interest Company, The Leith Collective, who are reporting a higher level of anxiety than ever amongst Edinburgh parents, many of whom have said they will be cutting back on summer holiday treats this year to meet the rising cost of essentials such as school uniforms.

And so, The Leith Collective is acting now to help alleviate some of that anxiety with the launch of their free school uniform exchange.

Taking place at The Leith Collective stores in Edinburgh’s Ocean Terminal and Fort Kinnaird as well as the Glasgow’s St Enoch Centre, this initiative will see locals donate good quality uniforms, schoolbags, pencil cases and school essentials to those in need. Items will be available for anyone to collect completely free of charge, no questions asked. 

Speaking ahead of the launch, The Leith Collective founder, Sara Thomson said; “Demand for our free school uniform exchange last year was high. Sadly, due to the ongoing cost of living crisis, there is an increasing number of families from all walks of life who are genuinely anxious about how they will kit out their kids again this year.

“So, we felt it was essential that we launch our free school uniform exchange as soon as possible – so that parents have at least one less thing to worry about throughout the school holidays.”

This summer’s free school uniform exchange follows The Leith Collective’s winter coat exchange which received an overwhelming response, with over 7,000 coats donated and collected by locals.  

People can donate and collect items at The Leith Collective in Ocean Terminal, Fort Kinnaird, and the St Enoch Centre during opening hours. No tights or socks can be accepted but all other good quality school items are welcome.

  • The Leith Collective at Ocean Terminal
    Ocean Drive, Edinburgh
    EH6 6JJ
    Opening hours: Monday – Saturday 11am – 6pm, and Sunday 11am – 5pm.
  • The Leith Collective at Fort Kinnaird
  • Newcraighall, Edinburgh
  • EH15 3RD
  • Opening hours: 10am – 8pm seven days a week
  • The Leith Collective at St Enoch Centre,
  • Glasgow G1 4BW
  • Opening hours: 10am – 5pm, seven days a week

Survey reveals the struggles families face this summer

National charity Family Action polled over 1,000 parents/carers to find out how this summer looks for families facing increasing financial pressures.

Over three quarters (76%) of parents/carers are worried about activity and entertainment costs for the summer holidays due to the rising cost of living.

A third (33%) of parents/carers surveyed will be going without a family holiday, and over a quarter (26%) will be going without days out for their family during or in preparation for this summer holiday, when compared to previous years.

Almost half (46%) of parents/carers surveyed think they will compare the school summer holiday they give their child/ren, this year, with what other parents around them give their children. The same figure feel more stressed and anxious about the school summer holidays this year than excited.

Over a third (36%) of parents/carers anticipate they will need to seek financial and/or emotional support to get through the school summer holidays this year.

Family Action’s free advice line FamilyLine is available 24/7 for families looking for support this summer

National charity Family Action polled over 1,000 parents/carers to find out how this summer looks for families facing increasing financial pressures.

Findings revealed that 76% of families are worried about the cost of days out, such as travel, entry fees and equipment costs, because of the cost of living crisis. In the run up to and during the school summer holidays, 26% of families will be going without days out completely, and 33% will be forgoing a family holiday this year, due to the rising cost of living.

Further findings from Family Action also highlighted an increase in mental health issues facing families this summer, with nearly half (46%) of parents/carers feeling more stressed and anxious about the school summer holidays, rather than excited.

The survey reveals that this year the school summer holidays are set to be a time when inequalities are amplified, with almost half (46%) of parents/carers surveyed set to compare the school summer holiday they give their child/ren, this year, with what other parents around them give their children.

David Holmes CBE, CEO at Family Action said: “Every family wants to make happy memories during the school holidays but, for many, this summer will be more difficult than ever. From juggling childcare to coping with the cost-of-living crisis and searching for affordable ways to have fun, the pressures can really build up.

“At Family Action we are here to help to make the summer a memorable one for the families we work with, and our services will be providing a range of ideas for simple and often free activities that all families can participate in. As our survey shows, 80% of parents/carers agree that making happy memories with their children can be free, so providing free or low cost activities is a great way to take some of the pressure off families this summer.”

Family Action runs over 170 services across the UK and this summer they will be coming together to make happy memories for the families they support, and providing the financial, practical or the emotional support needed to reduce shame and reassure families that making happy memories doesn’t have to cost a lot.

Family Action Service Manager, Leanne Best, said: “The families, volunteers, staff and colleagues we work alongside share with us that there is an expectation that summer school holidays should be a really happy time, where we spend lots of quality time together as families, doing fun activities, going on summer holidays and making special memories, but it is sadly not the reality for most this year.

“Many families are worrying that due to the cost of living crisis they will have to find more money for the basics, such as food, bills, childcare and school uniform. This means that they aren’t going to be able to afford holidays, days out, or activities which can result in stressful households and can leave people feeling guilty about ‘not being good enough’ or ‘not doing enough’ for their families.

Sanna uses our service and said: “I’m worried about trying to save up for 6 weeks because it will be quite a struggle financially because obviously the gas and electricity bill increased twice and the support we were getting from the government has stopped and has taken a chunk off the family budget, so I am worried about how I am going to keep the children entertained through the holidays.

“Family Action trips are the only time I’ll go out on a trip, as I don’t have the budget to take my kids out. Even if you go on a train its expensive and then you worry about the entry tickets. I do all the free things I can do with my kids I go to the park, for picnics, take them for a walk, but if you think about taking them somewhere where you need transport, entry tickets and food it can come to easily £100!

“When you do it by yourself you have all these worries, all these stresses, and all these anxieties, but when everything is provided, like the Family Action trips, all you need to do it sit, relax and make beautiful memories with your children.”

Leanne Best adds: “We have listened to these worries and in response, we will be enhancing the support we already offer to children, young people and families in Stockton, with the addition of our Summer Action Packs.

“Summer Action Packs will contain a variety of summer essentials, activities, tips & ideas, vouchers and information – which will hopefully enable families to worry a little less and have more resources and affordable opportunities, which will help them to enjoy some special family times over the Summer.”

David Holmes concludes: “At Family Action we believe that all children and families have the right to thrive. Together we can overcome the summer struggle and make it one to remember for all the right reasons.

“We know that families agree that the best memories don’t have to be expensive to make, but we also see the stress families feel under to provide the best possible summer holidays for their children, and we can help.

“Our services provide a lifeline to families with direct, practical, emotional and, where we can, financial support, all year long and our free adviceline FamilyLine is there for families across the UK, to provide advice and support.”

If you know someone who needs support, they can contact FamilyLine on 0808 802 6666, text 07537 404 282, email familyline@family-action.org.uk or visit  Family Action .

Chancellor agrees action plan with regulators to support consumers

As part of the government’s plan to halve inflation this year, the Chancellor chaired a roundtable with CEOs from the Competition and Market Authority (CMA), Financial Conduct Authority (FCA), Ofcom, Ofgem and Ofwat.

Jeremy Hunt made clear his expectation that regulators work at pace to guarantee markets are working properly. With wholesale energy prices and other input costs now beginning to fall – the Chancellor also wants to ensure consumers benefit from these reduced costs.

During this current period of high inflation and interest rates, this also includes ensuring higher interest rates are passed on to savers.

Chancellor of the Exchequer Jeremy Hunt said: “I am pleased we’ve secured agreement with the regulators to act urgently in areas where consumers need most support to ensure they are treated fairly.

“We are working hard to halve inflation this year and return to the 2 percent target. Businesses must play their part too and I will keep a watchful eye on the progress they make.”

The Chancellor also agreed a new action plan with the regulators to support consumers, particularly the most vulnerable:

FCA have agreed to:

  • Deliver better deals for savers by driving competition, including reporting by the end of July on how the savings market is supporting savers to benefit from higher interest rates. The Government fully supports the FCA’s review and the new Consumer Duty gives them stronger powers to take action if necessary.
  • Require the largest banks and building societies as part of this to explain the pace and extent of their pass through of interest rates, and how they are proactively supporting savers to switch to high interest rate products.

CMA have agreed to:

  • Deliver a better deal for motorists by publishing their review of the road fuel market, which examines profit margins in supermarkets and other fuel retailers, on Monday. This will include the impacts on vulnerable consumers.
  • Help shoppers pay fair prices by bringing forward their update of competition and unit pricing in the grocery sector to earlier in July and laying out next steps. This will include further scrutinising the food supply chain as well as measures to make it easier for consumers to make the best choices.
  • Following affordability pressures in the housing market, provide an update on their housebuilding market study and work in the rented accommodation sector in August.
  • Actively scrutinise markets where cost-of-living pressures are growing and launch work in at least two new areas the CMA considers in need of further investigation. It will also update on key developments in its ongoing crackdown on misleading consumer practices.

Ofcom have agreed to:

  • Take action to push suppliers who have yet to introduce social tariffs (discount deals for vulnerable customers) to offer them in the broadband and mobile markets, as well as waive fees for any customers who want to switch providers to access a social tariff.
  • Push suppliers to take immediate steps to raise awareness of existing social tariffs and drive consumer take-up. Ofcom will work with government and other relevant bodies to support industry efforts.
  • Publish a report on its current review of in-contract prices to ensure consumers are sufficiently aware of what they are signing up to by the end of the year. This will consider whether Ofcom’s rules need to be strengthened. Ofcom will also publish an update on its full range of work to support consumers in July.

Ofwat have agreed to:

  • Crack down on water companies not going far enough to support customers to pay their bills, access help and repay debts. This will include assessing water company compliance with Ofwat’s Paying Fair Guidelines, and where companies’ approaches are found to be insufficient, setting out clear actions for improvement in July. Next year, Ofwat will also set out clear and binding license conditions for every water company on how to treat their customers, including customers in vulnerable circumstances.
  • Hold water companies to account over delivering existing social tariffs for those unable to pay water bills, as well as allowing consumers to apply for payment holidays and offering support to those on low-incomes.
  • Ensure targeted support for vulnerable customers by improving data sharing, such as those struggling with bills (along with Ofgem).

Ofgem have agreed to:

  • Ensure all suppliers are passing falling prices onto consumers, keeping the price cap formula under review to ensure that it mirrors the costs facing suppliers. The new lower cap from 1 July will reduce a typical annual household energy bill by £426.
  • Strengthen protections and support for the vulnerable by mandating the Code of Practice on prepayment meters and ensuring that suppliers are able to offer Additional Support Credit (ASC) to PPM customers in need. Both are subject to Ofgem consultations launched today.
  • Take action against suppliers that have over-charged business customers and publish its review of the non-domestic market this Summer.
  • Scrutinise supplier finances as the sector begins to move from loss making back into profit. The regulator and government moved quickly to stem losses and protect consumers when prices were rising sharply and expects suppliers to act responsibly and in the interests of their customers as prices fall and profits return. This includes ensuring they deliver good service standards and support the most vulnerable customers. Those who are not yet meeting new capital requirements should retain profits rather than pay out dividends.

Regulators agreed to provide regular updates to the Treasury on their progress and that a follow up meeting would be held later this Summer. The FCA, Ofcom, Ofwat and Ofgem will also publish a joint statement to set shared expectations on treatment of customers in financial difficulties.

As part of wider discussions with the Governor in the context of high food inflation, the Bank of England is reviewing CMA data and meeting with the food sector, with analysis included in the August Monetary Policy Report and/or the minutes of the August meeting.

The meeting with regulators on what more they can do to support people through a period of high inflation comes while the government continues with its plan to halve inflation this year and support the Bank of England in taking difficult decisions to return to the 2 per cent target.

Commitments from regulators to make sure consumers are not being exploited build on one of the largest cost-of-living support packages in Europe which has been rolled out to help the most vulnerable, worth £3,300 per household on average over this year and last.

This includes paying half of a typical household energy, direct cost of living payments to the most vulnerable and increases to benefits, state pensions and the National Living Wage of around 10 per cent.

The CEOs attending were:

  • Ofcom (telecommunications) – Dame Melanie Dawes
  • Ofgem (energy) – Jonathan Brearley
  • Ofwat (water) – David Black
  • Competition and Market Authority (CMA) (competition/consumer) – Sarah Cardell
  • Financial Conduct Authority (FCA) (financial services) – Nikhil Rathi.

New report finds high utility, food and broadband costs are squeezing older people’s budgets across Scotland

High costs across the board, from utilities and food to accessing the internet, are causing misery for thousands of older people across Scotland, warns national charity Independent Age.

Laid bare in their new report – The Hidden Two Million – is the profound impact high costs are having on those in later life living on the lowest income across the UK. In Scotland, over half (56%) of those polled on a low income (less than £15,000 per year) say they are worried about the cost of electricity. When asked about heating, still over half (54%) were concerned about the utility’s affordability.

Food inflation has been at record highs the past year, and this has also had a harmful impact on those on the lower end of the income spectrum. Polling by Independent Age shows that a staggeringly high 45% of older people living on £15,000 per year or less are cutting back on their food spending and well over a third (42%) of the same group are concerned about covering their food bills for the next 6 months.

Across the UK, 20% of single pensioners, and 7% of couple pensioners have no other source of income outside the State Pension and other benefits. Older people in financial hardship have shared with Independent Age that managing on a fixed income means, when faced with increased bills, the only options they feel they have to choose from, are to cut back – which could harm physical and mental health – or go into debt.

It’s not just big bills that are squeezing older people’s finances. Smaller but important bills, such as phone and broadband, are also causing money worries.

New polling commissioned by Independent Age shows that 39% of older people with an income of less than £15,000 per year, are already cutting back on their phone usage to save money while 35% of the same group are fearful of not being able to afford their broadband bill during the next 6 months.

This is concerning as not being digitally connected can lead to social isolation and limits access to better deals only found online.

Recommendations

Independent Age is urging both the government and private sector to do the following in support of older people in financial hardship:

  • Utility companies must provide and promote financial support to everyone on low incomes, including older people
  • The UK Government should introduce national social tariffs across utilities such as energy
  • The UK and Scottish Governments must ensure that everyone in financial hardship in later life receives the financial support they are entitled to

June, 67, Glasgow, is currently struggling financially. She said: “Now I know exactly what’s getting paid with my pension, I know what’s coming in.

“I’m very cautious with money. I’m careful to make sure I’ve got enough to get me my food. You’ve got to be careful because you can still run out at the end of the month, not got any money, know what I mean, then you end up going to the food bank.

“If something big was to come up that was needed, say my fridge, God forbid, or my cooker or washing machine, it would be a worry. I would have to get help. I can’t go out and buy big things.

“I cannot go for a cup of tea or buy a wee meal for my friends, it’s irritating because you want to do more. But I’m restricted, I’ve not got the finance for that. So you just forget it. I live a quiet life.”

Debbie Horne, Scotland Public and Policy Affairs Manager at Independent Age said: “These new figures are a stark reminder of just how frightening turbulent economic times can be for those on the lowest incomes.

“Thousands of people in later life across Scotland are being financially squeezed in every direction, this can be damaging to people’s mental and physical health.

“We hope that all utility companies will review their support for their most vulnerable customers, including older people, and ensure they are protected from future spikes in costs.

The hidden two million. The reality of financial hardship in later life

Independent Age launched its powerful report at an event last week to raise awareness of its renewed focus to support the more than 2 million older people across the UK living in financial hardship (including the 150,000 in poverty in Scotland), and those hovering above the line in a financially precarious situation.

The new research provides the latest insights into poverty in later life.

The event also saw the premier of the charity’s new thought provoking film that amplifies the voices of older people currently living in financial hardship.

Here is the link to the film:

https://www.youtube.com/watch?v=Roq07aRNZi4&ab_channel=IndependentAge

IACP026_launch_report_embargoedDownload

Embarrassment stops Scots from seeking financial help

  • Nearly 4 in 10 say they wouldn’t ask for financial help if they were in trouble due to embarrassment
  • 81% say they feel anxious about their financial situation
  • 44% say they feel more worried about their financial situation now, compared to a year ago

New research has revealed that those in Scotland are the most at risk of financial turmoil due to embarrassment about their financial situation.

The findings, which were part of a UK-wide study by financial comparison website, NerdWallet UK, found that those in Scotland – alongside those in the South West – are the most likely to not seek help should they find themselves in financial difficulty due to the embarrassment around the topic.

Almost two-fifths of those surveyed said that embarrassment would stop them from seeking help, while just under one-third would be concerned about the impact doing so would have on their credit history, as well as worries around confidentiality. The same number also believe they can manage on their own and do not need external help.

Other reasons which would stop Scots from getting help include, the cost of getting financial advice (29%), and worryingly, just over a quarter said they were not aware of any organisations to help them with debt, or how to contact them.

If I was struggling financially, the following would stop me from asking for help – Scotland:

ReasonPercentage who agreed
I would feel embarrassed37%
I’m worried about the impact on my credit history31%
I’m worried about confidentiality31%
I think I can manage on my own31%
I don’t want to pay for advice29%
I don’t think my financial situation is serious enough28%
I’m not aware of the debt help organisations or how to contact them26%
I don’t want to speak about my problems on the phone23%

This is despite 81% of Scots saying they feel anxious about their financial situation, and 25% saying these feelings are daily occurrences.

Furthermore, 44% of respondents in Scotland say they feel more worried about their financial situation now, than they did a year ago.

When asked who they would go to or help first, almost half (48%) said they would speak to their partner or close family member, while 12% said they would speak to a friend.

Adam French, senior editor at NerdWallet UK, said, “It’s worrying that so many Scots would not get help due to embarrassment. Struggling financially is never something to be embarrassed about, and if the cost of living crisis has taught us anything over the last 18 months, it’s that financial trouble can happen to any of us, at any time.

“Getting help when you first find yourself in financial difficulty, and not burying your head in the sand can help to relieve a lot of stress and anxiety around money, and find a way out before things get worse.

“There are plenty of independent experts and companies available to speak to, for free, including Granton Information Centre, the Citizen’s Advice Bureau and Step Change. Everything is confidential, and discussing concerns will not impact your credit score.”

For information on NerdWallet, and to view the full dataset, visit: 

https://www.nerdwallet.com/uk/personal-finance/money-and-mental-health-study/

Boyack: Redeem unclaimed energy vouchers before it’s too late

Following concerns raised by the advocacy group Energy Action Scotland over the number of households with pre-payment meters who have not claimed their voucher entitlement from the UK Energy Bill Support Scheme that ended in March 2023, Scottish Labour MSP Sarah Boyack is urging people in Edinburgh to redeem their vouchers before they expire on 30th June 2023.

In Edinburgh, 34 per cent of vouchers have yet to be claimed, with the approximate value of the unclaimed support in Edinburgh being at  around £1,374,120.

Households with non-smart (traditional) prepayment meter need to actively redeem the vouchers that have been sent by post, text or email.

Once the voucher from the energy supplier is received,  people will need to take it to a Post Office or PayPoint shop to add it to the gas or electricity top-up key or card.

Commenting Sarah Boyack MSP said: “If you live in a household with older, non-digital pre-payment meters, you have been issued with vouchers by post, text or email to support you with the rising energy costs.

“These vouchers are valid for 90 days and expired or lost vouchers can be re-issued through the energy supplier.

“However, all vouchers expire on 30th June when the scheme ends.

“If you are entitled to energy vouchers, now is time to redeem them. They may not resolve the cost of living crisis, but during these hard time, we need all support we can get.”

Scottish Government: ‘Cash-first’ approach to tackling food insecurity

New plan will strengthen access to cash in a crisis

A commitment to a ‘cash-first’ approach to tackling food insecurity is at the heart of a new plan to reduce the need for people to turn to food banks.

The plan, which is the first of its kind in the UK and is underpinned by human rights, sets out nine actions which will be taken over the next three years to improve responses to food insecurity.

Actions include establishing a new £1.8 million Cash-First Programme to help reduce the demand for emergency food parcels by improving urgent access to cash in crisis and associated support.

The Scottish Government will work with councils, the third sector and community food initiatives to help prevent future need by integrating money advice and wider support into crisis responses.

Social Justice Secretary Shirley-Anne Somerville said: “Whilst none of us want food banks, we recognise the important role they play for people in need. This plan, the first of its kind by any UK Government, will support people who face food insecurity and will move us closer to our longer-term ambition of a country where there is no need for food banks.

“We want to ensure we reach people in need and by providing a cash-first approach, backed by advice and support, we will support people to strengthen their incomes and prevent future hardship and crisis, allowing them more choice and dignity.

“Tackling poverty and protecting people from harm is one of the Scottish Government’s three critical missions. The Trussell Trust suggests that our Scottish Child Payment may have helped to slow the pace of demand for emergency food parcels last year.

“Without the full economic and fiscal powers of an independent nation we can’t eradicate poverty, but we are taking all the action we can to support people within our limited powers and fixed budget.”

The plan also includes up to £623,000 funding for the British Red Cross to continue a Scottish Crisis Fund, which provides people at risk of destitution – including survivors of domestic abuse, and those no recourse to public funds – with emergency grants to purchase the food and other essentials.

Phil Arnold, Head of Refugee Support for Scotland, Wales and Northern Ireland, British Red Cross said: “The Scottish Crisis Fund is a lifeline emergency payment for people in crisis.

“The fund enables people to continue accessing essential food, clothing, hygiene products and transport to get to key appointments, at an acute period of distress in their lives.

“The increased cost of living, widening dispersal of people seeking asylum to areas without specialist support, and reduced rights for people seeking protection in the UK, all underline the importance of a joined-up, properly resourced safety net which this fund plays an important role in providing.”

Polly Jones, head of Scotland for the Trussell Trust said: “We welcome this first plan to end the need for food banks from any government in the UK, and it comes at a time when the use of food banks is at an all-time high. Ending the need for charitable food aid requires significant leadership and urgency from all levels of government.

“The Trussell Trust is committed to working with the Scottish Government to support it to do what charities cannot and deliver bold long-term action to increase people’s income and ensure everyone can afford the essentials.”

Sabine Goodwin, Coordinator of the Independent Food Aid Network, said: “The Scottish Government has powers to reduce food insecurity and adopt a truly cash-first, income-focused strategy to end the need for charitable food aid in Scotland.

“As the poverty crisis deepens, frontline teams across Scotland are eager to see a time when no one needs to turn to any form of charitable food aid provision to get by. We welcome this plan and the Scottish Government’s commitment to critical steps towards that cash-first future.”

Cash-First: Towards ending the need for food banks in Scotland

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