Scottish Parliament debates committee report on commissioners
Over seven in ten (74%) older people (over 65) in Scotland feel their issues are not understood by the Scottish Government.
Charity Independent Age calls for greater focus on the issues affecting older people in Scotland and the creation of an Older People’s Commissioner.
Polling revealed as Scottish Parliament set to debate Finance and Public Accounts Committee report that proposes a pause on new commissioners in Scotland.
Independent Age, the national charity supporting pensioners in poverty is calling on the Scottish Parliament to ‘carefully and urgently’ consider how it will ensure older people on a low income will be protected, have their voices heard and their rights upheld.
As the Scottish Parliament is set to debate a report from the Finance and Public Accounts Committee into the commissioner landscape in Scotland, new polling commissioned by the charity shows that 74% of pensioners in Scotland feel their issues are not understood by the Scottish Government.1
The report calls for a moratorium – a pause – on any new commissioners in Scotland until a review can be carried out2 , which the charity says risks continuing to leave older people without an independent champion in these times of rising energy costs, the onset of winter, and recent changes to the eligibility for Winter Fuel Payments.
Support for an Older People’s Commissioner is wide-spread. In May last year, over 30 organisations working with and supporting older people across Scotland called for an OPC.3 The MSP Colin Smyth introduced a Private Member’s Bill calling for the creation of the position which recently secured the cross-party support required to be formally introduced to Parliament.
The charity says this has never been more urgent as the number of pensioners in poverty – 150,000 – is up in number by 25% since 2012 and has remained stubbornly high in recent years. 4
Debbie Horne, Scotland Policy and Public Affairs Manager at Independent Age, said: “It’s hard to overstate the devastating impact that deepening poverty is having on older people across Scotland.
“In a socially-just society, no one should live in poverty. It is also incredibly worrying that the majority of older people feel their issues are not understood by the Scottish Government.
“While we welcome the robust efforts of many MSPs to support their older constituents and represent their views in Parliament, polling shows that more needs to be done. Careful and urgent action is required to support the many pensioner households suffering the impacts of poverty.
“We firmly believe the only way to tackle pensioner poverty in Scotland is through a strategic approach. A key part of this being the introduction of an independent Older People’s Commissioner. Without such a champion we worry that older people’s issues will continue to fall between the gaps.”
Statistics published today by the DWP, reveal that just 65% of older people who are entitled to Pension Credit were receiving the payment between April 2022 and March 2023.
Independent Age estimate that in Scotland this means that up to 70,000 older households could be missing out on the Pension Credit they are entitled to, with a combined value of £140 million.
We know there has been an increase in applications since the UK Government announcement that the Winter Fuel Payment would be means tested, but it is unclear how many of these will result in successful claims.
Both Governments must work together to address the issue of low take-up of Pension Credit and the unacceptably high levels of poverty in later life. Independent Age is urging the UK Government to review and ensure overall adequacy of the social security system for older people, to prevent pensioner poverty.
Alongside calling on the Scottish Government to introduce a pensioner poverty strategy for Scotland – setting out the actions that can be taken alongside with local authorities, to tackle poverty in Scotland.
Debbie Horne, Scotland Policy and Public Affairs Manager at Independent Age, said:“What is clear from the figures released today is that too many older people living on a low income are still missing out on Pension Credit in Scotland, and across the UK.
“There has been a disappointing lack of progress on Pension Credit take-up. We estimate that up to 70,000 older households could be missing out on Pension Credit between April 2022 and March 2023 worth a combined £140 million.
“Independent Age is urging the UK Government to maintain the Winter Fuel Payment in its current form until significant action can be taken to substantially increase Pension Credit take-up.
Previous strategies have not moved the dial, we can’t have more of the same. We need an innovative, evidence-based, long-term take-up strategy that maps out how older people living in, or on the edge of, poverty can access the financial support they are entitled to.
“It is too early to say what the impact of the recent increase in claims for Pension Credit will have on overall take-up rates. However, there is no room for complacency when an estimated 70,000 older households in Scotland are missing out on this much needed money and 150,000 live in poverty. In a socially just and compassionate society, we can and should do more.”
With the days feeling shorter, our thoughts are turning to the winter ahead and people up and down the country will be thinking about switching their heating on soon. But now, many older people, including millions living on a low income, will head into the colder months justifiably anxious about having their Winter Fuel Payment taken away from them as they do not receive Pension Credit.
The latest figures show that only 63% of eligible people are receiving Pension Credit, meaning up to 1.2 million older people could be missing out on an important entitlement, and so could have their Winter Fuel Payment taken away despite living on an extremely low income. In Edinburgh a massive £12.5 million in Pension Credit is going unclaimed.
Our helpline is regularly receiving calls from older people that are frightened about losing the money, and we are concerned that many will feel forced to keep their heating off. Being cold can be damaging to your physical and mental health, but the people we speak to think this is their only option as they simply do not have enough money to cover even higher energy bills.
If you are 66 and over and are concerned about losing the Winter Fuel Payment, we urge you to check your Pension Credit eligibility as the one-off payment is now tied to this entitlement.
Your claim for Pension Credit can be backdated, and if you successfully apply before the 21st December you will qualify for the Winter Fuel Payment as long as you lived in the UK during the qualifying week which is between 16th and 22nd September 2024, and you can show you were entitled to Pension Credit during that time.
You can check your eligibility through the UK Government’s Pension Credit Calculator and apply direct by calling this number 0800 99 1234. Or you can come to a charity like us at Independent Age by calling our free and confidential helpline on 0800 319 6789 and we can help work out what you might be eligible for and help you apply if needed.
Pension Credit can be transformative, it tops up income by on average, almost £4,000 a year. It also acts as a gateway to other benefits such as free TV licences for over 75s, free NHS prescriptions, council tax reduction, Housing Benefit, free eye tests and much more.
In response to the House of Commons voting in favour of cutting the Winter Fuel Payment, Independent Age Chief Executive Joanna Elson, CBE said: “People in later life living in financial hardship will be rightly concerned that, despite mounting public pressure about the impact on older people on the lowest incomes, the UK Government will continue with its plans to means test the Winter Fuel Payment from this year. It’s clear that making this decision now means many people in later life struggling in poverty will be forced to make dangerous cutbacks.
“The Chancellor still has time to reassess. Even with today’s vote, the UK Government can show it is listening to the concerns of older people in poverty, and delay this policy change until more older people start receiving Pension Credit.
“Boosting take-up is complex and will take time, the latest take-up figures show that up to 1.2 million older people could be missing out on this financial entitlement. They will already be living on a low income as they are eligible for Pension Credit, but now they will have even less money to live on this winter.
“We are also concerned about the large group of older people that just miss out on Pension Credit. Many of them are in financial hardship and do not have enough money to live well, but will still have their income cut at an already challenging time of year with energy prices on the rise.
“In the short term we hope the UK Government listens to the evidence being shared, and doesn’t means-test the Winter Fuel Payment now.
“Long-term there must be financial security for all of us as we age.
“We urge the UK Government to lead a review where all major parties come together and agree on what an adequate income in older age is, then ensure that everybody receives it so that no one lives in poverty in later life.”
Caroline Abrahams CBE, Charity Director at Age UK said: “We’re deeply disappointed, but not surprised, that the vote to brutally means-test Winter Fuel Payment was passed today.
“As soon as the Government announced it was instructing its MPs to support it this was the inevitable result, but we would like to thank all those in every party who voted against the policy or abstained.
“There’s been a lot of discussion about the Government’s decision, but at heart Age UK’s critique of their policy is really simple: we just don’t think it’s fair to remove the payment from the 2.5 million pensioners on low incomes who badly need it, and to do it so quickly this winter, at the same time as energy bills are rising by 10%.
“It is crystal clear that there is insufficient time to make any serious impact on the miserably low take-up of Pension Credit before the cold sets in this autumn, and the Government has brought forward no effective measures to support all those whose tiny occupational pensions take them just above the line to claim.
“It’s true they have agreed to extend the Household Support Fund until April and they deserve some credit for that, but the HSF is an all-age fund that you have to apply for, so we know it will only help a small proportion of all the pensioners who will be in need as a result of their policy change.
“The Government has also tried to suggest that the increase in State Pension for older people next year as a result of the Triple Lock means there’s no need to worry about how they will cope now, but that won’t help anyone this winter and most pensioners will not benefit to the extent being suggested – either because they are on the old State Pension which attracts less of an increase, or because they don’t qualify for a full State Pension in the first place.
“The reality is that driving through this policy as the Government is doing will make millions of poor pensioners poorer still and we are baffled as to why some Ministers are asserting that this is the right thing to do.
“We and many others are certain that it is not, and that’s why we will continue to stand with the pensioners who can’t afford to lose their payment and campaign for them to be given more Government support.
“Meanwhile, winter is coming and we fear it will be a deeply challenging one for millions of older people who have previously relied on their Winter Fuel Payment to help pay their energy bills and who have no obvious alternative source of funds on which to draw.
“As a charity we will do everything we can to help them, but with so many in need and no extra support on offer from the Government at the moment it’s looking like an incredibly uphill task.”
ALL Scottish Labour MPs voted with the government, butRebecca Long Bailey was one of more than fifty Labour MPs who refused to vote in favour of the cut. She explained why:
Former Labour Party leader and now independent MP Jeremy Corbyn also voted against the withdrwal of the payment. He said: “I voted against cuts to winter fuel payments. Politics is about choices, and the government has chosen to push pensioners into poverty.
What’s next for means testing? The NHS?
“I will always defend the principle of universalism. That is how we build a fairer society for all.”
A major change to this year’s Winter Fuel Payment means that to get the allowance that’s worth up to £300, you must also receive Pension Credit.If you don’t currently get Pension Credit, but think you could be eligible, it’s vital to check now and apply, otherwise you could miss out.
The allowance is now linked to certain means-tested benefits including Pension Credit. Pension Credit helps those over State Pension age who are living on a low income. It works by topping up income to a minimum level and can be worth more than £3,900 a year.
To keep getting your Winter Fuel Payment you must be eligible for Pension Credit or one of the other following benefits during the ‘qualifying week’ of 16 to 22 September 2024:
Universal Credit
income-related Employment and Support Allowance (ESA)
income-based Jobseeker’s Allowance (JSA)
Income Support
Our Benefits calculator will show you if you’re entitled to any of these benefits
In Scotland the Winter Fuel Payment will be replaced by the Pension Age Winter Heating Payment, worth up to £300.
This will also be linked to Pension Credit and certain means-tested benefits.
It’s the Pension Credit Week of Action and Work and Pensions Secretary Liz Kendall recommends checking if you, a loved one or a friend could be eligible for Pension Credit.
For someone aged 66 or over it could entitle them to the Winter Fuel Payment and other benefits: https://ow.ly/NRPh50Tcu6m
Speaking after the King’s Speech, Scottish Secretary Ian Murray said: “This is a King’s Speech which will deliver the change our country needs. It will deliver for all four nations of the UK and all four corners of Scotland.
“We have a bold and ambitious legislative programme which will ensure we deliver on our mandate.
“Our plans will deliver growth and jobs for our economy. It will establish GB Energy, a publicly owned energy generation company which will create jobs and cut bills for good, and establish a National Wealth Fund to invest in the industries and jobs of the future.
“The King’s Speech also delivers the biggest transfer of power towards working people in a generation, with new rights on sick pay and redundancy, and better pay. It will ban exploitative zero hour contracts and increase the minimum wage to a real living wage. A better deal for working people, with less insecurity and more money in their pockets, is the first step towards reducing poverty in Scotland and across the UK.
“We have been clear that we want to reset our relationship with the Scottish Government, and to work together to deliver better outcomes for people.
“Our rail ownership bill will ensure that ScotRail is kept in public hands, and we want to work with the Scottish Government to pass laws that will reduce the availability of addictive vapes to young people.
“We promised change. This King’s speech demonstrates we are rolling up our sleeves and delivering that change.”
Bills which will apply in Scotland:
Renters Rights Bill [only in respect of discrimination against tenants on benefits or with children]
National Wealth Fund Bill
Pensions Schemes Bill
Planning and Infrastructure Bill [some measures]
Employment Rights Bill
Passenger Railway Services (Public Ownership) Bill
Railways Bill
Bank Resolution (Recapitalisation) Bill
Product Safety and Metrology Bill
Border Security, Asylum and Immigration Bill
Armed Forces Commissioner Bill
Digital Information and Smart Data Bill
Draft Audit Reform and Corporate Governance Bill
Great British Energy Bill
Sustainable Aviation Fuel (Revenue support Mechanism) Bill
Terrorism (Protection of Premises) Bill [Reintroduced]
Draft Equality (Race and Disability) Bill
Tobacco and Vapes Bill [Reintroduced]
House of Lords (Hereditary Peers) Bill
Cyber Security and Resilience Bill
Commonwealth Parliamentary Association and International Committee of the Red Cross (Status) Bill
Lords Spiritual (Women) Act 2015 (Extension) Bill
Budget Responsibility Bill
Hillsborough Law [Public Candour] Bill [TBC – territorial extent to be determined]
Scotland’s Deputy First Minister Kate Forbes has reiterated the Scottish Government’s intention to work collaboratively with the UK Government to deliver on shared ambitions for Scotland.
Ms Forbes commented on the King’s Speech: ““The Prime Minister has said he wants to reset the relationship with the Scottish Government, respect the devolution settlement and work constructively together.
“I am pleased to see this approach reflected in the King’s Speech, and we will support the opportunities it presents to improve the lives of people in Scotland.
“I look forward to early and meaningful engagement on UK Bills, including the New Deal for Working People. We have been clear in our opposition to the inappropriate use of zero hours contracts and other types of employment that offer workers minimal job or financial security.
“We also welcome the Tobacco and Vapes Bill being taken forward. This is an important step forward in public health, and a four-nations approach will offer more certainty for businesses and consistency for consumers.
“The priorities of the Scottish Government for the year ahead will be announced in the First Minister’s Programme for Government, when he will set out how we will deliver for communities right across the country.”
Commenting on the King’s Speech, STUC General Secretary Roz Foyer:“Pomp and pageantry aside, this is a more progressive programme for government than we’ve seen after 14 years of Tory mismanagement.
“The New Deal for Working People can be the start of a new chapter for workers. If enacted fully, the New Deal gives rights, security and respect to working people throughout the UK. It must now be delivered in full without delay. It is right this is accompanied by a new industrial strategy council.
“We look forward to working with the UK Government to ensure this body is representative and impactful, creating a minimum floor of working rights across every nation of the UK. It’s further welcome that the UK Government finally seeks to legislate further to end the scourge of race-based pay discrimination – working people of all nationalities deserve nothing less.
“This will, undoubtedly, be aided if the Labour Government sticks true to its pledge and seeks to revitalise the devolution settlement through the Council of the Nations and Regions.
As part of this, we must see further powers devolved to the Scottish Parliament, including powers over employment, migration and more.
The siting of GB Energy in Scotland is very positive. We hope it will become more than an inward investment tool and will develop a strategy for direct public ownership to deliver the infrastructure and supply chain jobs we so desperately need.
“The commitment to bring railways back into public ownership is a long-standing demand of trade unions who have fought against the carnage brought by privatisation.
“Economic growth is a welcome, central tenant of this government’s mission. But that cannot be done through the exploitation of working people. The Prime Minister has a job on his hands to restore standards and investment to public life and public services. With the Scottish Parliament elections just around the corner, we look forward to him delivering on his pledges for workers in Scotland.
Commenting on today’s King’s Speech Joanna Elson CBE, Chief Executive of Independent Agesaid: “Today’s King’s Speech outlined the UK Government’s focus on national renewal and it’s important that this renewal reaches the two million older people currently living in poverty across the UK.
“We are pleased to see the UK Government commit to improving private pensions for future older people who are able to save, including better access to small pension pots, but we also need action for the 150,000 pensioners currently living in poverty in Scotland. Ensuring people have enough money to live with dignity in later life is fundamental in a compassionate society and an essential part of social renewal.
“Right now, we need to see action to increase uptake of social security support for older people on a low income. Currently Pension Credit isn’t received by around a third of older people who should be getting it. In the longer term the UK Government should lead a cross-party review to establish what level of income is needed to avoid poverty in later life and ensure everyone is able to reach it. We are also calling on the UK Government to establish a consistent national social tariff for energy.
“The Scottish Government can also act to reduce poverty in later life, a key first step would be announcing a plan to reduce pensioner poverty in the Programme for Government – expected in September.
“Going forward, in both Westminster and Holyrood, it’s essential parliamentarians work towards the aim of making poverty in later life a thing of the past.”
More than 60 leading local government figures and influential academics came together today for the Saving Local Government Finance Summit to reflect on the legislative commitments in the King’s Speech and to deliberate on how the Government plans to carry out its promises for local government, including devolution and planning reform.
Despite optimism in the air, the consensus at the summit was clear: without significant reforms in funding, particularly for social care, local councils cannot maximise their role in delivering the government’s Five Missions. While not in the King’s Speech for immediate legislative attention, reforming local government funding was considered most pressing, particularly to stem the flow of bankruptcies.
Reflecting on the King’s Speech, Dr Jonathan Carr-West, Chief Executive, LGIU, said: “The Government’s early local government commitments are positive, and the sector welcomes multi-year funding settlements, the conclusion of competitive bid funding and a more collaborative approach from the new government.
“However, the elephant in the room is what’s not being said: local government funding reform. WIth half of all councils at risk of going bust in the next parliament, now is the time to provide sustainable funding and stem the flow of bankrupt boroughs.”
In reaction to the devolution commitments, Dr Carr-West, Chief Executive, LGIU, said: “The regions must have a say in how devolution is rolled out with bespoke solutions available: what works for Cumbria may not for Chingford.
“And while much attention has been on the role of metro mayors, especially with the introduction of the new council of nations and regions, it is essential that central government listens to other democratically elected local leaders.
“Underpinning any devolution roll-out is trust. Central government needs to trust its local counterpart to do its job. Devolution should also help councils win back the trust of the people they serve so that they can build consensus for difficult and contentious decisions that are increasingly necessary.”
On planning reform, Dr Carr-West said:“The briefings before today have pulled in different directions.
“On the one hand, there were those saying the government will liberate councils, by streamlining the planning process, empowering and working together with local leaders to build new homes where local communities want them.
“On the other hand, there were those who claimed the government aimed to bind councils to unachievable targets imposed by the centre.
“As it is, the details we have now are still limited and we’ll need to see – and contribute to – how the plans develop. There is a huge opportunity here to open up planning and expand local growth.”
Specifically on social care, Dr Carr-West said:“The funding of social care is a perennial thorn in the side for every government, central and local.
“This is an issue that demands a solution, and although there was no mention of legislative reform in the King’s Speech, the proposed Royal Commission leaves a vital opportunity to reconsider how social care is funded with local government, service providers, and service users as central to the consultation.”
Reacting to figures published today, Independent Age Chief Executive, Joanna Elson, CBE said: “Statistics released today are damning. Over 150,000 pensioners in Scotland are living in poverty with an extremely alarming increase in the number of pensioners living in severe poverty, up more than 30% compared to previous statistics.
“In a compassionate society, no one should have to experience the injustice of poverty and the impact this has on their daily life, health and wellbeing, including people in later life.
“With too many older people continuing to live in poverty and the number in severe poverty growing, it’s evident we need a step change in action from both the UK and Scottish Governments to reverse this alarming trend.
“The UK Government has key levers it can pull to change this. It’s vital there is action to make sure the amount people receive through the State Pension and Pension Credit is enough to live on.
“For this to happen, the UK Government must instigate a cross-party review to establish the adequate minimum level of income needed to avoid poverty in later life, alongside robust plans to get the existing financial support available to every older person.
“The Scottish Government also has a responsibility to recognise the scale of this issue and should respond to these alarming figures by urgently introducing a pensioner poverty strategy. While we have a child poverty strategy, we are unaware of any plans to produce a strategy to reduce poverty in later life.
“As today’s figures show, without a concerted effort from Government, too many older people are being left to suffer in poverty.The time for action is now.“
Charity warns rising rents and pensioner poverty could be ‘catastrophic’ for older Scottish renters
1 in 7 pensioners in Scotland (150,000) are in poverty, and over half (75,448) of those are renters
New research finds that just 30% of older renters feel fully informed of their housing rights
Older private renters in Scotland are plagued with damp, unsafe and unaffordable homes
Charity calls for the Scottish Government to ensure affordable rents, that tenants’ rights are upheld and rented homes are maintained to a decent living standard
Older Scottish renters living on a low income urgently need greater protections in the upcoming Housing Bill, says Independent Age, the charity supporting older people in poverty.
It says that renters in later life face a “catastrophe” if action is not taken, with record rent increases in recent years and a growing number of older renters across the nation being pushed into poverty.
The organisation today launches its report Homing in: How to improve the lives of older Scottish renters, which uses polling, Government data and a survey of over 500 older renters to understand the reality of renting in later life in Scotland.
Almost two in five (39%) older Scottish private renters now live in poverty, up from 24% a decade before1. Independent Age says that older renters on a low income are “terrified” their rent could rise after the end of the current rent rise cap on March 31st.
The new report has unearthed older tenants’ daily challenges with affordability, the threat of eviction and poor standards. The charity found that less than a third of older renters (30%) feel fully informed of their housing rights while a shocking one in five (21%) saying they know nothing2.Independent Age believes that this worryingly low level of awareness among tenants of their rights in the private rental sector is leaving poor and sometimes unlawful practice unchallenged.
The charity calls on the Scottish Government to ensure:
Private rents are controlled at an affordable level for older people on a low income.
Landlords are required to inform tenants of independent housing advice services when they serve them notice.
A housing ombudsman is established, giving private tenants the ability to challenge issues like poor maintenance.
Tenants are informed of their rights as renters.
Affordability
In Scotland, almost two in five (39%) older private renters live in poverty3, while more than a quarter (28%) of those surveyed say they have less than £200 disposable income a month after paying rent. In the last year, over 4 in 5 (81%) say they have faced a rise in rent of up to £50 a month.
With the temporary limit to rent increases set to end next month, the charity has heard from older people who, faced with increasing costs from all angles, including rent, Council Tax and energy, are struggling to pay their rent.
An older person who is looking for a new property to rent told the charity: “it is really scary how much starting rents have increased in the last six months”.
Independent Age warned that without action to ensure housing affordability in the private rented sector, more older tenants across Scotland will be forced to make difficult decisions such as making further cutbacks to food, energy and water to cover rent.
Housing quality and standards
65% of older Scottish peoples’ homes are in a state of disrepair4. Independent Age’s survey found that 40% of older private renters were not satisfied with the standard or quality of their home5, however polling found that more than 1 in 10 (12%) older private renters questioned feel uncomfortable raising concerns with their landlord, for fear of negative treatment.
Independent Age says that problems with damp, heating and energy efficiency come up frequently for older renters. One older person said that their house was “never warm… there is a smell of damp in the winter months. There is a huge opening in the back wall where the boiler is located. The wind whistles into the flat.” Another said that their home was cold “even in the summer.”
The charity said that not only are some of the conditions described by interviewees likely in violation of the Repair Standard that sets out a minimum standard that rental properties must meet, but tenants are scared to ask for necessary and reasonable repairs in case they are served with a ‘revenge eviction’. One man said: “I know if I complain to my landlord, it will get me nowhere but homeless.”
Evictions and homelessness
The report reveals that almost one in six (17%) older private renters are worried that their landlord will evict them in the next 12 months.
Almost three in five (59%) say that searching for a new home would be difficult6, likely due to older people sometimes needing special adaptations, such as a ground floor flat, and the growing unaffordability of rents.
Terrifyingly, there has been a 23% rise in the number of older people experiencing homelessness in the last year, up from 891 people in 2021/22 to 1100 in 2022/23.
Joanna Elson CBE, Chief Executive of Independent Agesaid: “For all of us, an affordable, safe and secure home is essential for our wellbeing and should be the norm. That’s why it is a catastrophe that, for many Scottish older renters on a low income, this is far from the reality.
“The Scottish Government made positive moves in recent years to protect tenants. But with many of these protections from eviction and rent increases coming to an end soon, we’ve spoken to many people renting in later life who are absolutely terrified about what will happen over the coming months.
“The Housing Bill is a once in a generation opportunity for the Scottish Government to make sure everyone has a home that is affordable, kept to a decent standard and free from the threat of eviction and homelessness.
“We hope they take action to ensure that all Scottish renters can live with dignity, no matter their age.”
Recommendations
Independent Age is calling for the Scottish Government to:
Establish a housing ombudsman to give tenants the power to challenge their landlords on poor maintenance and ensure that housing advice and advocacy services are accessible and properly funded so renters are aware of their rights.
Introduce a permanent system of rent controls so homes are affordable for older people on a low income, commit to building more social housing and increase access to, and funding of, Discretionary Housing Payments that support those on Housing Benefit who have a rent shortfall.
Ensure tenants, including those in later life on a low income, are informed of their rights.
Enshrine the right to adequate housing in Scots Law
Place a duty on local authorities to help someone threatened with homelessness in the next six months and require landlords to inform tenants of independent advice services before or when they serve them an eviction notice.
Independent Age is also calling on the UK Government to commit to uprating Local Housing Allowance every year so that Housing Benefit matches rises in local rents.
A £6.3 billion investment in social security and more than £19.5 billion for health and social care form the heart of the Scottish Budget for next year, alongside record funding for local authorities and frontline police and fire services.
With targeted funding to invest in public services and protect the most vulnerable, the Budget underpins the social contract with the people of Scotland, Deputy First Minister and Finance Secretary Shona Robison told Parliament. She also outlined policies to grow the economy and progress the commitment to deliver a just transition to net zero.
Difficult decisions have been required to prioritise funding for the services people rely on in the face of a deeply challenging financial situation, Ms Robison added.
The 2024-25 Scottish Budget includes:
£6.3 billion for social security benefits, which will all be increased in line with inflation. This is £1.1 billion more than the funding received from the UK Government for devolved benefits in 2024-25
£13.2 billion for frontline NHS boards, with additional investment of more than half a billion – an uplift of over 4%
record funding of more than £14 billion for local government, including £144 million to enable local authorities to freeze Council Tax rates at their current levels
more than £1.5 billion for policing to support frontline services and key priorities such as body-worn cameras
almost £400 million to support the fire service
£200 million to help tackle the poverty-related attainment gap, almost £390 million to protect teacher numbers and fund the teacher pay deal, and up to £1.5 million to cancel school meal debt
almost £2.5 billion for public transport to provide viable alternatives to car use, and increased investment of £220 million in active travel to promote walking, wheeling and cycling
The Finance Secretary said: “It is an enormous privilege to present my first Budget. A Budget setting out, in tough times, to protect people, sustain public services, support a growing, sustainable economy, and address the climate and nature emergencies.
“At its heart is our social contract with the people of Scotland, where those with the broadest shoulders are asked to contribute a little more. Where everyone can have access to universal services and entitlements, and those in need of an extra helping hand will receive targeted additional support.
“This Budget is set in turbulent circumstances. At the global level the impacts of inflation, the war in Ukraine, and the after-effects of the pandemic continue to create instability. In the UK the combined effects of Brexit and disastrous Westminster policies mean that we are uniquely vulnerable to these international shocks.
“We cannot mitigate every cut made by the UK Government. But through the choices we have made, we have been true to our values and rigorous in prioritising our investment where it will have the most impact.
“We choose investment in our people and public services. This is a Budget that reflects our shared values as a nation and speaks to the kind of Scotland that we want to be.”
RESPONSES:
Responding to the Scottish Budget, STUC General Secretary Roz Foyer said: “With Westminster induced pressure on public spending in Scotland, we’re pleased that the Scottish Government has listened to the STUC and introduced a higher rate of tax for those on higher incomes.
“This represents a markedly positive approach which should be recognised. Equally, taking a more proportionate approach to rebates for business speaks to a Government which recognises the importance of the public sector to growing the economy.
“However, the Scottish Government’s Council Tax freeze and its unwillingness to countenance more ambitious tax reform has left a hole it was never going to be able to fill. High-quality, fully funded public services must be at the heart of a well-being economy and we cannot countenance any cuts – spun and packaged up as ‘reforms’ – which act as a barrier to that goal. Government should be under no illusions on this. The continuation of the regressive council tax simply damages our ability to support local government and those most in need.
“It is disappointing to see opposition parties failing to make any demands of government save for calling, impossibly, for more services but lower taxes. To this extent the whole of the Parliament is letting people down. We have to start of using the full powers of our Parliament to deliver tax reforms aimed at wealth and property, reforms which if implemented could raise £3.7 billion tax.”
Responding to the 2024/25 draft Budget, SCVO Chief Executive Anna Fowlie. said: “The draft Budget represents a missed opportunity to set out vital support for Scotland’s voluntary sector – at a time when it is being squeezed by the cost-of-living and running costs crises.
“While we welcome the Scottish Government’s commitments to move towards Fair Funding for Scotland’s voluntary sector by 2026, there was little evidence of that today.
“The UK Government delivered a modest but welcome package of running costs support for voluntary organisations in England – as part of the Spring Statement. Today, at the very least, the Scottish Government could have committed to doing the same here in Scotland. The sector is still waiting on any such commitment.
“While we recognise the challenging financial environment, the sector needs more than warm words and missed opportunities. Just last month the First Minister told assembled voluntary organisations at the Gathering that he’ll move beyond warm words and put money where his mouth is. Today we didn’t see that.
“We need to see meaningful support for the sector, with urgent progress on Fair Funding to safeguard essential services. We stand ready to support the Scottish Government to deliver that progress.”
Joanna Elson CBE, Chief Executive at Independent Age: “We welcome the Scottish Government’s greater focus on older people in poverty in today’s Budget. The news that all devolved social security payments, including the Winter Heating Payment, have been uprated by inflation and that the fund for Discretionary Housing Payment has been increased will be a welcome relief to those struggling financially in later life.
“However, these measures do not go far enough for the 150,000 older people now living in poverty in Scotland, a figure that has risen by a quarter in the last decade alone, now affecting 1 in 7. Today they really needed the Scottish Government to announce a clear, long-term strategy with legally binding targets and ambitions action to tackle pensioner poverty and reverse this frightening trend.
“Older people in Scotland, including those in financial hardship, urgently need greater representation. We were disappointed that the Scottish Government didn’t use today’s announcement as an opportunity to announce funding for an Older People’s Commissioner.
“A Commissioner would give better representation across policy making and provide a crucial independent voice for people in later life. With 1 in 4 of us projected to be over 65 by 2040, there’s no time to waste.
“While we welcome the measures announced today that will improve life for older people on low incomes, the Scottish Government need to go further and faster to address rising pensioner poverty in Scotland. Both a long-term solution to financial hardship in later life and an end to older people feeling ignored by those in power is needed. The time is now for Scotland to have a pensioner poverty strategy and an Older People’s Commissioner.”
Jonathan Carr-West, Chief Executive, LGIU Scotland,said: “With one in four Scottish councils warning that they may be unable to balance their books next year, today’s budget will not offer much reassurance.
“The Verity House Agreement promised early budget engagement, and it promised ‘no surprises.’ This financial settlement does not meet either of those promises or provide councils with the funding they have told us they need.
“A council tax freeze funded as though council tax were increased by 5% is equivalent to the rises that councils were planning for this year, but it denies them the increase in their tax base and thus undermines their finances next year and for years to come.
“The “additional support” promised all appears to be ring fenced to Scottish Government priorities rather than enabling democratically elected councils to make decisions about priorities in their areas. Again, this goes against the Verity House agreement.
“Before the budget, every council told us they were planning cuts to services, 97% that they were planning to increase charges, and 89% that they would have to spend their reserves. The funding announced in the settlement will not alleviate the need for these biting budget measures.
“The council tax freeze this year will not help residents affected by councils’ inevitable spending cuts and it will not help residents next year, when councils’ spending power is reduced further because their council tax base can’t increase in line with the amount they need.
“Our recent survey shows just how strong the concerns are across local government. Only one respondent to our survey said they were confident in the sustainability of council finances. Not a single person said they were happy with the progress that had been made on delivering a sustainable finance system.
“Senior council figures widely condemned how limited their involvement in the pre-budget process was, and this funding settlement confirms the suspicions that led to only 8% of respondents believing the Scottish Government considers local government in wider policy decisions.
Most worryingly, 8 separate councils (25% of all local authorities) warned us that they could be unable to fund their statutory services – the services they have to provide by law. The funding announced today will be no comfort to these struggling councils, who will now have to make even more difficult choices to make up for their funding shortfall.
For the average resident, this means their life will get more expensive and their services will get worse. For some of the most vulnerable members of society, as councils warned us, it may mean that if nothing changes then there is not enough money to fund the services they rely on.
“The funding settlement is not enough for councils to provide the services that millions of people across Scotland rely on. More than that though, it demonstrates that annual funding settlements of this type are not the right way to fund councils or to empower councils to tackle their long-term challenges.
“Councils should be given more powers over how they raise and spend their own money. This means ring-fencing and directed spending need to be reduced, as agreed at Verity House, and councils need to be free to set their own council tax.”
Commenting on the budget, UNISON’s Scottish Secretary Lilian Macer, said: “Today’s budget is a bad day for local services and deals a further financial blow to local councils who are already struggling to balance the books and to deliver the vital services our communities rely on.
“Our public services are on their knees due to years of underinvestment and the Scottish government’s council tax freeze will be a disaster for local services. We need to see investment in public services and a council tax freeze stops investment in public services, in schools and in the NHS.
“The Scottish government had the chance to make big choices to raise more money for Scotland’s public services but while the measures on income tax are welcome, much more could and should have been done. We still have a government boasting of low business taxes at the same time that they are delaying urgent improvements to public services.
“The Deputy First Minister spoke of cutting the public service workforce – people need to be aware that job cuts mean service cuts. What communities across Scotland need is investment, not abandonment.
“While we welcome investment in the NHS, the Scottish government failed to say how this would be targeted to tackling the staffing crisis and ensuring proper funding so the safe staffing act can make the improvements the NHS so desperately needs.
“Given the Scottish government’s commitment to become a fair work nation by 2025, it’s concerning that there was no mention of fair work anywhere in the budget statement, particularly in social care, a sector in crisis.”
Responding to the Scottish Government’s Budget Stuart McMahon, Scotland Director of consumer group CAMRA whose members had been lobbying MSPs asking for a 75% business rates discount to help save pubs and breweries, said:
“Pubgoers will be deeply disappointed by the lack of help for most of our locals today. Whilst 100% rates relief for hospitality businesses in island communities will be welcomed, failing to pass on extra money from the UK Government to help with business rates for the rest of our hospitality businesses is undoubtedly a blow and puts many of our pubs at risk of permanent closure.
“Yet again it seems that the Scottish Government just doesn’t understand the importance of our pubs, social clubs and breweries as a vital part of our social fabric – bringing communities together and providing a safe, regulated environment to enjoy a drink with friends and family. Our locals are community hubs that need and deserve help to make sure that they survive and thrive.
“With reports that pubs are closing at a faster rate here than elsewhere in the UK, Scottish Government ministers urgently need to re-think the decision not to give our locals the 75% discount with business rates bills that pubs south of the border are receiving. The Scottish Government also needs to support consumers, pubs and breweries in the new year by ditching any plans to bring back restrictive bans on alcohol advertising.”
In response to the Scottish Budget, Stephen Montgomery, Director of the Scottish Hospitality Group said: “We are sorely disappointed that the Scottish Government has not delivered new emergency support for Scottish hospitality.
“Unless a hospitality business is located on the islands, this Budget offers no new support to Scottish hospitality to survive the unprecedented challenge of rising costs, inflation, and the legacy of the pandemic.
“The very real implication is that many Scottish hospitality businesses will struggle to survive, and customers will see prices increase. This will be a bitter pill to swallow for thousands of Scottish hospitality businesses, given English hospitality businesses will be benefitting from a 75% business rates discount for the next year. Our attention will now be focused on helping those hospitality businesses survive what will be a very challenging year to come.
“However, we welcome the Scottish Government’s commitment to exploring a long-term, fairer deal for hospitality on business rates. It is a ray of hope in an otherwise disappointing day for Scottish hospitality.
“This is a golden opportunity to deliver a fairer deal for Scottish hospitality once and for all. We have been engaged with the New Deal for Business Group for a number of months and it is time that the Scottish Government’s actions matched their words.
“The Finance Secretary has committed to introducing a long-term, fairer deal for Scottish hospitality at next year’s Budget. We will hold her feet to the fire to make sure she delivers on this promise.”
Energy regulator Ofgem has today (Thursday 23 November, 2023) announced the energy price cap for the first quarter of 2024.
The price cap will increase by 5% on the previous quarter from 1 January to 31 March 2024. For an average household paying by direct debit for dual fuel this equates to £1,928, a rise of £94 over the course of a year – around £7.83 a month. The price cap, updated every quarter, sets a maximum that can be charged to customers for energy bills.
Ofgem’s priority is to protect consumers and ensure that they pay a fair price for their energy. Today’s price increase is driven almost entirely by rising costs in the international wholesale energy market due to market instability and global events, particularly the conflict in Ukraine.
The regulator will continue to use all levers available to ensure costs are spread fairly and customers struggling with bills are supported. It has today further developed plans to permanently remove the so-called ‘prepayment meter premium’ to ensure that prepayment customers are charged the same standing charge as direct debit customers. Ofgem has already launched a ‘Call for Input’ on standing charges running until 19 January, 2024.
Jonathan Brearley, CEO of Ofgem, said: “This is a difficult time for many people, and any increase in bills will be worrying. But this rise – around the levels we saw in August – is a result of the wholesale cost of gas and electricity rising, which needs to be reflected in the price that we all pay.
“It is important that customers are supported and we have made clear to suppliers that we expect them to identify and offer help to those who are struggling with bills.
“We are also seeing the return of choice to the market, which is a positive sign and customers could benefit from shopping around with a range of tariffs now available offering the security of a fixed rate or a more flexible deal that tracks below the price cap.
“People should weigh up all the information, seek independent advice from trusted sources and consider what is most important for them whether that’s the lowest price or the security of a fixed deal.”
Ofgem recently set out new rules for suppliers making clear that they should be prioritising enquiries from vulnerable customers who need help and proactively reaching out to households if they miss two monthly or one quarterly payment, check to see if they are struggling with bills and, if so, offer support such as affordable payment plans or, if appropriate, repayment holidays.
The regulator has also taken robust action to raise standards of customer service and worked in conjunction with suppliers and consumer groups to encourage industry to support those struggling with their bills, including the Winter 2023 Voluntary Debt Commitment recently announced by Energy UK and Citizens Advice.
A Statutory Consultation on levelling standing charges for prepayment meter and direct debit customers so customers pay the same daily charge has been published today.
Previously, customers on prepayment have been charged more than those who pay by direct debit to cover the additional costs and resources required by suppliers to provide their services.
In October 2022, the government introduced measures to temporarily remove this ‘PPM premium’ via the Energy Price Guarantee, which remains in place until April 2024.
Following a consultation this summer, Ofgem is now proposing an enduring solution that would ‘levelise’ these standing charges to coincide with the end of that government support. This consultation also sets out proposals to share the costs of bad debt more equally across customers to reduce the premium paid by standard credit customers (those who pay on receipt of a monthly or quarterly bill for the exact amount of energy used).
Under the terms of the regulator’s proposal, this would save PPM customers around £50 a year, reduce Standard Credit bills by around £45 a year but add around £20 a year for direct debit customers. Ofgem is keen to hear views on this proposal from all interested parties.
This follows the launch of a wider conversation on the issue of standing charges last week and how they should be set, which has already attracted a high number of responses in the first week of the consultation.
In response to today’s Ofgem energy price cap announcement, Joanna Elson CBE, Chief Executive of Independent Age said: ““Today’s energy price cap announcement offers little reassurance for older people in financial hardship, with bills still 85% higher than before the energy crisis.
“We speak to people in later life who are living in one room because they can’t afford to properly heat their home, those who risk falls because they aren’t turning on the lights, and older people who are in thousands of pounds of debt to energy suppliers. They urgently need help.
“With average energy prices having close to doubled in recent years, coupled with rocketing household costs such as water, food and broadband, those on a low income have endured several years of sky-high costs from all angles. Older people in financial hardship are especially vulnerable to sharp price increases, as many are on a fixed income. The extra money simply isn’t there.
“The UK Government needs to announce financial support now to help the most financially vulnerable, including those in later life, get through this winter. After that, we need a long-term solution to protect against the impact of continuing high prices, including energy.
“Our evidence shows an energy social tariff would offer more stability to older people on a low income and make sure no one is forced to make dangerous choices. This must be something the UK Government consults on.”
The next quarterly price cap announcement will be announced in February 2024, covering April – June 2024.
