Tag: Independent Age

Chancellor to announce ‘Great British Summer Savings’ – a UK-wide scheme to help families enjoy this summer

Cost of living boost with free bus travel for children and targeted food tariff cuts

  • Free bus travel for children throughout August, helping families across England get out and explore 
  • Comes as products including biscuits, chocolate, dried fruit and nuts set to see targeted cuts to agri-food tariffs, to help to reduce pressure on food prices. 
  • Move is latest in government drive to support families and help ease pressures on household budgets.

Families travelling this summer will benefit from free bus travel for children as the Chancellor ramps up efforts to help with the cost of living (we already have this in Scotland – Ed.)  

The Chancellor is committing more than £100 million to fund the free fares scheme and also continuing to support bus services. Every child aged five to 15 in England will travel free on participating local buses throughout August – with unlimited journeys, no registration required, and at no cost to families.  

It is part of a scheme called ‘Great British Summer Savings’. The Chancellor will set out more details today on how the Government will support families and businesses this summer.

Prime Minister Keir Starmer said: “We know many hard‑working families are still feeling the squeeze and too often think they have to hold back. 

“By giving every child free bus travel throughout August and cutting tariffs on everyday food items, we’re putting money back into people’s pockets and making life that bit easier. 

“This government is focused on practical steps that help right now — easing pressure on household budgets, supporting parents during the school holidays, and backing British businesses.”

It comes as the government prioritises protecting households and businesses from rising costs, and the announcements today will build on the work to cut energy bills, protect motorists and crack down on unfair profiteering.  

This month the government has delivered £117 off energy bills on average, increased the minimum wage again and frozen rail fares and prescription charges, thanks to the choices the Chancellor made at the Autumn Budget.  

As the war in Iran puts pressure on prices at home, the government has stepped in with a tax cut for hauliers to keep our shelves stocked and economy moving, extended the 5p fuel duty freeze to protect motorists at the pump, and emergency relief for families in rural communities who have been hit by a sharp increase in the price of heating oil.  

The Chancellor will say that in an era of global conflict, this government has the right economic plan, as economic indicators showed the UK beating the forecasts again this week. The UK was the fastest-growing economy in the G7 at the start of this year, and Monday the IMF upgraded our growth forecast for 2026. Yesterday we saw inflation falling faster than expected, thanks to the action taken at the budget to keep energy prices down. 

Chancellor of the Exchequer Rachel Reeves said: “My number one priority is protecting households from rising costs. This summer I want every family to be able to enjoy themselves, that’s why we’re launching the Great British Summer Savings Scheme, and why we’re helping kids with free bus travel throughout August. 

“As the war in Iran pushes prices up at home, my economic plan is the right one. I will continue to make the right choices, to protect households and businesses, and build a stronger and more secure Britain.”

Transport Secretary Heidi Alexander said: “Free bus travel for every child in August means parents can plan days out, visit loved ones and make the most of the holidays without the added financial pressure. 

“We’ve already seen what’s possible – in the West of England, the Mayor’s free travel scheme is making a real difference, particularly for young people in the most deprived communities. That’s exactly the kind of impact we want to deliver for families right across England this summer. 

“This builds on the work we’re already doing to make buses better for everyone – from the £3 bus fare cap and the landmark Bus Services Act, to our £3 billion investment in local services and frozen rail fares for the first time in 30 years. We’re making sure public transport works for people, not against them.”

Free bus travel for children will run from 1 to 31 August and covers participating local bus services across England. This could save a family with two children who make a weekly return trip at a £1.50 child fare £27 in August. 

It comes following a successful pilot ran last summer by the Mayor for the West of England, Helen Godwin. 

Helen Godwin, Mayor of the West of England, said: “Kids Go Free in the West of England has seen around 1.4 million free journeys over the summer, Christmas, and Easter holidays since my election last year. 

“It’s brilliant that, after we have invested devolved funding to make a difference that people across the West can see and feel, the government is rolling out Kids Go Free nationally this August! 

“There’s been a huge increase in public transport use through our offer already, including children and families travelling on our new green buses. Bus travel from our lowest income areas doubled year-on-year last summer, with kids able to just hop on board and no registration needed.

“I’m so excited to see Kids Go Free return again for the school summer holidays – helping more children and young people to explore the best of what the West has to offer.”

This funding also includes support for bus services that have experienced increased costs, recognising the vital service they provide particularly for school children, pensioners and those living in rural communities. The Government will work with the sector to decide how this support can be allocated with the greatest impact.  

Separately, as part of wider efforts to reduce pressure on prices, the Government is launching a business engagement exercise, with a view to making further targeted cuts to agri-food tariffs, suspending tariffs on over 100 types of products including biscuits, chocolate and dried fruit and nuts. 

The expected benefit to consumers is more than £150 million a year. The full list of products will be published next week, with business engagement commencing next week. As per previous commitments, the list takes account of domestic production and food security and does not include any significant UK primary agriculture production. This is on top of the expected consumer benefits from agri-food tariff suspensions, announced at the end of April, of around £100 million to £400 million each year. 

Today’s announcements build on action the government has already taken to reduce the cost of living, including cutting energy bills, freezing prescription charges, protecting motorists from fuel duty increases and raising the minimum wage. Yesterday (May 20) the Government announced extending the 5p fuel duty cut until end of year.

Michelle Ovens, CBE, CEO & Founder of Small Business Britain, said: “It’s fantastic to see the Chancellor’s commitment to additional funds for the free fares scheme.

“Giving children across the country the opportunity to travel freely during the summer holidays is vital in broadening aspirations, building life experiences, and encouraging young people to envision a future without boundaries.”

Ben Plowden, Chief Executive of Campaign for Better Transport, said: “This is a welcome move to help more families to get out and about by bus this summer and highlights the importance of affordable public transport in easing cost-of-living pressures on hard-pressed households.

“Investing in affordable, reliable bus services is one of the most cost-effective ways of improving people’s quality of life and tackling rising energy costs year-round.”

Lydia Horbury, CEO of passenger champions Bus Users UK said: “Making bus travel free for children throughout August is a hugely welcome step that will help families, encourage greater use of public transport and give young people more independence and opportunity over the summer holidays. 

“For many households, even small savings can make a real difference, and this initiative removes both cost and complexity by making travel simpler and more accessible. It is also a wonderful opportunity for more families to experience the convenience and value of local bus services first hand. 

“We hope this not only supports communities over the summer but also inspires lasting confidence in public transport and encourages the next generation to see buses as an easy and sustainable way to travel.”

Jason Prince, Director of the Urban Transport Group, said: “Buses are the most used form of public transport, essential in connecting people to opportunities. 

“Building on the successful fares offers of many of our member transport authorities, Kids Go Free is a welcome and timely intervention – helping to make public transport more affordable over the summer holidays, and supporting families and young people to get to where they want to go.”

THERE ARE SOME WORDS OF CAUTION, HOWEVER …

Helen Barnard, Director of Policy and Research at Trussell said: “We are deeply concerned about the rising cost of living and the risk this will drive even more people into hunger and hardship, piling pressure on food banks that are already under immense strain.

“This package of summer support will do little to reassure people already struggling to pay their bills and put food on the table that the government has grasped the potentially dire impact of coming price rises, or is prepared to protect people at most risk of being forced to the doors of food banks.

“We expect energy bills to start rising this summer, continuing into the winter, with food and other costs also expected to rise over the year into winter and especially in early 2027. The government must urgently prepare a package of targeted measures to protect people on the lowest incomes from being forced into severe hardship as these cost pressures take hold.

“Last year, food banks in the Trussell community provided more than 2.6 million emergency food parcels across the UK. This isn’t right. The UK government must put appropriate plans in place to protect people on the lowest incomes from bearing the brunt of further spikes in prices and ensure that everyone can afford the essentials.

“The government made a UK manifesto promise to end the need for emergency food. We will not see this become a reality without further bold action to build on the progress it has started.”

Director of Policy and Influencing at Independent Age Morgan Vine said: “The cost of living support measures announced today to reduce the price of some food and travel are positive, but do not address the biggest issue weighing on older people living in financial hardship right now, energy bills.

“It’s inevitable that energy prices are going to soar as we move through summer and into the colder months.

“People in later life on low incomes  tell us they are increasingly anxious and are already cutting back on essentials. Many simply cannot afford any further increases in their bills. We urge the UK Government to announce as soon as possible additional targeted energy support for low-income households. 

“People of all ages on low incomes urgently need this reassurance so that they have a chance at keeping their homes warm during the colder months.”

Britain is undersaving for retirement, warns Pensions Commission

The Pensions Commission has today (19 May) published its interim report on the state of retirement saving in the UK, setting out the key challenges facing the current system and where it will focus its work next.

  • Interim report highlights key challenges in retirement saving across the UK with 15 million people currently undersaving for retirement.
  • Findings sets direction for further work to improve retirement outcomes ahead of final recommendations in 2027.
  • Commission set up as part of government’s wider reforms to pensions system to help more people retire with dignity.

The Pensions Commission has today (19 May) published its interim report on the state of retirement saving in the UK, setting out the key challenges facing the current system and where it will focus its work next.

The report highlights that many people are not saving enough for retirement, particularly among low and middle earners, the self‑employed and women, and points to the need for the system to evolve to meet modern working lives.

There are currently 15 million people under saving for retirement which could reach 19 million without action, leaving large groups across the UK facing a severe cliff-edge when they retire, according to a new report from the Pensions Commission.

Set up by the Government in July 2025, the Commission aims to address a savings challenge that has been building for decades, examining why tomorrow’s retirees’ risk being worse off than today’s and making recommendations to reverse this.

This follows the success of the 2002 to 2006 Commission which built a consensus for the roll-out of Automatic Enrolment into pension saving, resulting in 89% of eligible employees now saving into their pensions, up from 55% in 2012.

Its findings include:

  • Low and middle earners are most at risk, with around half saving only at minimum Automatic Enrolment levels with little else to fall back on.
  • 45% of working-age adults – around 18 million people – are not saving into a pension at all, despite nearly half of them being in work.
  • Where employers are contributing about the statutory minimum this is largely benefiting higher earners.
  • Just 4% – one in 25 – of wholly self-employed workers are saving for retirement, and it’s even lower among younger self-employed people.
  • On current trends around 3 in 10 private pension pots are accessed at the earliest possible opportunity with half of all pots taken out in full. Nearly half of these are spent on large expenses like a car, holiday or renovations.

The Commission examined why tomorrow’s retirees are on track to be poorer than today’s with too many working age adults are saving nothing at all into a pension. A final report with recommendations will follow in early 2027.

Pensions Commissioner, Baroness Jeannie Drake said: “Over the past two decades since the Turner Commission there is no doubt pensions reform can be described as a success. Yet the second Pensions Commission is looking forward and seeing many people not saving enough and millions not saving at all.

“This demands a renewed national settlement on pensions.

“Achieving this will require clarity of purpose, but it also offers a moment of opportunity; to renew a social contract that commands confidence across the country.

“The recommendations we present in our final report will address the need to secure adequate income in later life and a pension system that is fit for decades to come.”

The Commission will set out the course to improving future outcomes whilst ensuring the system is fair and sustainable within and between generations.

Minister for Pensions, Torsten Bell MP, said: “Britain has got back into the pension saving habit, but the job is only half done with tomorrow’s pensioners still on track to be poorer than today’s.

“The Pensions Commission sets out clearly the scale of the challenge: not enough people are saving for retirement, and many of those that are aren’t saving enough.”

The Commission warns that without action millions more people could be at risk of becoming reliant on state support in retirement.

It adds that there is much for public policy to do to shape the future of pensions, whilst maintaining the broad political consensus pensions has had since the Turner Commission in the 2000s. The Commission is clear that change must happen in the right way, with any recommendations for change implemented gradually.

The Government has ruled out any changes to Automatic Enrolment contributions this Parliament.

Dr Yvonne Braun, ABI Director of Long-Term Savings Policy said: “The report makes a powerful case for a new national settlement for pensions. Automatic enrolment is a sturdy foundation, but must evolve to meet the scale of the challenges ahead.

“We and our members stand ready to work with the Commission to deepen saving, extend coverage and support better decisions in retirement, so that everyone can look forward to greater financial security in later life.

“Over the next year the Commission will hear a wide range of views before presenting its final report and recommendations in early 2027. A call for views from all interested parties has also launched today.

Rocio Concha, Director of Policy and Advocacy at Which? said: “Which? welcomes this interim report from the Pensions Commission and the valuable evidence it brings together on the UK’s pension adequacy challenge.

“It is very encouraging to see recognition of the need to increase private pension saving rates and coverage, while also acknowledging the financial pressures caused by the cost of living crisis.

The report rightly highlights that too many working people are projected to reach later life without sufficient savings, and that women, carers, the self-employed and many ethnic minority groups continue to face structural barriers. It is also promising to see a strong focus on how to support people to use their pension savings throughout retirement.

“Which? looks forward to continuing to work with the Commission, industry and wider civil society groups to help drive the reforms needed so people are better prepared for retirement.”

Julian Mund, Chief Executive of Pensions UK, said: “Pensions UK welcomes the breadth and ambition of this report, and shares the Commission’s view that we need a new national settlement on pensions.

“Evidence presented in the report clearly strengthens the case for more pension saving over longer working lives, alongside systemic change that delivers sustainable incomes – building on welcome reforms in the Pension Schemes Act.

“We look forward to working with Government to explore how that diagnosis can be turned into a practical roadmap for reform, well before the next generation fall short of the retirement incomes they expect and deserve.”

Caroline Abrahams, Charity Director at Age UK: “We welcome this new report from the Pensions Commission, which provides an excellent analysis of the problems facing our pensions system today.

“This is the first and necessary step for ensuring the pensions system of the future enables tomorrow’s older people to have a decent standard of living.

“There’s a clear need to improve the way the State Pension and private pension systems work together; otherwise people on low incomes are at risk of falling through the cracks and hurtling towards their retirements without the required funds, or the time to make up the shortfall.

“We look forward to working with the Commission as it explores the best solutions for future pensioners.”

Aside from the commission, the government is also reforming the pension landscape and improving retirement for today’s workers. The Pension Schemes Act, passed this month, will benefit 22 million workers by up to £29,000 by the time they retire, driving down costs, boosting returns and enabling the automatic consolation of small pension pots to ensure every pound saved works harder for working people.

Louise Hellem, Chief Economist, CBI, said: “The publication of the Pensions Commission’s interim report is an important step towards building a long-term framework that delivers adequate living standards in retirement. Getting this right requires the government, businesses and individuals all to play their role in supporting better saving.

“As the debate progresses, it is vital that retirement adequacy is considered hand in hand with the UK’s growth ambitions. Strong economic growth underpins sustainable pension outcomes by supporting employment and higher sustainable wage growth, enabling individuals to save, and driving stronger investment returns over time.

“It is only growth that can sufficiently reduce difficult trade-offs and maintain political, public and business support for change.”

TUC General Secretary Paul Nowak said: “Workers deserve a pension system that guarantees against poverty in retirement and enables them to maintain their standard of living.

“Although millions more people are now building up workplace pensions, far too many on low and middle incomes are not heading for a decent retirement – with women, Black and minority ethnic and disabled workers, and those in the gig economy at highest risk.

“The Commission must now develop a bold plan to fix this, which will need to include higher employer contributions and a fair deal for those currently missing out.”

Nausicaa Delfas, Chief Executive of The Pensions Regulator, said: “The pensions system is still unfinished business with too many people on track for an inadequate retirement income.

“That is why we welcome the Pensions Commission report, and look forward to continuing to work with the Commission, Government and industry to create a system which delivers what matters most: a sustainable income in retirement for everyone.

Independent Age Chief Executive Joanna Elson, CBE reacts to the Pension Commission’s interim report: “We welcome the Pension Commission’s interim report, which clearly sets out the challenges future pensioners will face in securing an adequate income.

“It is positive that the Commission recognises the vital role of the State Pension and social security entitlements in supporting those on low incomes. The findings that certain groups, including women and disabled people, are at greater risk of under-saving are concerning, but not unexpected. They echo our own research, which shows that these groups are more likely to experience poverty in later life.

“With 1.7 million older people currently living in poverty and 1 million more hovering precariously on the edge, it is clear change is needed to ensure a future where everyone in later life has a dignified and financially secure older age.  

 “We look forward to continuing to work with the Commission as it develops its final recommendations.”

Charities call for end of rule locking 70,000 pensioners out of vital financial support

National charity Independent Age and 12 other organisations1 have teamed up to send an open letter to the Secretary of State for Work and Pensions Pat McFadden, calling for an end to the mixed age couples rule. 

The rule, introduced in 2019, could be preventing around 70,000 low-income couples from receiving entitlements specifically for older people until they bothreach State Pension age, leaving affected couples up to £7,000 worse off a year.

As well as the range of organisations calling for change, new polling from Independent Age shows that a large majority of the UK public back ending the rule, with 62% saying that couples where one person is over State Pension age should receive pension-age entitlements2.

Together the organisations are urging the UK Government to reverse the mixed-age couples rule, to allow couples to claim pensioner benefits, like Pension Credit, once the older partner reaches State Pension age.

Data from 2019 shows that 12% of couples who could be eligible for Pension Credit have an age gap of more than 10 years, meaning the older partner may have to wait an extremely long time to access pensioner entitlements, adding to their financial strain. While couples in this situation are eligible to receive Universal Credit, this is paid at a lower rate and is not designed to meet the needs of people over State Pension Age.

In the letter the organisations say the issue is urgent:

‘Nobody should be punished financially because of who they love. Yet as many as 70,000 older people are missing out on the financial safety net designed to protect pensioners, just because of their partner’s age. 

‘This is urgent. With the incoming rise in State Pension age, more and more couples on a low income will face an even longer wait to receive the entitlements they need due to the mixed-age couples rule.’

Independent Age Chief Executive, Joanna Elson CBE said: “Every day we hear from older people struggling to make ends meet, and for thousands of mixed-age couples the system is making that struggle even harder.

“This rule is unfairly locking around 70,000 older people out of vital pension-age support simply because their partner is younger.

“The UK Government has created a flawed system where two people of the same age can be treated completely differently depending on who they love. The financial support they are missing out on could be the difference between heating and eating or paying the rent.

“Twelve organisations have joined us in calling on the UK Government to act now and scrap the mixed-age couples rule, to ensure all older people on a low income get the financial security and dignity they deserve once they reach pension age.”

In the letter the organisations also express concern over ‘the assumption that all younger partners are able to be financially responsible for their household’ and how this ‘does not reflect reality for many couples. In lots of cases, a younger partner will have health conditions or unpaid caring responsibilities that could mean they are unable to work.’

Lynn, 62, and her husband David from Eastbourne have a five-year age gap and have been unable to access the support they need as a result: She said: “David and I met on a blind date. We’ve been married for nearly 24 years.

“Although David is my full-time carer, we’ve had a hard time getting any financial support because he’s five years older than me. We used to receive Employment and Support Allowance, but once my husband reached State Pension age, it stopped.

“David and I trudged around four different places, including the council, to try and find out what we were entitled to and we were told we could claim Pension Credit. But after seven months of receiving Pension Credit, we got a letter saying there had been a mistake and we weren’t entitled to it because we are a mixed-age couple. We were told to apply for Universal Credit instead.

“All this happened when we were in the middle of moving house and our Pension Credit payment was due. I remember thinking: Now what are we going to do? and being so worried as we literally had no money for our move. We just couldn’t understand why we were told we were eligible to claim Pension Credit and then the payments were suddenly stopped.

“For the first time ever, we had to turn to a food bank to get by. If it wasn’t for our children, I don’t know what we’d have done. They helped us get through this very stressful time in our lives.”

Jan Shortt, General Secretary, National Pensioners Convention said: “To treat people differently on the basis of who they fall in love with is nonsense. 

“Mixed age couples are suffering financially because they cannot access the support they need.  Decisions made by the government penalise mixed age couples and this must be addressed to enable them to be financially secure in the future.”

The organisations who have signed the letter alongside Independent Age are:

Age Scotland

Ageing Without Children (AWOC)

Age UK

Civil Service Pensioners Alliance

National Federation of Occupational Pensioners

Northern Irish Commissioner

National Pensioners Convention (NPC)

Re-engage

Unison Retired Members

National Association of Retired Police Officers (NARPO)

Welsh Older People’s Commissioner

Wise Age

For more information on Independent Age’s mixed aged couples campaign, see: 

Mixed-age couples locked out of vital support | Independent Age

Anti-poverty campaigners call for a new Minimum Income Guarantee and a boost in Scottish Child Payment

LATEST POVERTY STATISTICS PUBLISHED

Campaigners have called for a Minimum Income Guarantee and an immediate increase in the Scottish Child Payment that will lift thousands out of poverty.

Poverty Alliance chief executive Peter Kelly was reacting to new Scottish Government figures on poverty and inequality.

He said: “Poverty is a profound injustice that robs people of what they need to build a decent life for themselves and a better future for our country. These figures show that MSPs in the next Scottish Parliament need to invest much more in the social foundation we all rely on.

“Because of changes in the way the figures have been worked out, we have to be cautious about the comparisons we make. But they show some welcome progress over the last few years, with the overall number of people in poverty falling by about 130,000 since 2021/22, and the number of children in poverty from 540,000 to 420,000.

“But we have serious concerns that those numbers could increase again, as people face yet another energy crisis and the prospect of rocketing living costs across the board.

“The figures show that there are 630,000 people in severe poverty – with children making up 150,000 of them. It is simply wrong that so many of our fellow citizens find themselves pushed so close to deprivation.”

The Poverty Alliance repeated its calls to boost the Scottish Child Payment to £55 a week.

Peter Kelly said: “Our new MSPs will have a legal responsibility to make sure that fewer than 10% of Scotland’s children are in poverty by 2030/31. Today’s figures show that 21% of our children are living with that daily injustice.

“We simply cannot allow this to continue. The Scottish Government can help by strengthening the support we give to households with children, and the UK Government can help by scrapping the unjust benefit cap.

“And over the course of the next Parliament, we will continue to build public support for real Living Wages and a Minimum Income Guarantee that will make sure everyone has what they need to use their talents for the benefit of themselves, their households, and all of us.”

Responding to today’s statistics on household incomes and poverty which show one in five children in Scotland are trapped in poverty, Chief Executive of Children First, Mary Glasgow said: “A small drop in child poverty does not change the urgent need for action to tackle Scotland’s childhood emergency and meet Scotland’s 2030 child poverty target.

“It is not acceptable that one in five children in Scotland are living in poverty. It has a devastating impact on children’s mental health, wellbeing, education and prospects that can last into adulthood. Reducing child poverty is an investment in Scotland’s future, improving public health, strengthening communities and reducing public costs in the long term.

“In the run up to the election, every political party must prioritise policies that support families, strengthen incomes and uphold Scotland’s commitment to eradicating child poverty.”

Commenting on today’s latest official poverty statistics, Debbie Horne, Scotland Policy and Public Affairs Manager at Independent Age said: “Today’s statistics show there are still too many pensioners living in poverty in Scotland. 

“As the national charity supporting older people on low incomes, we know that older people are skipping meals, washing in cold water and not turning the heating on. This is wrong and a social injustice.  

“As the Holyrood elections approach, all political parties must prioritise action to reduce pensioner poverty. This should start with a national strategy, a plan setting out the key actions to reduce poverty in older age and act as a map for how we will get there. 

“They must also pledge to improve the social security support for older people on low incomes, and commit to supporting older people improve the energy efficiency of homes. 

“We also urge the UK Government to introduce a social tariff for energy across the whole of the UK to reduce the cost of heating for older people on low incomes. The UK Government must also improve the take-up and adequacy of the payments they administer to older people. 

“The levels of poverty in later life are too high in Scotland, and with around 1.7 million older people now in poverty across the UK, today’s figures must be a call to action.” 

TRUSSELL commented: “It’s encouraging that child poverty is falling in Scotland. It shows the power of investing in social security.

“But it’s not acceptable that 1 in 5 children are locked in poverty. All parties must commit to decisive action to ensure every child has a decent start in life.”

Cara Hilton, Senior Policy and Public Affairs Manager at Trussell, said:  “Today, the Family Resources Survey has revealed a heartbreaking injustice; persistently high numbers of people across Scotland are trapped in the grip of severe hardship.  

“While the latest figures indicate that some people are getting back on their feet, the numbers of people facing hunger in our communities are still too high. As we find ourselves yet again facing uncertain times, we know that progress can be too easily undone. People just surviving could once again be pushed over the edge if the price of food and bills increases. 

“Food banks in our community provided more than 220,000 food parcels in Scotland in 2025 – that’s 64% more than in 2015. These new figures from the government confirm that 500,000 people are facing hunger across Scotland. This isn’t right.  

“With the Holyrood election just six weeks away, Trussell is calling on all political parties to commit to building a Scotland where everyone can afford the essentials and where every child has a decent start in life.

“This should include immediate investment to increase the Scottish Child Payment to £40 a week, increasing to £55 by the end of the next Holyrood session. We need the Scottish government to build firmer foundations for people on the lowest incomes so all of us have the support we need to thrive.”  

Latest poverty statistics published

Two poverty statistics publications were released by the Scottish Government yesterday. Poverty and income inequality in Scotland 2022-25 covers the period up to March 2025, presenting poverty rates for children, working-age adults and pensioners.

Methodological changes have been applied to the statistics in this report as the Department for Work and Pensions have linked the source data from the Family Resources Survey to administrative records on social security benefits.

As a result, there have been revisions to previously published poverty rates back to 2021/22, and further revisions are planned as part of on-going development work. Users should therefore note that caution is needed when interpreting the statistics to assess trends over time.

The most recent three-year averages for 2022-25 show that:

  • Around 17 per cent of Scotland’s population (940,000 people) were living in relative poverty after housing costs. This was 15 per cent (840,000 people) before housing costs. Poverty rates for Scotland’s population have been broadly stable for around a decade.
  • Children are more likely to be in relative poverty: 21 per cent of children are in relative poverty after housing costs, compared to 13 per cent of pensioners and 18 per cent of working-age adults. Children in relative poverty are more likely to be in a working household; 75% of children in relative poverty have at least one person working in the household while 25% have no-one in household working.
  • The median household income before housing costs was £707 per week and after housing costs was £636. Prior to 2021/22, median incomes had increased slowly but steadily since the recession in 2008/09.

Persistent Poverty in Scotland 2010-24 presents statistics on people who live in relative poverty for at least three out of the last four years. The latest figures show that around one in ten people in Scotland (11 per cent) were in persistent poverty, after housing costs, between 2020 and 2024. Persistent poverty rates were highest for children (17 per cent), and lower for working-age adults (10 per cent) and pensioners (9 per cent). 

Persistent poverty is an important measure because the longer someone is in poverty, the more it impacts on their health, well-being, and overall life chances. These impacts can affect an individual throughout their lifetime. 

Further information on the two publications is set out below:

This Poverty and Income Inequality in Scotland publication contains statistics on poverty, child poverty, poverty risks for various equality characteristics, household income and income inequality for Scotland. This report also includes statistics on household food security. The data comes from the Department for Work and Pensions’ Family Resources Survey (FRS), Households Below Average Income dataset. Comparable UK income and poverty figures are published on the same day by DWP.

Statistics from this report have been revised, back to 2021/22, due to a methodology change. The FRS is now linked to administrative data, which means the majority of FRS responses for benefit income and tax credits have been replaced with data from DWP’s administrative sources. Further years of linked estimates back to survey year 2018/19 will be published in summer 2026 in a follow up release. The absolute poverty measure has also been amended as a result of the data linkage; full details can be found in the report.

This publication has been designated as official statistics in development in line with the other devolved administrations in order to acknowledge the changes to the methodology and that there will be a period of flux as further methodological changes are implemented. Future changes are announced by DWP in their release strategy, which is updated periodically as plans develop. A statistical blog has been published on the Scottish Government website to inform users of developments.

Figures are presented in the main report are three-year averages of each estimate. Three-year estimates are better to identify trends over time. The four child poverty measures in the Child Poverty (Scotland) Act are based on single-year figures. These statistics are available in the reference tables and in the child poverty summary. The single-year estimates exhibit more year-on-year fluctuation compared to the three-year averages and should be interpreted with caution.

This Persistent Poverty in Scotland publication presents estimates of the proportion of people in Scotland who live in persistent poverty. The data comes from the Understanding Society Survey, and the latest statistics cover the period from 2020 to 2024. Statistics from this report are badged as official statistics. 

Poverty statistics are used by the Scottish Government and other organisations to monitor progress in tackling poverty and child poverty, and to analyse what drives poverty and what works for tackling poverty and income inequality.

Official statistics are produced in accordance with the Code of Practice for Statistics.

Key poverty measures:

Relative poverty: A person is in relative poverty if their current household income is less than 60% of the current UK median. Relative poverty statistics fall if income growth at the lower end of the income distribution is greater than overall income growth.

Absolute poverty: A person is in absolute poverty if their current household income is less than 60% of the UK median in a given reference year, adjusted for inflation. Absolute poverty statistics fall if low income households are seeing their incomes rise faster than inflation. Due to the structural break introduced by the data linkage the reference year for absolute poverty has been moved from 2010/11 to 2024/25. 

Combined low income and material deprivation identifies the proportion of children in households with incomes below 70% of the median UK income and going without certain basic essential goods and services.

Persistent poverty identifies the number of people in relative poverty for three or more out of four years. People who live in poverty for several years may be affected by it throughout their lifetime.

The poverty publications present poverty figures before and after housing costs. Before-housing-costs figures are a basic measure of household income from earnings and benefits. After-housing-costs figures subtract spending on rents, mortgage interest payments and other unavoidable housing costs from this basic income. In Scotland, poverty statistics focus mainly on poverty after housing costs.

Further information on income and poverty statistics within Scotland is available.

Poverty+and+income+inequality+statistics+2022_25Download

Letters: Make Tackling Pensioner Poverty a Priority

Dear Editor,

The Holyrood elections are fast approaching. Here’s why all candidates must make tackling rising pensioner poverty a priority.

In Lothian, 22% of older people told us they have skipped a meal, and 65% told us they are cutting back on heating and utilities. Across the region, around 13% of people over State Pension age survive on a very low income of under £15,000. None of us deserve to live our later life like this.

Many older people in Lothian also tell us they are feeling unheard, with 64% revealing that they don’t feel represented by the Scottish Government.

Without action, the number of older people in poverty across Scotland could rise by 20,000 by the end of the next Scottish Parliament. At Independent Age, we’re calling on all candidates to commit to a national pensioner poverty strategy in their 2026 Scottish Election Manifesto.

Not only is it the right thing to do, but it’s backed by the older public, with 83% of all older people in Lothian supporting the Scottish Government in doing this. We also want to see the next Scottish Government help older people feel listened to and represented, by creating an Older People’s Commissioner.

Together, we can make Scotland the best place in the world to grow old.

Debbie Horne,

Policy and Public Affairs Manager at Independent Age

Independent Age comments on latest private renting statistics

The Scottish Household Survey (SHS) is an annual survey of over 10,000 households. It covers a range of different topics including your home, your neighbourhood and your views on local public services.

The Scottish Government, local councils and various charities use the results to improve the lives of people in your area and across Scotland. The survey has been running since 1999 and is independent of all political parties.

The latest survey was published yesterday.

Commenting on statistics released today in the Scottish Household Survey Debbie Horne, Scotland Policy and Public Affairs Manager for Independent Age said: “Older people now make up 13% of all private renters across Scotland.

“Privately renting in later life can be difficult, especially when living on a low, fixed income. Almost one in three (32%) older private renters live in poverty. With a growing proportion of the private rented sector made up of older people, it’s vital the Scottish government ensures renters of all ages, including those who are older, can live securely.

“With the Holyrood election fast approaching, we’re calling on all parties standing for election to commit to policies to support older renters in their manifesto. Over 25,000 pensioners are on the waiting list for a social home in Scotland, with almost three quarters (74%) waiting over a year.

“The next Government must build more affordable social housing. They must also improve access to, and increase funding for, Discretionary Housing Payments. These can help make up the shortfall between Housing Benefit and rental costs.

“They are vital to avoid older people making dangerous cutbacks on essentials like food and heating to be able to afford their rent, but most older people who could potentially access them are unaware they exist.”

Scottish Budget: Delivering for families and public services?

The 2026-27 Budget will support a stronger NHS, with a record £22.5 billion for health and social care, expand cost of living support and invest in Scotland’s infrastructure.

Published alongside the latest multi-year Scottish Spending Review, Infrastructure Strategy and Infrastructure Delivery Pipeline, the draft Budget invests almost £68 billion including direct support for families and household budgets.

The 2026-27 Budget includes: 

  • a cost of living package to: help families with funding to trial a programme of activities in a range of primary schools between 3-6pm; a Summer of Sport – free children’s sporting activities, including lessons on how to swim for every primary school child in the country; and a breakfast club for every primary school by August 2027
  • continued investment in Scotland’s existing cost of living measures, including free prescriptions, free eye examinations, removal of peak rail fares on Scotrail, free tuition fees for young Scots, free school meals for thousands of children, including all pupils in P1 to P5, and free bus travel for under-22s and over-60s
  • funding to increase Scottish Child Payment to £28.20 per week and investment to allow the introduction of a premium payment of £40 per week for eligible children under 12 months from 2027-28, bolstering efforts to drive down child poverty
  • extra funding to keep more children out of poverty from funds initially set aside to mitigate the UK Government’s two-child cap, including £50 million of whole family support and a further £49 million for measures to be announced in the Child Poverty Delivery Plan in March
  • tax choices which increase the Basic and Intermediate rate income tax thresholds to put more money in the pockets of low and middle income earners, maintain current income tax rates and bands, and provide a competitive non-domestic rates relief package worth an estimated £864 million, including measures for pubs, restaurants and retailers
  • a record £22.5 billion for health and social care, including a record £17.6 billion for NHS boards and resources to begin the national rollout of walk-in GP clinics, making it easier to access same-day appointments
  • an almost £15.7 billion record settlement for local government to support the services communities rely on including social care and education
  • significant extra funding for universities and colleges, with colleges seeing a combined increase of £70 million in resource and capital funding, equivalent to a 10% uplift,  targeted support to help retrain workers in the oil and gas sector and ongoing commitment to Scotland’s apprenticeships, which this year will provide more than 31,000 Scots with a pathway to sustainable, well-paid jobs
  • over £5 billion to tackle the climate emergency, reduce carbon emissions and increase resilience as well as backing regenerative and sustainable skills in food and farming
  • £4.3 billion transport funding including investment in railways, the renewal of the ferry fleet, removal of peak season fares for residents of Orkney and Shetland on Northern Isles ferries and nearly £200 million for the dualling of the A9
  • record investment in new affordable homes

Ms Robison said:“This Budget delivers for families across the country, for a stronger NHS, and for a more prosperous future. 

“It will fund landmark policies to continue efforts to eradicate child poverty – investing in a brighter future for Scotland and the children growing up here.

“Almost £68 billion is being invested in 2026-27 and almost £200 billion through the Scottish Spending Review and Infrastructure Investment Pipeline, demonstrating the scale of our ambition for our nation.”

Other measures include:

  • from April 2027, an Air Departure Tax (ADT) will come into force and the framework offered by the new ADT will be used to introduce a private jet supplement
  • the introduction by April 2028 of two new council tax bands for the most expensive properties in Scotland, those worth more than £1 million, on an up-to-date valuation
  • support for high-growth firms to attract private investment and connect entrepreneurs
  • £200 million for the Scottish National Investment Bank – delivering on the commitment to invest £1 billion in the Bank by the end of the parliamentary term
  • record funding for police and fire services and an additional £10 million investment in community justice services
  • a £20 million increase in the culture budget, recognising Scotland is richer because of its world-famous culture and creative sector
  • support for the creation of a diverse and sustainable supply chain for offshore wind, to boost the economy.

Scottish Budget 2026-27

Scottish Spending Review 2026

Infrastructure Strategy

REACTIONS:

Responding to today’s proposed Scottish Budget, Poverty Alliance Policy & Campaigns Manager Ruth Boyle said: “People in Scotland want a just and compassionate society – but too many feel the system is rigged against them.

“There was some good news today – but we can do much more to make sure that every child in Scotland gets the investment they need for a decent life and a better future.

“Ensuring that every child in primary school gets a healthy breakfast is an excellent investment, because no child should go to school hungry.

“Increasing the Scottish Child Payment to £40 for eligible households with a baby under 1 is welcome and will help families at a time when they face increased costs. However, this must be a first step towards boosting that payment to £40 for every eligible child in the country.

“That is the kind of fundamental investment the Government needs to make if they are serious about meeting the 2030 child poverty targets.

“With Scotland not on track to meet those legally binding targets, we need all political parties to set out their plans to invest in country where no child lives in poverty. Our children can’t wait any longer.

“We can make that kind of investment in Scotland – and there is support for it. In among the Budget documents is new polling from YouGov showing that 54% of people in Scotland believe that Government should redistribute income from the better-off to those who are less well off. Just 29% disagree.

“The Scottish Government must raise revenue to invest in our shared national priorities, like tackling child poverty and reducing the cost of living. It’s right that the Government has turned to those with the biggest assets to contribute more with a tax on private jets and increased council tax for the highest value homes. 

“This has to be the start of long-promised, fundamental reform of council tax so that our local councils can provide the services that all of us need, and that are a vital lifeline for so many households in poverty.

“The Poverty Alliance will continue to call for the measures we need to provide a Minimum Income Guarantee that no-one will fall under – including increasing wages, investing in strong public services, and providing a social security system that gives everyone in Scotland a secure foundation to build a better future.

“Today’s budget has some positive steps towards that ambition – but we need to go further and faster if we are to build a Scotland free from poverty.”

Commenting on today’s draft Scottish Budget, Mary Glasgow, Chief Executive of Children First, Scotland’s national children’s charity, said: “It’s hugely positive to see child poverty being made a top priority in today’s budget.

“The significant funding boost to whole family support and extra resources for third sector organisations will provide a lifeline to families who need help most, right across Scotland.

“But we can’t afford to slow down. Scotland’s legal target to eradicate child poverty demands bold, accelerated action. Life is tougher than ever for many children and families and at Children First we witness this first-hand every day.

 “That’s why we urgently need a National Front Door that offers a simple accessible way for families to get the help they need when they need it.”

Children First’s manifesto for the 2026 Holyrood elections calls on the next Scottish Government to deliver a comprehensive offer of whole family support to tackle child poverty and give every family the emotional, practical and financial support they need.

Read the manifesto here: 2026 Holyrood Election Manifesto | Children First

Trussell’s Cara Hilton said: ‘While we welcome the @scotgov‘s £40 SCP rate for babies under 1, we continue to call for an increase to £40 a week for all.

‘Our @TrussellUK data shows food parcels for families with children aged 12-16 in Scotland rose by 7% over the past 5 years. #ScotBudget‘.

Responding to the Scottish Budget and Scottish Spending Review, Anna Fowlie, Scottish Council for Voluntary Organisations (SCVO) Chief Executive, said:   “Too often and for too long, voluntary organisations that provide vital services to people and communities across Scotland are treated as the poor relation to mainstream public services.

“They have had to contend with budget cuts, short-term funding cycles, late payments, incoherent decision-making, poor communication, inadequate grant management, and more. 

“Reform of the voluntary sector funding landscape is long overdue. The Scottish Spending Review is welcome, giving the Government the long-term outlook to make progress on its commitment to deliver improvements, including multi-year funding for Scotland’s voluntary organisations. 

“Welcome too is the Scottish Government’s commitment to multi-year funding for sections of the voluntary sector—this shows, again, what is possible.  

“Today we had hoped for more than a recommitment to the ‘first step’ announced last February—the Scottish Government’s ‘Fairer Funding’ pilot.

“We know the benefits of multi-year funding: better staffing, stability, and future planning for the services people and communities rely on. The Government’s own research confirms this.  

“Multi-year funding alone, however, will not provide the sustainable funding environment the voluntary sector so desperately needs, funding that is flexible, sustainable, and accessible.  

“We need to see real progress and recognition of SCVO’s Fair Funding asks beyond multi-year funding. Wider reforms are, unfortunately, now unlikely to be seen before  the next parliamentary term.

“In the meantime it is essential that in the weeks following the Scottish Budget the Scottish Government support local authorities and voluntary organisations by meeting their commitments to timely notifications and payments. 

“We look forward to further engagement on both Fair Funding and charity regulation in the next parliamentary term.”  

Shelter Scotland Director, Alison Watson said: “Social housing delivery in Scotland remains too slow, too little and too late for the more than 10,000 children homeless tonight. Today’s budget doesn’t do enough to change these facts.

“Shona Robison’s budget was an opportunity for Ministers to put their money where their mouth is. On the face of it an additional £34 million for social housing, compared to the most recent budget, is a step in the right direction – but it is not enough.

“The extra money will only deliver 36,000 affordable homes by 2030 – more than 26,000 short of where they say they would need to be to deliver their promise of 110,000 affordable homes by 2032.

“The new Parliament will need a new approach and new money to deliver the social homes needed to reduce homelessness. Homes that the government promised, that academics say we need but for which there is still no credible plan to deliver.

“We must be honest about the real costs of failure. Failing to build the social homes we need means rising homelessness, rising child poverty, rising costs for councils, health boards and the taxpayer.”

Responding to the Scottish Government’s Budget, Debbie Horne, Scotland Policy and Public Affairs Manager at Independent Age said: “It is disappointing to see nothing new in this Budget to adequately respond to the growing number of older people in poverty. 

“One in six pensioners now live in poverty across Scotland, a total of 160,000 older people, and we must see more action to support them.  

“We want the Scottish Government to set out a clear, targeted strategy to bring down the alarming number of older people in poverty, increase access to the vital Discretionary Housing Payments that can help older renters meet shortfalls in rent, and increase the social security support available to those on a low income in later life. 

“With pensioner poverty at its highest level in nearly 20 years, and likely to continue to rise as our population ages, it’s vital all political parties include measures to bring down the levels of poverty in later life in their manifestos’ ahead of May’s Holyrood elections. In a compassionate and wealthy society, we should all be able to live a financially secure, dignified later life.” 

Responding to the Scottish Government’s Budget statement which slashed the 40% discount on business rates bills for pubs at the same time as a rates revaluation will lead to higher bills from 1 April, Stuart McMahon, Director of pubgoers group CAMRA Scotland said: “Pubgoers and publicans simply won’t stand for a Budget which will force more of our locals to go to the wall by landing them with bills they simply can’t afford. 

“I fear that slashing the 40% discount on business rates bills for pubs to just 15% at the same time as these bills are increasing will be absolutely disastrous. 

“Transitional reliefs may sound good but if this Budget still means higher business rates bills than pubs are paying now then this will be the straw that breaks the camel’s back for many hard-pressed licensees.

“Pubs need permanently lower business rates bills so that they can survive, thrive and play their part as vital community hubs.” 

The Scottish Government’s budget announcement of further funding for the college sector, which includes a combined increase of £70 million in resource and capital funding, received a qualified welcome. Principal of Edinburgh College, Audrey Cumberford said: “While this is a welcome step in the right direction for college funding, there is still more that needs to be done.

“This increase will help to undo some of the damage done by years of real terms cuts, but more is needed if we are to ensure the future sustainability of our sector.

“There is now a clear consensus across the political spectrum for better funding for colleges.

“I would urge parties to continue to work together to make sure we unleash the true potential of our sector so we can continue to drive economic growth and improve the lives of Scots across the country.”

Responding to the Scottish government’s 2026-27 budget, announced today by Finance Secretary Shona Robison, RCEM Vice President for Scotland Dr Fiona Hunter said: “Scottish Emergency Departments are in the midst of a crisis born of political apathy towards tackling the difficult problems of social care capacity, delayed discharges and the overall issue of hospital flow.  

“Today’s budget indicates once again that the Scottish government understands what the issues are. £2.3bn extra for social care, an uplift in frontline NHS spending, specific targeted action on delayed discharge and local engagement – these are all measures we warmly welcome from the government.  

“As well as this, our members will be pleased to hear about improvements to training, retention and working conditions. 

“However, we’ve been here before. Time after time the reality in our A&Es has got worse, not better, despite claims from the government that the NHS has been on ‘the path to recovery’ in recent years.  

“We are seeing more and more patients waiting alone on trolleys in hospital corridors for hours on end, getting sicker and being put at risk of harm.  

“This has happened because exit block has not been tackled, despite promises to the contrary from the government. 

“The devil will be in the detail and I will reserve judgement for when myself, and the members I represent, see improvements in our Emergency Departments.   

“We look forward to continued engagement with the government on how it seeks to tackle hospital flow, and await further information on how the Health Secretary will take today’s promises and turn them into action and, ultimately, improvements for our patients.”

Jonathan Carr-West, Chief Executive, LGIU, said: “This Budget offers some short-term stability for councils, but it ducks the bigger questions about how local government is funded. 

There is still no meaningful move towards multi-year settlements, which councils overwhelmingly say they need in order to plan sustainably. Our annual State of Local Government Finance in Scotland research, launched last week, reinforces this.  

Incentivising a council tax freeze risks further undermining local fiscal autonomy, while adult social care remains the single biggest pressure on council finances without clear, dedicated funding. 

Housing investment is welcome, but spreading it across the country without enabling local flexibility limits its capacity to tackle the areas of greatest need. 

Overall, this is a Budget that manages immediate pressures but avoids the structural reform required to put local government finance on a sustainable footing.”

The Existing Homes Alliance (EHA) is a coalition of over 20 housing, environmental, fuel poverty, consumer and industry organisations calling for urgent action to transform Scotland’s existing housing stock.

Lori McElroy, Chair of the Existing Homes Alliance said: “While we welcome the ongoing support to help homeowners, landlords and tenants to make their homes warmer, healthier and more affordable to heat, this remains a drop in the ocean when we have over 800,000 households living in fuel poverty and 44% of Scotland’s homes falling below Energy Performance Certificate band C. 

“Scotland has excellent fuel poverty and energy efficiency programmes such as Warmer Homes Scotland, Area-based Schemes and the Social Housing Net Zero Heat Fund, as well as generous grants through the Home Energy Scotland Grant and Loan Scheme, but the gap between what is needed and what is currently being delivered is wide.

“This Budget, as it stands, is a missed opportunity to significantly scale up these programmes which would reduce fuel poverty, improve public health by tackling damp and mould, and prepare the workforce and supply chains needed to deliver our climate change targets – supporting thousands of jobs and economic opportunities across Scotland.”

Joanne Smith, Policy and Public Affairs Manager for NSPCC Scotland, said: “For children to thrive, it’s vital that they have the best start in life, and so we are heartened by the Scottish Government’s commitment to increase the Child Payment for under ones. But we are disappointed that young families now will not reap those benefits, with it starting in more than a year’s time.

“We also welcome the Scottish Government’s renewed investment in the whole family support fund and its work to continue to deliver the Promise. But it is so important that in this it recognises the fundamental need for support for very young children, just like the Scottish Child Payment does, so that families get the help they need right from the start.”

Scotland’s Chief Constable Jo Farrell has responded to the Scottish Government’s tax and spending plans for 2026 to 2027.

Chief Constable Farrell said: “I recognise a £90m cash-terms uplift to revenue funding and an improved capital allocation for policing against a challenging public finance picture.

“I set out the funding requirements for policing in evidence during the Criminal Justice Committee’s pre-budget scrutiny work.

“Police Scotland will continue to engage with the Scottish Police Authority and the Scottish Government to understand the full implications of the budget and develop our planning for the year ahead.

“My focus continues to be on prioritising our frontline to deliver safer communities, less crime, and supported victims as part of our vision for policing.”

COSLA: Budget Reality

26-01-13 Budget Reality 26-27 FINALDownload

Reeves Budget ‘tackles cost-of-living and backs Scottish industry’

Scottish families will benefit from a Budget to cut the cost-of-living, create more high skilled jobs and invest in public services, as the Chancellor reaffirmed her commitment to drive economic growth.

  • Chancellor announces fair deal for working families with removal of two-child benefit cap, energy bill saving and fuel duty freeze 
  • Scottish industry backed by investments in Grangemouth, Greenock, Leith and Fife 
  • Public services backed with extra £820 million for Scottish Government

Rachel Reeves recognised Scotland’s huge £204 billion annual contribution to the UK economy with investments in Grangemouth, Greenock, Leith and Kirkcaldy, and provided long-term certainty to the oil and gas industry to support North Sea jobs and investment. 

Despite wages growing more in the first year of this government than at any point in the 2010s, the Chancellor was clear too many families are still struggling with the cost of living which is why the Budget included a range of measures to cut bills and boost pay packets.   

Saying that the fairest way to help people with the cost-of-living was to cut inflation and increase wages, Reeves announced £150 off energy bills, a fuel duty freeze, and national minimum and living wage rises. 

The Chancellor announced the removal of the two-child limit. 95,000 children in Scotland will benefit from this change. Funded by tackling welfare fraud and long-overdue reforms to the Motability scheme, it will result in the biggest reduction in child poverty at any Budget this century.

The Chancellor’s Budget also ensured that Scottish public services are fairly-funded, with an extra £820 million for public services in Scotland through the Barnett Formula, on top of a record settlement in June.

Secretary of State for Scotland, Douglas Alexander MP said: “This is a Budget which delivers for Scotland – raising children out of poverty and helping tackle the cost of living for working families with action on energy bills.

“Scrapping the two-child benefit cap will lift thousands of Scottish children out of poverty. Funded by raising online gambling taxes and tackling welfare fraud, it will result in the biggest reduction in child poverty at any Budget this century.

“The UK Government has backed Scotland’s public services with an extra £820 million — on top of the extra annual £9.1 billion already committed at the Spending Review.

“The £14.5 million announced for Grangemouth is also vital investment in Scotland.”

Ms Reeves also announced reforms to modernise the tax system, asking those with broader shoulders to contribute more through long-overdue fair reforms.

Backing Scottish industry 

  • £14.5 million will back Grangemouth’s transition to a hub for low carbon technologies as the UK Government cements Scotland’s place as the home of the UK’s clean energy revolution. 
  • A further £20 million for Inchgreen near Greenock will upgrade the port’s dry dock, creating up to 1,750 jobs.  
  • Up to £20 million will transform Kirkcaldy town centre and waterfront, including the creation of ‘Adam Smith Growth Works’, boosting local business and tourism.
  • £25 million will be released following the full sign-off of Forth Green Freeport – spanning Leith, Grangemouth and Fife.
  • To support oil and gas workers, the UK Government is introducing ‘Transitional Energy Certificates’ to manage existing North Sea fields for the entirety of their lifespan, and a new Jobs Brokerage Service – offering end-to-end career transition support.

Tackling child poverty, the cost-of-living and economic inactivity

  • 95,000 children in Scotland will benefit from the removal of the two-child limit. 
  • Raising the National Living Wage by 4.1% and the National Minimum Wage by 8.5% —building on April 2025 increases to the National Living Wage and National Minimum Wage that already directly benefitted 220,000 workers in Scotland. 
  • Uprating Universal Credit Standard Allowance by 6.1%, the first ever permanent real terms increase.
  • Increasing the State Pension by 4.8% from April 2026, directly raising incomes for 1.1 million pensioners in Scotland. 
  • Extending the fuel duty freeze and 5p cut, saving the average car driver £49 next year. 
  • Unleashing talent and opportunity with a Youth Guarantee package. This will include ensuring every eligible 18-to-21-year-old who has been on Universal Credit and looking for work for 18 months in Great Britain will get a six-month paid work placement.

Public services investment 

  • The Budget provides an extra £820 million for the Scottish Government to spend on its priorities such as education and tackling NHS waiting times— on top of the extra £9.1 billion already committed during the Spending Review.   
  • The Scottish Government continues to receive over 20% more funding per person than equivalent UK Government spending across the rest of the UK reflecting the real costs of delivering services across Scotland’s diverse geography, from the Highlands to the central belt.

Holyrood: ‘Chaotic’ UK Budget fails to deliver for Scotland

Finance Secretary responds to Chancellor’s statement

The UK Budget “fails to deliver” for Scotland and will not move the dial on the cost of living for squeezed households, according to Holyrood’s Finance Secretary Shona Robison.

Responding to the Chancellor of the Exchequer’s statement, Ms Robison said: “This Budget has been absolute chaos from start to finish. Westminster has been consumed with leaks, briefings and out and out incompetence – with Scotland left as an afterthought and families left to pay the price.

“We needed a step change from the UK Government with investment in public services, support for jobs and industry in Scotland and serious action on energy bills. Instead, we got a chaotic mess and the increase in funding for the Scottish Government will not even cover half the cost of the employer’s national insurance contributions brought in this year.

“With UK energy bills £340 higher than the Prime Minister promised even after today’s announcement, the UK Government are not even trying to deliver on the their promises. It is insulting to see the UK Government stand up and trumpet a proposed reduction that does not even cover the increase since they came to office.

“It does not come close to meeting the Prime Minister’s pledge on energy bills – they have not even attempted to keep their promises.

“The electric vehicle tax is the wrong decision for motorists, the climate and for Scotland given its disproportionate impact on rural drivers.

“And there is no serious support for jobs and industry in Scotland. The Energy Profits Levy is to remain in place – risking thousands of jobs in Scotland and in the North East in particular. Yet again, Scotland is an afterthought.

“And while the moves on the two child cap are welcome, they are long overdue and the UK Government has been forced into this position by the Scottish Government and other campaigners. And without a simultaneous change to the benefit cap it falls well short of the bold anti-poverty measures we have been calling for from the UK Government.

“But the complete chaos around this Budget gets to the heart of the fact that we should not be leaving crucial decisions around the economy, public finances and household bills in the hands of a deeply incompetent Westminster UK government.  We should take these decisions for ourselves with the fresh start of independence.” 

The impact of the increase Employers National Insurance contributions on public services is forecast to cost the Scottish Government at least £2 billion over the next five years.

Responding to the UK Government’s Budget, Poverty Alliance Chief Executive Peter Kelly said: “The Chancellor’s decision to fully scrap the unjust two-child limit is the right thing to do.

“For eight years, this cruel policy has severed the link between what families across the country need and the support they are entitled to, pushing children into poverty and limiting their potential. Our children deserve better.

“Campaigners across Scotland have been unified in their demand to scrap the two-child limit and we are pleased that the UK Government has listened, sending a strong message that every child in this country matters. The end of this policy must be the starting point of reform which ensures that our social security system truly provides security.

“This decision also frees up money earmarked for the mitigation of the policy in the Scottish Budget. Coupled with the additional £820 million allocated to the Scottish Government in this UK Budget, this will allow further investment in the action we know is needed to meet our child poverty targets, including increases to the Scottish Child Payment.”

Commenting on the UK Government’s Budget response, Debbie Horne, Scotland Policy and Public Affairs Manager for Independent Age said: “The Autumn Budget was an opportunity to address pensioner poverty across the UK. However, the UK Government has sadly missed the chance to take action on an issue that now affects almost two million older people across the UK, including 160,000 pensioners in Scotland. 

“While we welcome the retention of the Triple Lock, this measure alone does not go far enough for older people on the lowest incomes who are living across Scotland in cold homes and with not enough money to live on. 

“We continue to call on the UK Government to increase the Warm Home Discount to ease the burden of escalating bills, to support older private renters by uprating Local Housing Allowance so no one has to make dangerous sacrifices to pay their rent, and to boost income through a comprehensive take-up strategy for entitlements, including Pension Credit. 

“The absence of meaningful action to address later-life poverty will leave many older people on a low income in Scotland feeling forgotten and many will be worried about losing more of it in tax, because of the extension of the freeze on personal tax allowances to 2031, a year longer than was expected. 

“We estimate that without decisive government intervention almost 190,000 pensioners in Scotland could be in poverty by 2040. Worryingly, nothing in this Budget suggests we are being steered away from this frightening outcome.” 

Mary Glasgow, Chief Executive of Children First, Scotland’s national children’s charity said: “We welcome the UK Government’s decision to scrap the two-child limit as outlined in the Office for Budget Responsibility report. This is long overdue and frees up Scottish Government budget for other crucial support for children and families.  

“Poverty has a devastating impact on children’s mental and physical health, development, happiness and ability to learn that can last a lifetime.   

“Both governments must now work together to build on progress and meet the legal target to reduce child poverty in Scotland. Families need a stronger social security offer, for example, through the Scottish Child Payment and whole family support across Scotland to give every family the financial, practical and emotional help they need to tackle the root causes of poverty.  

“Children can’t wait. The Scottish Government must use this opportunity to go further and faster in their stated mission to eradicate child poverty.”  

Children First’s manifesto for the 2026 Holyrood elections calls on the next Scottish Government to deliver a comprehensive offer of whole family support to tackle child poverty and give every family the emotional, practical and financial support they need. 

Read the manifesto here: 2026 Holyrood Election Manifesto | Children First 

Helen Barnard, director of policy at Trussell, said: “Trussell is delighted to see the Chancellor take this bold step which will protect hundreds of thousands of children from growing up facing hunger and hardship. She has listened to the families and food banks across the UK who have been imploring her to act.

“The cruel two-child limit has driven countless families into hardship, forced to turn to food banks to survive. Today’s announcement of its full and swift removal will help ensure all our children have the best possible start in life, ease pressure on public services, and help to boost our economy.  

“This government came to power promising to end the need for emergency food and reduce child poverty. Removing the two-child limit will make a vital and significant contribution towards delivering on those manifesto commitments.

“This move will pull 470,000 children out of severe hunger and hardship by 2027 and ease pressure on food banks throughout the UK.

“The government has built on positive steps in strengthening support for people facing severe hunger and hardship. But this cannot be the end. Food bank need remains well above levels five years ago and many people are still struggling to afford the essentials.

“We need more bold choices to transform lives across our communities.”

The End Child Poverty Coalition commented:

Letters: Urgent action needed to support older Scots

Dear Editor,

Our charity recently released a new Index into the financial wellbeing of older Scots. Across the country, the results were stark, and closer to home they reveal the tough choices many in later life in the Lothian region are being forced to make.

Our data has shown that, shockingly, in the region, 22% of older people have skipped meals in the last year. Just 20% say that the State Pension is enough to cover basic living expenses.

The Scottish Government recently put forward its Programme for Government, and again, despite rising levels of pensioner poverty, there was no proposed plan to tackle this.  

At Independent Age, we know urgent action is needed. A pensioner poverty strategy should include a Pension Credit awareness campaign, which is a vital source of support for older people on a low income that a significant number in the region – 18% – do not even know about.

The results of our Index show the unacceptable financial difficulties many older people in the Lothian are experiencing. This must change. Both the UK and Scottish Government must act.

Debbie Horne

Scotland Policy and Public Affairs Manager at Independent Age

Independent Age is a national charity supporting older people facing financial hardship. You can access advice on money, housing, health and care at independentage.org or through a free helpline on 0800 319 6789.

Programme for Government: ‘Building the best future for Scotland’

Poverty Alliance: ‘People in Scotland are demanding better’

The NHS will deliver 100,000 additional GP appointments and Scotland will have a ‘best in UK’ cost-of-living guarantee, including the permanent abolition of peak rail fares, First Minister John Swinney announced as he set out a Programme for Government against a backdrop of global economic challenges. 

Speaking one year since he was elected First Minister and one year before the end of this Parliament, Mr Swinney committed to a package of cost-of-living initiatives for households and businesses and a new Six Point Export Plan to unlock target markets.

He set out plans to strengthen the NHS with the delivery of extra GP appointments for key health risks such as high blood pressure, and 150,000 more NHS appointments and procedures, including a 50% increase in surgical procedures such as hip and knee replacements.  

Key announcements include:   

  • 100,000 enhanced service GP appointments by March 2026 for key risk factors including high blood pressure, high cholesterol, high blood sugar, obesity and smoking as well as more than 150,000 extra appointments and procedures, including surgeries and diagnostic tests, and target cancer pathways to tackle backlogs against the 62-day referral to treatment standard 
  • The cost-of-living guarantee which includes ongoing free prescriptions, eye exams, bus travel for 2.3 million people, free tuition for students and more than £6,000 in early learning and childcare support for each eligible child 
  • ScotRail peak rail fares abolished and the general alcohol ban on ScotRail trains removed and replaced with time and location restrictions 
  • Winter fuel payments for pensioners restored 
  • A new Six Point Export Plan, with a focus on actions to unlock target markets, and showcase Scotland to global buyers 
  • A national regeneration fund that will support at least 26 projects to renew and restore communities, with a focus on delivering more local jobs 
  • More rights and stronger protections for tenants, helping deliver more than 8,000 affordable homes, including for social and mid-market rent, and removing barriers on stalled building sites with the potential to deliver up to 20,000 new homes 

The First Minister said: “This Programme for Government is focused on providing the best cost-of-living support across the UK, as well as delivering a renewed and stronger NHS.   

 “When I became First Minister a year ago, I heard loud and clear people’s concerns about the NHS which is why I am taking serious action to ensure the NHS meets the needs of the public.  

“This PfG also shows decisive action to protect Scotland’s economy and maximise our economic potential in the face of global challenges.   

 “It is being published earlier than usual, in part because it allows a clear year of delivery on the NHS and other public services, but also due to the scale of the looming economic challenge.    

 “It is a programme for a better Scotland, for a stronger NHS and a more resilient and wealthier Scotland. It is a Programme for Government that gets our nation on track for success.”

POVERTY ALLIANCE: Government programme misses need for fundamental change

Commenting on the Programme for Government, Poverty Alliance chief executive Peter Kelly said: “Many of today’s announcements are welcome, but the package doesn’t go far enough towards creating a just and compassionate Scotland where people have what they need to build a life beyond poverty.

“More and more people in Scotland believe the system is rigged against them and their families. And they’re right.

“Scrapping peak rail fares for good will help many people on low incomes, but many, many more are still being left with unaffordable buses that don’t meet their needs.

“It’s welcome that this programme turns its back on previous cuts to affordable homes, but we urgently need more investment to create a social housing programme that will bring the scandal of child homelessness to an end.

“Reversing the effect of the unjust two-child limit for households in Scotland is the right thing to do, but there was no sign of a pledge to raise the Scottish Child Payment – never mind raising it to the £40 a week that we know is needed to meet our legal child poverty targets.

“And it was good to hear the First Minister talking about sharing Scotland’s growing wealth more fairly, but the Government simply can’t do that without using its powers over investment and taxation.

“People in Scotland are demanding better, and they want a Scottish Govt that will make the big, fundamental changes that will empower households to build a better life for themselves and a better future for all of us.”

STUC: Scrapping peak fares is a victory for workers in Scotland

Commenting on the scrapping of peak rail fares within the Scottish Government’s Programme for Government, STUC Deputy General Secretary Dave Moxham said: “This is deeply welcome news that, whilst long overdue, shows the strength of campaigners and rail unions in demanding an affordable and accessible rail network that is fit for the future.

“This is a clear victory for workers in Scotland and it’s commendable the Scottish Government has listened to the voices of our movement – and listened to their own evidence – which showed the positive impact of scrapping peak fares.

“Peak fares were, simply put, a tax on workers that hit commuters directly in the pocket. We can now ensure we build an interconnected, cheaper and greener rail networks that puts people before profit and puts peak fares out of commission for good.”

Children First: First Minister missed another chance by not increasing Scottish child payment

Children First statement on Scottish Government Programme for Government

Mary Glasgow, chief executive of Children first, said: “We hoped the First Minister would bring bold, ambitious plans to tackle the crippling levels of child poverty in Scotland. Instead, the Programme for Government, while well-intentioned, lacked real action. The First Minister missed another chance to help families by not increasing the Scottish Child Payment to £40.

“While we recognise the Scottish Government’s commitment to eradicating child poverty, supporting whole families and improving mental health support for young people, we are deeply concerned that it lacks urgency and the necessary financial resources and policy ambition.

“Scotland is facing a childhood emergency. The children and families we support cannot wait another 12 months for yet another fresh approach.

“They need action now.”

ALBA Party: Scotland “won’t accept” the Scottish Government’s decision to omit independence from its Programme for Government, says Ash Regan

For the second year in a row First Minister John Swinney has failed to mention independence in his Programme for Government with the document not setting out any plans to give Scots a choice on their future in the remainder of the current Parliament. 

The SNP were re-elected in 2021 promising a referendum would be held during the life of the current Parliament but after the Supreme Court ruled against the Scottish Parliament’s ability to do so the Scottish Government have taken no action to find a path to giving the people of Scotland a choice on their future. 

Alba’s Ash Regan wanted to see First Minister John Swinney set out the actions his Government will take to advance the case for Scottish independence in the run up to next year’s Scottish Parliament elections. But she has hit out as the Government has confirmed today that the only action it will take in the next year will be the publication of another independence paper. 

The Alba MSP says that the Scottish Government’s plan for how it intends to progress the case for Scottish independence should have featured “front and centre” of John Swinney’s plans and the failure to do so is a “missed opportunity.” 

Last year, in his first ever PfG as First Minister, John Swinney did not make reference to independence when he addressed parliament and in his speech today he again failed to reference any actions his Government would take to help deliver independence. 

Commenting Alba Party Holyrood leader Ash Regan MSP said: “Last year the word ‘independence’ was not mentioned once in the Programme for Government statement to Parliament. Since then we have witnessed consistent polling showing that at least half the country favour independence. 

“The failure to put independence front and centre of today’s Programme for Government is a wasted opportunity. The people of Scotland are now ahead of the SNP when it’s comes to independence and that is why we have seen a separation of support for independence and support for the SNP. 

“Scots want to see a drive towards governing competently again and focus to be put back onto the people’s agenda of health, the economy, jobs and the protection of women and children.

“The case for independence has never been stronger, it is now vital we see support for Alba Party on the list to ensure the SNP don’t see out another term of Parliament without taking action on independence.”

RCEM: Scotland’s Programme for Government a ‘missed opportunity’ to tackle UEC crisis

After enduring another challenging winter, Scotland’s Programme for Government has failed to deliver a tangible plan to address the emergency care crisis. That’s the response from the Royal College of Emergency Medicine after the First Minister, John Swinney, delivered a speech today (6 May 2025) which laid out his government’s key pledges for the final year of the Scottish Parliament’s current term.  

Relating to the NHS, the First Minister’s key pledges were: 

  • Reducing time patients wait for treatment by delivering more than 150,000 extra appointments and procedures, including surgeries and diagnostic tests.
  • Ensuring more people can see their GP and get cared for in the community – reducing pressures in hospitals
  • Ensuring more people can be cared for at home, reducing pressures in hospitals by expanding the number of Hospital at Home beds to at least 2,000 by December 2026. 

Mr Swinney’s speech coincided with the release of new data by Public Health Scotland which revealed in March, there was an average of 1,925 people waiting to be discharged from hospital, despite being deemed medically well enough to go home.  

That’s the highest number of so called ‘delayed discharges’ for the month of March since guidelines changed in 2016.  

This is often caused due to a lack of social care support. Therefore, the system grinds to a halt, with patients stuck in Emergency Departments, often on trolleys in corridors, facing extreme waits because there’s no in-patient beds available.  

Today’s figures, which cover March 2025, also show:  

  • 120,143 people attended a major Emergency Department in Scotland – a 17.7% increase when compared to February. 
  • One in three patients waited four hours or more in Emergency Departments, one in 9 waited eight hours or more, and one in 23 waited 12 hours or more. 
  • While waits have slightly improved across the board when compared to February, they are significantly higher when compared to March 2018. The numbers waiting four hours or more has increased by 158%, the numbers waiting more than eight hours by 490%, and the numbers waiting more than 12 hours by 803%. 
  • There was a total of 60,129 days spent in hospital by people whose discharge was delayed – a 2.5% increase compared to March 2024 (58,646).  

The data comes after Scotland’s Emergency Departments also experienced the worst February on record for performance. 

Dr Fiona Hunter, Vice President of RCEM Scotland said, “Today’s Programme for Government is a missed opportunity. It was a moment to resuscitate emergency care but instead, we have been left without a tangible plan.

“You just have to simply look at today’s figures from Public Health Scotland to see the level of pressure our Emergency Departments our under – thousands of people waiting extreme and dangerous long stays, often on trolleys, in corridors, because there are no available beds on wards for them to move to.  

“And let’s be clear – these aren’t just numbers, data, statistics. Each is a loved family member – mums, dads, grandparents, sons, daughters.   

“While we welcome the government’s commitment to improving access to GPs, this can’t be done in isolation. Equal attention is needed at the ‘back door’ of hospitals – ensuring patients who are well enough to be discharged, can be, with the appropriate social care in place. 

“Only then will our patients be able to move as they should throughout the hospital system, rather than experiencing significant delays.  

“Our members and their colleagues will be deeply disappointed after enduring another challenging winter. It’s left us asking, when will Emergency Care become a political priority?” 

Greens hail peak rail fares U-turn and call for cheaper buses

The Scottish Greens have welcomed the Scottish Government’s decision to finally take forward the Green policy of scrapping peak rail fares for good, and have called for action to make public transport cheaper across the board.

The policy was initially secured by the Scottish Greens through budget negotiations in 2023 before being dropped by the SNP in 2024. 

In the 2025 budget the Greens secured a £2 bus fare cap that the Government has committed to rolling out as a regional pilot project by January 2026.

Speaking in the Scottish Government’s Programme for Government 2025-26 debate today at Holyrood, the party’s co-leader, Lorna Slater, said: “I am delighted that the Government has finally committed to the Scottish Green policy of ending peak rail fares for good. 

“Earlier this year, they said they wouldn’t do it. They even voted against Green calls to do it. We’ve finally got there.

“More brave decisions are needed to make all public transport cheaper. 

“The Scottish Government agreed to Green proposals for a £2 bus cap, only as a local pilot from January 2026, but people all across Scotland need cheaper buses now. 

“Will the First Minister avoid the hesitation he showed over peak rail fares, get on with delivering another great Green idea: capping the price of bus fares in Scotland for good?”

Independent Age: No New Support for Older People in Poverty

Debbie Horne, Scotland Policy and Public Affairs Manager at Independent Age said: “Today’s Programme for Government announced no new support for older people in poverty.

“Making sure every pensioner in Scotland receives some winter heating support is very welcome, particularly for older people on lower incomes. However, there is more the Scottish Government should do to reduce the growing number of pensioners in poverty.  

“With 156,000 older people across Scotland currently living in poverty – an increase of 30% the last decade – the need for a clear strategy to address this is more urgent that ever. Our polling shows that people of all ages in Scotland agree that a strategy to reduce pensioner poverty should be created – with 9 in 10 supporting the idea.  Without one, people facing financial hardship in later life will continue to struggle to maintain even the most basic quality of life. 

“Poverty at any age is extremely damaging to both mental and physical wellbeing. Our 2025 Index showed that nearly one in five (19%) older people in Scotland have a household income of under £15,000 a year and almost one in three (29%) older people in Scotland have skipped meals in the last 12 months.  

“In a compassionate and wealthy society, this shouldn’t be the case. Both the UK and Scottish Governments need to take action. If the Scottish Government wants to make Scotland the best place to grow old and tackle the injustice of pensioner poverty it is essential they have a plan for doing so.”