“It is time for the Scottish Government to stop walking and start running”
The Scottish Government must take urgent action to avoid missing its own child poverty targets by a significant margin, leaving families across the country locked in poverty. The cut to Universal Credit by the UK Government in just two days’ time makes the task more urgent.
Kicking off Challenge Poverty Week with its annual state of the nation report, Poverty in Scotland 2021, the Joseph Rowntree Foundation (JRF) paints a picture of poverty levels in Scotland just before the Covid-19 pandemic.
It highlights a failure to make inroads into the significant levels of poverty among the priority groups for action as identified by the Scottish Government, including families from an ethnic minority background, families where someone is disabled, those with a child under the age of one and single parent households.
Key findings for these groups include:
More than 80% of children in poverty are in one of these groups.
100,000 children in poverty in live in a household where someone is disabled – a shocking 40% of all children in poverty
Children from minority ethnic backgrounds make up 7% of the population yet make up 16% of all children in poverty
Children in two or more priority groups have a much higher poverty rate (36%) than those in one priority group (25%) and nearly three times that of those in no priority group (13%).
These figures are pre-Covid 19, and much evidence has highlighted the unequal impact the pandemic has had on many of these groups, meaning their current situations could be much worse. This lays bare scale of the challenge facing the Scottish Government if it is to meet its targets and makes clear the need for targeted action to support these groups.
The report was produced alongside the End Poverty Scotland Group, an advisory group of people from across Scotland with first-hand experience of living on a low income.
Alex, a member of the advisory group said: ‘If over 80% of children in poverty are still in one of the priority groups, how much of a priority are we, really?’
The findings also highlight the importance of full-time work in reducing poverty in Scotland. 54% of people who are in families where no one is working are in poverty. People in families where someone is working part-time have a poverty rate of 30% while the poverty rate for people in families where at least one person is in full-time work is 10%.
The desire and need to work was a strong theme from the advisory group, but the inflexibility of childcare provision was highlighted as a consistent barrier. The group expressed deep frustration that in most cases people were trying to create a better life for them and their families, but success was often despite the system rather than because of it.
The report urges both the Scottish and UK Governments to increase the adequacy of social security in order to drive down poverty levels.
JRF recommends that the Scottish Child Payment is doubled as soon as possible and that the upcoming Tackling Child Poverty Delivery Plan must set out a clear and measurable course towards meeting those targets. It must include a far greater scale and pace of activity to support families in the priority groups who are most at risk of poverty.
The UK Government’s cut to Universal Credit and Working Tax credit in just two days’ time will cut £1,040 per year from the incomes of 450,000 families in Scotland. This cut will increase poverty in Scotland across all groups, not just families with children.
The UK Government is responsible for 85% of social security spending in Scotland and the responsibility for the impact of this cut lies at their door. As well as reversing the cut, the report recommends reform of rules such as the five-week wait for the first payment of Universal Credit, and the two-child limit, which drive destitution and hardship in Scotland as they do in other parts of the UK.
Chris Birt, Associate Director of JRF in Scotland said: “The Scottish Government has rightly set a national mission to end child poverty and has put in place steps to move us in the right direction. But we are on course to miss our targets by some distance. Such a political failure would have a profound human cost – tens of thousands more children will experience childhoods blighted by hardship and anxiety.
“It is time for the Scottish Government to stop walking and start running, by immediately doubling the Scottish Child Payment and by significantly increasing the scale and pace of its programme to support families in priority groups. The forthcoming Budget and Tackling Child Poverty Delivery Plan will be crucial in putting us on a path to meeting our targets.
“All tiers of government must look at the design and cultures that underpin public services. The group of people on low incomes who co-authored the report are clear in the need for a more constructive approach underpinned by kindness and ease of use as well as more accountability to the people who use the systems.
“The responsibility for the cut to Universal Credit falls squarely at the UK Government’s door. It is a failure of both compassion and of policy. Its decision to impose the biggest overnight cut to social security in the history of our welfare state will cause immediate and widespread hardship in Scotland. With reserved powers, comes reserved responsibility.
“Our social security system should protect people from poverty, but the UK Government is instead choosing to condemn them to it.”
Joseph Rowntree Foundation issues a stark warning ahead of the cut to Universal Credit scheduled for 6 October – the same day as the Prime Minister’s speech at Conservative Party Conference.
New analysis looks at the impact of the Universal Credit cut by local authority.
On Wednesday, as the Prime Minister delivers his speech to the Conservative Party Conference, his government will be imposing the biggest ever overnight cut to social security. This will reduce the incomes of around 5.5 million families by £1,040 per year.
In the Greater Manchester Combined Authority area – the host city of this year’s Conservative Party Conference – around 312,000 working-age families (26%) are facing this historic cut to Universal Credit and Working Tax Credit.
If the Government presses ahead with the cut, it would:
Pull half a million people into poverty, including 200,000 children.
Fundamentally undermine the adequacy of our social security system at precisely the moment when families are facing considerable increases in the cost of their energy bills, prices on the shelves are going up and National Insurance is set to rise in April 2022.
Reduce the main rate of out-of-work support down to its lowest level in real terms since around 1990 and its lowest ever level as a proportion of average earnings.
The Government themselves have admitted this week that families may struggle to meet basic costs, like food and heating, by increasing the funding available for local authorities to give grants to families in emergency situations.
The support available through their newly announced Household Support Fund is temporary and discretionary and is typically reserved for one-off emergency situations such as a broken fridge. This scheme does not come close to meeting the scale of the challenge facing families.
Who will be impacted by the cut?
New analysis finds that in 35 local authorities across Great Britain 50% or more of working-age families with children will be impacted by the planned cut.
JRF has consistently warned that:
Working families make up around 60% of families who will be affected by the cut to Universal Credit and Working Tax Credit.
Families with children (particularly single-parent families), those containing someone who is disabled, and Black, Asian or Minority Ethnic (‘BAME’) families, will be disproportionately impacted by the reduction in Universal Credit or Working Tax Credit.
The cut will have the most severe impact in Yorkshire and the Humber, the North East, North West and West Midlands, although no region will be left unscathed by this decision.
Katie Schmuecker, Deputy Director of Policy & Partnerships at the Joseph Rowntree Foundation, said:“The Prime Minister is abandoning millions to hunger and hardship with his eyes wide open. The biggest ever overnight cut to social security flies in the face of the Government’s mission to unite and level up our country.
“When the increase to Universal Credit was introduced, the Chancellor said it was to “strengthen the safety net” – a tacit admission a decade of cuts and freezes had left our social security lifeline to wear thin and threadbare for families in and out of work relying on it. This planned cut would reverse the progress made and leave it wholly inadequate.
“People’s bills won’t get £87-a-month cheaper from Wednesday and families are already anxious about how they will get through a looming cost of living crisis. This decision is set to plunge half a million people into poverty and shows a total disregard for the consequences. The Prime Minister cannot say he has not been warned, he must abandon this cut.”
Table 1: Top 10 Labour and Conservative majority local authorities with the highest percentage of working-age families with children impacted by the cut
Top 10 Labour majority local authorities affected
Top 10 Conservative majority local authorities affected
Local Authority
% of all working-age families with children impacted by the cut
Local Authority
% of all working-age families with children impacted by the cut
Newham
64
Pendle
58
Leicester
62
Walsall
53
Manchester
61
Great Yarmouth
52
Bradford
61
North East Lincolnshire
50
Oldham
60
Southampton
49
Birmingham
60
East Lindsey
48
Blackburn with Darwen
58
Dover
45
Kingston upon Hull – City of
58
North Lincolnshire
44
Sandwell
58
South Holland
44
Tower Hamlets
58
Nuneaton and Bedworth
44
Of local authorities with no majority party, with the highest percentages of working-age families with children impacted by the planned cut, Middlesbrough (60%) and Burnley (58%) are both coalition-led councils. Blackpool (57%) is Labour minority and Thanet (55%), Peterborough (55%) and Stoke-on-Trent (55%) are all Conservative minority.
Table 2: Families impacted by £20-per-week reduction to UC/WTC in October 2021
Family type
Families on UC or WTC losing £20 per week in October 2021
Number of families (millions)
Proportion of families who lose
% of all working-age families of that type who lose
All working-age families
5.5
100%
20%
Families with someone in work
3.5
64%
16%
Families without someone in work
2.0
36%
33%
Single without children
2.3
42%
18%
Couples without children
0.6
10%
8%
Single-parent families
1.1
20%
61%
Couple-parent families
1.5
28%
25%
Families where someone is disabled
2.8
50%
35%
Families where no one is disabled
2.7
50%
14%
BAME families
1.1
20%
25%
Non-BAME families
4.4
80%
19%
Source: Microsimulation by JRF using the IPPR Tax and Benefits Microsimulation Model and the OBR’s March 2021 forecasts. Breakdowns may not sum to totals due to rounding.
Making this decision with his eyes wide open:
The cut is opposed by six former Conservative Work & Pensions Secretaries, the Northern Research Group of Conservative MPs, the One Nation Group of Conservative MPs, all the devolved administrations, numerous cross-party committees in all nations of the UK. Iain Duncan Smith recently said, “the extra £20 has returned to UC some of the investment that was cut from my original design.”
100 organisations are urging the Prime Minister not to cut Universal Credit. Among the signatories of the joint open letter to the Prime Minister are leading voices on health, education, children, housing, poverty, the economy and other aspects of public policy. (published 2 September)
A lower-income couple with two young children where one adult is working full-time is going to need to find an additional £31-a-week to cover the cost of living and falling benefit rates from October, according to new analysis by the Joseph Rowntree Foundation.
In an interviewyesterday, the Business Secretary warned “it could be a very difficult winter”. This comes amid growing concern across the political spectrum that the rising cost of living is about to put immense strain on low-income families.
If the Government proceeds with cut to Universal Credit as planned, changes to the energy price caps, and inflation means that at the same time this couple family are trying to compensate for the £20-a-week they had before the cut, they will soon need to find an additional:
£3 for energy (assuming pre-payment meter)
£8 for other living costs
= an additional £11 per week from October.
On top of this, the same family would need to find an extra £2.50 to cover the increase in National Insurance Contributions from April 2022 because of the Health and Social Care levy.
This would mean in total this family may need to find an additional £13.50 per week or £710 per year (around the entire clothing and footwear annual budget for this kind of family) as well as losing £20 a week from Universal Credit. For this family, the extra costs alone equate to around 3.5% of their weekly disposable income.
Peter Matejic, Deputy Director of Evidence & Impact at the Joseph Rowntree Foundation, said:“Millions of low-income families are incredibly anxious about how on earth they are supposed to make ends meet from next month.
“Ministers rightly recognise this is shaping up to be a very difficult winter, yet there is little sign of them taking the decisive steps that are necessary to avoid real hardship for low-income families.
“The growing concern about the cost of living reinforces why cutting Universal Credit makes absolutely no sense. Social security is a key defence in protecting families from precisely these sorts of economic shocks, but the Government is on course to impose the biggest ever overnight cut to the system and leave families with an inadequate lifeline.
“The Prime Minister urgently needs to keep the £20-a-week increase to Universal Credit in place. Rising child poverty, soaring demand for food banks, people worrying about keeping their homes and covering the cost of bills, flies in the face of uniting and levelling up our country.”
Prime Minister Boris Johnson is reshuffling his Cabinet.
Education Secretary Gavin Williamson has been sacked and former Foreign Secretary Domic Raab has paid the price for his role in the Afghanistan withdrawal debacle. Raab is replaced by Liz Truss, while Nadhim Zahawi is also promoted – he takes over at Education.
Robert Jenrick (Housing and Communities) and Robert Buckland (Lord Advocate and Secretary of State for Justice) have left the government.
Further junior ministerial appointments will be announced today, but changes so far (marked with an asterisk) are as follows:
Prime Minister, First Lord of the Treasury, Minister for the Civil Service, and Minister for the Union
Rt Hon Boris Johnson MP
HM Treasury
Chancellor of the Exchequer – Rt Hon Rishi Sunak MP
Chief Secretary to the Treasury – Simon Clarke MP
Foreign, Commonwealth and Development Offic8e
Secretary of State for Foreign, Commonwealth and Development Affairs, and Minister for Women and Equalities – Rt Hon Elizabeth Truss MP *
Minister of State in the Foreign, Commonwealth and Development Office – Rt Hon Amanda Milling MP
Minister of State at the Ministry of Housing, Communities and Local Government, jointly with the Foreign, Commonwealth and Development Office (Minister for Equalities) – Kemi Badenoch MP
Home Office
Secretary of State for the Home Department – Rt Hon Priti Patel MP
Minister of State – Kit Malthouse MP (jointly with the Ministry of Justice)
Cabinet Office
Chancellor of the Duchy of Lancaster and Minister for the Cabinet Office – Rt Hon Stephen Barclay MP
Minister of State – The Rt Hon Lord Frost CMG
COP26 President – Rt Hon Alok Sharma MP
Minister without Portfolio – Rt Hon Oliver Dowden CBE MP *
Minister of State – Nigel Adams MP
Ministry of Justice
Deputy Prime Minister, Lord Chancellor, and Secretary of State for Justice – Rt Hon Dominic Raab MP *
Minister of State – Kit Malthouse MP (jointly with the Home Office)
Ministry of Defence
Secretary of State for Defence – Rt Hon Ben Wallace MP
Department for International Trade
Secretary of State for International Trade, and President of the Board of Trade – Rt Hon Anne-Marie Trevelyan MP
Department of Health and Social Care
Secretary of State for Health and Social Care – The Rt Hon Sajid Javid
Department for Work and Pensions
Secretary of State for Work and Pensions – Rt Hon Dr Thérèse Coffey MP
Department for Business, Energy and Industrial Strategy
Secretary of State for Business, Energy and Industrial Strategy – Rt Hon Kwasi Kwarteng MP
Minister of State at the Department for Business, Energy and Industrial Strategy – Rt Hon Greg Hands MP
Ministry of Housing, Communities and Local Government
Secretary of State for Housing, Communities and Local Government – Rt Hon Michael Gove MP *
Minister of State at the Ministry of Housing, Communities and Local Government, jointly with the Foreign, Commonwealth and Development Office (Minister for Equalities) – Kemi Badenoch MP
Department for Education
Secretary of State for Education – Nadhim Zahawi MP *
Minister of State – Michelle Donelan MP
Department for Digital, Culture, Media and Sport
Secretary of State for Digital, Culture, Media and Sport – Nadine Dorries MP *
Minister of State at the Department for Digital, Culture, Media and Sport – Julia Lopez MP
Department for Environment, Food and Rural Affairs
Secretary of State for Environment, Food and Rural Affairs – Rt Hon George Eustice MP
Minister of State at the Department for Environment, Food and Rural Affairs – Victoria Prentis MP
Department for Transport
Secretary of State for Transport – Rt Hon Grant Shapps MP
Northern Ireland Office
Secretary of State for Northern Ireland – Rt Hon Brandon Lewis CBE MP
Scotland Office
Secretary of State for Scotland – Rt Hon Alister Jack MP
Wales Office
Secretary of State for Wales – Rt Hon Simon Hart MP
Office of the Leader of the House of Lords
Lord Privy Seal, and Leader of the House of Lords – Rt Hon Baroness Evans of Bowes Park
Office of the Leader of the House of Commons
Lord President of the Council, and Leader of the House of Commons – Rt Hon Jacob Rees-Mogg MP
Whips – House of Commons
Parliamentary Secretary to the Treasury (Chief Whip) – Rt Hon Mark Spencer MP
Law Officers
Attorney General – Rt Hon Suella Braverman MP
The following have left the government:
Rt Hon Gavin Williamson CBE MP – previously Secretary of State for Education
Rt Hon Robert Jenrick MP – previously Secretary of State for Housing, Communities and Local Government
Rt Hon Robert Buckland QC MP – previously Lord Chancellor, and Secretary of State for Justice
Yesterday’s announcements coincidentally (?) overshadowed an important Westminster debate on social security and the cut to Universal Credit.
Peter Matejic, Deputy Director of Evidence & Impact at the Joseph Rowntree Foundation, said:“No Government committed to levelling up can credibly defend the biggest ever overnight cut to social security.
“As bills are going up, cost of essential items are rising and National Insurance is set to be increased, ministers are ploughing ahead with a damaging cut to Universal Credit which is fiercely opposed across the political spectrum.
“The Government is reportedly planning to ignore its own analysis which shows how catastrophic this cut would be. No good will come of cutting Universal Credit by £20-a-week. All it would do is impose unnecessary hardship on millions of low-income families and hurt the very communities the Government wants to level up.
“Ministers have nothing to say to the many families who are unable to work or are not expected to work due to sickness, disability or caring responsibilities who are facing this massive income shock.
We all need an adequate social security system and, for those who are already in work or looking for a job, a bold Plan for Jobs, if we are to improve living standards. The Prime Minister knows this and it’s not too late for him to keep this vital lifeline strong.”
Helen Barnard, Deputy Director of the Joseph Rowntree Foundation, said:“Today’s debate makes clear that the Prime Minister and Chancellor are increasingly isolated in supporting the cut to Universal Credit.
“There is widespread concern amongst MPs about the devastating impact this will have on huge numbers of their constituents and new ministers are certain to face intense pressure from families anxious about how they will make ends meet from next month.
“The £20-a-week increase to Universal Credit is vital to protect families from poverty and provide the stability they need to improve their prospects.
“As energy bills go up, prices on the shelves rise and National Insurance is set to increase, the Prime Minister must urgently keep this support in place, or his premiership risks being defined by plunging people into poverty rather than levelling up.”
Prime Minister Boris Johnson’s statement at yesterday’s press conference on health and social care:
Good afternoon, I’m joined by the Chancellor of the Exchequer and the Secretary of State for Health and Social Care, because today we’re setting out our plan to help our NHS recover from the pandemic and build back better by fixing the problems in health and social care that governments have avoided for decades.
We all know someone whose test, scan or hip replacement was delayed or who helped to protect the NHS amid the immense pressures of Covid by putting off treatment for a new medical condition.
And now, as people come forward again, we need to pay for those missed operations and treatments; we need to pay good wages for the 50,000 extra nurses we are recruiting, we need to go beyond the record funding we’ve already provided to the NHS, and that means going further than the 48 hospitals and 50 million more GP appointments.
So today, following the most successful vaccine programme in the world, we’re beginning the biggest catch-up programme in the history of the NHS, increasing hospital capacity by 110 per cent, and enabling 9 million more appointments, scans and operations.
I have to level with people – waiting lists will get worse before they get better, but compared with before Covid, by 2024/25 our plan will allow the NHS to aim to treat 30 per cent more patients who need elective care – like knee replacements or cancer screening.
A recovery on this scale cannot be delivered by cheese-paring budgets elsewhere and it would be irresponsible to cover a permanent increase in health and social care spending with higher day to day borrowing.
For more than 70 years, we’ve lived by the principle that everyone pays for the NHS through our taxes, so it’s there for all of us when we need it.
In that spirit, from April we will have a new UK-wide 1.25 per cent Health and Social Care Levy on earned income, with the money required by law to go directly to health and social care across the whole of our United Kingdom, and with dividends rates increasing by the same amount.
This will raise almost £36 billion over the next three years, not just funding more care but better care, including better screening equipment to diagnose cancer earlier and digital technologies allowing doctors to monitor patients in their homes.
The levy will share the cost as fairly as possible between people and businesses: because we all benefit from a well-supported NHS and all businesses benefit from a healthy workforce.
And those who earn more will pay more, including those who continue to work over the State Pension Age.
The highest earning 14 per cent of the population will pay around half of the revenue raised; no-one earning less than £9,568 will pay a penny, and most small businesses will be protected, with 40 per cent paying nothing extra at all.
And this new investment will go alongside vital reform, because we learned from the pandemic that we can’t fix the NHS unless we also fix social care.
When Covid struck, there were 30,000 hospital beds in England occupied by people who would have been better cared for elsewhere, and the inevitable consequence was that patients could not get the hip operations or cancer treatment or whatever other help they needed.
And those people were often in hospital because they feared the costs of care in a residential home.
If you suffer from cancer or heart disease, the NHS will cover the costs of your treatment in full.
But if you develop Alzheimer’s or Parkinson’s, then you have to pay for everything above a very low threshold.
Today, 1 in 7 of us can expect to face care costs exceeding £100,000 in our later years, and millions more live in fear that they could be among that 1 in 7.
Suppose you have a house worth £250,000 and you’re in a care home for eight years, then once you’ve paid your bills, you could be left with just £14,000 after a lifetime of work, effort and saving – having sacrificed everything else – everything that you would otherwise have passed on to your children – simply to avoid the indignity of suffering.
So we are doing something that, frankly, should have been done a long time ago, and share the risk of these catastrophic care costs, so everyone is relieved of that fear of financial ruin.
We’re setting a limit to what people will ever have to pay, regardless of assets or income.
In England, from October 2023, no-one starting care will pay more than £86,000 over their lifetime.
Nobody with assets of less than £20,000 will have to pay anything at all, and anyone with assets between £20,000 and £100,000 will be eligible for means-tested support.
And we’ll also address the fear many have about how their parents or grandparents will be looked after.
We’ll invest in the quality of care, and in carers themselves, with £500 million going to hundreds of thousands of new training places, mental health support for carers and improved recruitment, making sure that caring is a properly respected profession in its own right.
And we’ll integrate health and social care in England so that all elderly and disabled people are looked after with the dignity they deserve.
No Conservative Government wants to raise taxes, but nor could we in good conscience meet the cost of this plan simply by borrowing the money and imposing the burden on future generations.
So I will be absolutely frank with you: this new levy will break our manifesto commitment, but a global pandemic wasn’t in our manifesto either, and everyone knows in their bones that after everything we’ve spent to protect people through that crisis, we cannot now shirk the challenge of putting the NHS back on its feet, which requires fixing the problem of social care, and investing the money needed.
So we will do what is right, reasonable and fair, we’ll make up the Covid backlogs, we’ll fund more nurses and, I hope, we will remove the anxiety of millions of families up and down the land by taking forward reforms that have been delayed for far too long.
Chancellor Rishi Sunak’s statement on health and social care, delivered on 7 September 2021
Good afternoon.
I want to address straight away the following question:
Why do we need to raise taxes?
Three reasons.
First, we need to properly fund the NHS as we recover from the pandemic.
Senior NHS leaders have made clear that without more funding we will not properly be able to address the significant backlog…
…in people’s cancelled operations, delayed treatments, or missed diagnoses.
To get everyone the care they need is going to take time – and it is going to take money.
The second reason is that social care plans announced today have created an expanded safety net.
Instead of individuals having to bear the financial risks of catastrophic care costs themselves, we as a country are deciding to share more of that risk collectively.
This is a permanent, new role for the Government.
And as such we need a permanent, new way to fund it.
The only alternative would be to borrow more indefinitely.
But that would be irresponsible at a time when our national debt is already the highest it has been in peacetime.
And it would be dishonest – borrowing more today just means higher taxes tomorrow.
The third reason we need to raise taxes is to fund the Government’s vision for the future of health and social care.
Properly funded, we can tackle not just the NHS backlog and expand the social care safety net, we can afford the nurses pay rise;
Invest in the newest, most modern equipment;
Prepare for the next pandemic;
And provide one of the largest investments ever to upskill social care workers.
In other words, we can build the modern, more efficient health and social care services the British public deserves.
To fund this vital spending, we will introduce a new UK-wide Health and Social Care Levy.
From next April, we will ask businesses, employees and the self-employed to pay an extra 1.25% on earnings.
All the money we raise will be legally ringfenced, which means every pound from the Levy will go directly to health and social care.
The Levy is the best way to raise the funds we need.
It is fair: the more you earn, the more you pay.
It is honest: it is not a stealth tax or borrowed – the Levy will be there in black and white on people’s payslips.
And it is UK-wide, so people in England, Scotland, Wales and Northern Ireland will all pay the same amount.
To make sure everyone pays their fair share, we will also increase dividend tax rates by the same amount.
And, from 2023, people over the age of 66 will be asked to pay the Levy on their earnings too.
No Government wants to have to raise taxes.
But these are extraordinary times and we face extraordinary circumstances.
For more than 70 years, it has been an article of faith in this country that our national health service should be free at the point of use, funded by general taxation.
If we are serious about defending this principle in a post-Covid world …
… we have to be honest with ourselves about the costs that brings …
… and be prepared to take the difficult and responsible decisions to meet them.
Thank you.
PM Boris Johnson’s letter to the First Ministers of Scotland, Wales and Northern Ireland and Deputy First Minister of Northern Ireland on the new health and social care reform:
National Insurance Contributions increase ‘adds insult to injury’ for families facing devastating cut to Universal Credit
New Joseph Rowntree Foundation analysis estimates that around 2 million families on low incomes who receive Universal Credit or Working Tax Credit will pay on average around an extra £100 per year in National Insurance contributions under the Government’s proposed changes.
Peter Matejic, Deputy Director of Evidence & Impact at JRF said:“We are concerned that around two million families on low incomes who receive Universal Credit or Working Tax Credit will pay on average around an extra £100 per year in national insurance contributions under the Government’s proposal.
“This extra cost adds insult to injury for these families who are facing a historic £1,040 cut to their annual incomes when Universal Credit and Working Tax Credit are reduced in less than a month on 6 October. If it presses ahead, this Government will be responsible for the single biggest overnight cut to social security ever.
“With inflation rising, the cost of living going up and an energy price rise coming in October, many struggling families are wondering how on earth they will be expected to make ends meet from next month.
“The Chancellor is in denial if he seriously believes this cut will not impose unnecessary hardship on millions of families – the majority of whom are in low-paid work.
“Any MP who is concerned about families on low incomes must urge the Prime Minister and Chancellor to reverse this damaging cut, which will have an immediate and devastating impact on their constituents’ living standards in just a few weeks’ time.”
RCEM welcomes Government funding, but warns it won’t be enough
Responding to the announcement of an extra £5.4 billion of funding for the NHS, Dr Katherine Henderson, President of the Royal College of Emergency Medicine, said: “The announcement of this additional funding for the NHS over the next six months is very welcome.
“It comes at a crucial time when the health service enters what will likely be its most challenging winter ever, as it exits the pandemic, seeks to recover the elective backlog and faces the worst ever levels of performance in the summer.
“It is particularly welcome to see the investment in improving infection prevention control measures in hospitals, as this will continue to be of the utmost importance in the coming months. It is also pleasing to see funding to continue to improve the timely discharge of hospital patients. It is vital for Emergency Care that there is good flow throughout the hospital, which includes making sure patients have a smooth discharge from the hospital.
“While this short-term funding is appreciated, there must also be an adequate response to the sharp increase in demand and equivalent deterioration in performance. It is unlikely that this funding will be enough to help enable longer term recovery.
“The challenges that our Emergency Departments face stem from workforce shortages and capacity issues. A shortage of beds can lead to crowding, corridor care and poor flow through the hospital. Workforce shortages spread existing staff thinly and put them under severe pressure.
“These are long term issues and the only way to tackle them will be via a long-term funding plan for the health service, including a workforce plan to recruit nurses and doctors by expanding student medical and nursing places and training places.”
Dr Katherine Henderson, commenting on the announcement of a three-year settlement for health and social care, continued: “The three-year funding settlement announced for health and social care is welcome.
“But the scale of the challenges faced across the health and social care service at a crucial time of recovery mean this will likely not be enough – and the government must be realistic in the colossal task ahead for the health and social care service. It is essential that a plan to address the workforce crisis is prioritised.
“It is also welcome to see the long overdue the first steps towards a plan for social care. There has been a crisis within social care for some time, so it will be good to see the government fulfil its pledge to reform and tackle the social care crisis.
“For that to happen, it is vital that an adequate proportion of the settlement is allocated to social care.”
Commenting on Tuesday’s social care announcement by the Prime Minister, TUC General Secretary Frances O’Grady said: “We need a social care system that delivers high-quality care and high-quality employment.
“New funding for social care is long overdue. But today’s announcement will have been deeply disappointing both to those who use care, and to those who provide it.
“The Prime Minister promised us a real plan for social care services, but what we got was vague promises of money tomorrow.
“Care workers need to see more pay in their pockets now. Nothing today delivered that. Instead, the only difference it will make to low-paid care staff is to push up their taxes.
“This is so disappointing after the dedication care workers have shown during this pandemic keeping services running and looking after our loved ones.
“Proposals to tax dividends should have been just once piece in a plan to tax wealth, not an afterthought to a plan to tax the low-paid workers who’ve got us through the pandemic.
“We know social care needs extra funding. But the prime minister is raiding the pockets of low-paid workers, while leaving the wealthy barely touched.
“We need a genuine plan that will urgently tackle the endemic low pay and job insecurity that blights the social care sector – and is causing huge staff shortages and undermining the quality of care people receive.”
The TUC published proposals on Sunday to fund social care and a pay rise for the workforce by increasing Capital Gains Tax.
The union body says increasing tax on dividends is a welcome first step to reforming the way we tax wealth, but that it won’t generate the revenue needed to deliver a social care system this country deserves.
Instead, by taxing wealth and assets at the same level as income tax, the government could raise up to £17bn a year to invest in services and give all care staff a minimum wage of £10 an hour.
TUC analysis shows that seven in 10 social care workers earn less than £10 an hour and one in four are on zero-hours contracts.
Polling published on Sunday by the TUC showed that eight in 10 working adults – including seven in 10 Conservative voters – support a £10 minimum wage for care workers.
First Minister lays out her Programme for Government 2021/22
Leading Scotland safely out of the pandemic, urgently confronting climate change, driving a green, fair economic recovery, and boosting opportunities for children and young people are among the core priorities in this year’s Programme for Government (PfG), published yesterday.Oh … and there’s a referendum in there, too …
The programme sets out plans for a record increase in frontline health spending, new legislation for a National Care Service, a system providing low-income families with free childcare before and after school and during holidays, and actions to drive forward Scotland’s national mission to end child poverty.
The programme also includes plans to help secure a just transition to net zero – creating opportunities for new, good and green jobs, making homes easier and greener to heat, and encouraging people to walk, wheel or cycle instead of driving.
Speaking in Parliament, the First Minister said: “This programme addresses the key challenges Scotland faces, and aims to shape a better future.
“It sets out how we will tackle the challenge of Covid, and rebuild from it. It outlines how we will address the deep-seated inequalities in our society. It shows how we will confront with urgency the climate emergency, in a way that captures maximum economic benefit. And it details the steps we will take to mitigate, as far as we can, the damaging consequences of Brexit while offering a better alternative.
“In the face of these challenges, our ambition must be bold. This programme sets out clear plans to lead Scotland out of the greatest health crisis in a century and transform our nation and the lives of those who live here.
“We will deliver a National Care Service; double the Scottish Child Payment; and invest in affordable, energy efficient homes and green travel. We will ensure that businesses have the support, and people have the skills, to succeed in the low carbon economy of the future. We will show global leadership in tackling the climate crisis. And we will offer people an informed choice on Scotland’s future.
“To that end, I can confirm that the Scottish Government will now restart work on the detailed prospectus that will guide the decision. The case for independence is a strong one and we will present it openly, frankly and with confidence and ambition.
“This programme addresses our current reality, but it also looks forward with confidence and ambition to a brighter future. It recognises that out of the many challenges we currently face, a better Scotland – as part of a better world – is waiting to be built.”
Building on the progress from the first 100 days of this government, with the co-operation agreement with the Scottish Green Party at its heart, the PfG sets the scene for the next five years.
Key commitments for over the course of this Parliament include:
increasing frontline health spending by 20%, leading to an increase of at least £2.5 billion by 2026-27
undertaking the biggest public service reform since the founding of the NHS – the creation of a National Care Service – with legislation brought forward by June next year
improving national wellbeing with increased direct mental health investment of at least 25%, with £120 million this year to support the recovery and transformation of services
investing £250 million to tackle the drugs deaths emergency over the next five years
expanding the Scottish Child Payment to under-16s by the end of next year and doubling it to £20 a week as soon as possible after that, with a £520 bridging payment given to every child in receipt of free school meals this year
investing a further £1 billion to tackle the poverty-related attainment gap and providing councils with funding to recruit 3,500 additional teachers and 500 classroom assistants
providing free childcare to low income families before and after school and during holidays, and expanding free early learning and childcare to one and two year olds
investing £100 million over the next three years to support frontline services for preventing violence against women and girls
providing £1.8 billion to make homes easier and greener to heat, as part of a commitment to decarbonise 1 million homes by 2030
ensuring that at least 10% of the total transport budget goes on active travel by 2024-25, helping more people to cycle, wheel or walk instead of drive
delivering a revolution in children’s rights, including across the justice system
supporting a just transition to a low-carbon economy for people and businesses, including a £500 million Just Transition Fund for the North East and Moray
investing an additional £500 million to support the new, good and green jobs of the future, including by helping people access training
delivering 110,000 affordable homes by 2032 and investing an additional £50 million to tackle homelessness and rough sleeping
taking forward the democratic mandate for a referendum on independence to be held within this Parliament and, if the Covid crisis is over, within the first half of this Parliament, while providing the people of Scotland with the information they need to make an informed choice on their future.
Commenting on yesterday’s Programme for Government announcement, Chris Birt, Associate Director for Scotland at the Joseph Rowntree Foundation said:“Alarm bells should already be ringing in both the Scottish Government and Parliament that we are currently set to miss our child poverty targets, with no clear plan on how to achieve them.
“The Programme for Government published today pushes that plan further down the road, both to the budget later in the year and next year’s Tackling Child Poverty Delivery Plan.
“Time is running out on the targets. Families on low incomes across Scotland are experiencing growing financial pressure and uncertainty . They will hope the commitment to double the child payment “sooner rather than later” happens very soon and that our national mission to end child poverty gathers urgency and scale.”
The STUC welcomed the Scottish Government’s Programme for Government, specifically highlighting the commitments from the First Minister to implement national bargaining in the care sector, additional funding for the health service, gender recognition reform and justice for Scotland’s miners wrongfully arrested in the 1980s.
STUC General Secretary, Roz Foyer said: “Reform of our care sector cannot come quick enough and the STUC will engage fully in this legislation, campaigning for a National Care Service based on sectoral collective bargaining and not for profit delivery.
“The commitment of the First Minister to National Bargaining is therefore very welcome. However, the £800 million additional funding announced over the course of the Parliament is less than a quarter of the expenditure which the Feeley Review said was necessary for the social care sector.
“Yet we still have concerns that the Programme of Government tries too hard be all things to all people. It is simply not credible to raise the levels of investment required to tackle climate change, reduce inequality and create jobs while at the same time boasting about the lowest business taxes in UK and freezing income tax rates for the duration of the Parliament.
“The same lack of ambition is reflected in today’s Scottish Government response to the report of the Just Transition Commission which leaves much to be desired on future job creation and ensuring the burden of climate change is not carried by workers and the less well off.
“Fighting discrimination and inequality is at the heart of trade unions, we know trans people are some of the most disadvantaged and discriminated people in Scotland and the gender recognition bill is therefore extremely welcome in enabling trans people to access their human rights.
“Finally, I welcome the proposed Miners’ Strike Pardon Bill. It has been all too clear for decades that the miners were the victims of a politically inspired political attack and that organs of the state, including the police, were used to repress their legitimate industrial action.
“This Bill will help provide some relief to the thousands of lives were wrecked by wrongful arrest and is a testament to years of campaigning by working class families who refused to give up.”
GMB Scotland Secretary Louise Gilmour said:“The need to tackle the crisis in care is accepted, but the challenge is to end years of exploitation by giving care workers substantial pay increases. That’s how we’ll confront the understaffing crisis and transform the sector.
“It’s why GMB is campaigning for £15 an hour minimum for care workers. The prospect of staff remaining mired in wages of just under or over £10 an hour isn’t credible.
“And there is a growing consensus supporting that view, including among Cabinet Secretaries as the Greens committed to a £15 minimum in their recent manifesto, so we need to make it happen.
“If we are prepared to be bold and deliver proper value for workers across the social care sector then there is a huge opportunity to be grasped, everyone will benefit and Scotland will be fairer for it.”
Joanne Smith, policy and public affairs manager for NSPCC Scotland, said: “Recovery and reform are very much needed as we move forward from the pandemic, and this year’s Programme for Government is the first step in this journey.
“For children in Scotland to have the best start in life, it is vital that all families can access holistic support, where and when they need it, and so we are heartened by the Scottish Government’s announcement of a Whole Family Wellbeing Fund.
“In line with the Promise’s recommendations we would like to see that national spending prioritises early, preventative support for families, therefore stripping out demand for crisis-led services.
“We are also greatly encouraged by the Scottish Government’s commitment to review and redesign the Children’s Hearing System. Through our work with very young children and families in Glasgow, we see the limitations of current justice processes in meeting the distinct needs of infants and their families.
“Given that around a third of children who come into care in Scotland are under the age of five, we need to ensure justice processes are better aligned with infants’ developmental timescales. We look forward to working alongside the Review team to ensure that the rights of infants are upheld throughout the process.”
Mary Glasgow Chief Executive of the charity Children 1st said: “Today’s Programme for Government has rightly prioritised the right of children and their families to know they can access the help and support they need whenever they need it.
“Children 1st have long called for a transformation in the support available to families, which must be based on learning from the – often difficult – experiences of children and their families when they have needed practical, emotional or financial help.
“The proposed £500m investment in a ‘Whole Family Wellbeing Fund’ is a hugely welcome step forward and we are committed to working alongside children and their families, and the Scottish Government, to turn this significant investment into practical action.”
Tracy Black, CBI Scotland Director, said:“With Glasgow hosting COP26 later this year, the Scottish Government is right to focus on its plans for a net zero economy. Yet given the need to cement Scotland’s economic recovery post-pandemic, businesses will feel there ought to have been a greater focus on boosting growth. While there were encouraging mentions of greater access to finance, the devil will be in the detail.
“Firms are already decarbonising their operations, and, by working alongside government, can help urgently transform net zero ambitions into action. Reforming the planning and business rates systems – enabling much needed in investment in low carbon infrastructure – would help achieve ambitious climate targets.
“The First Minister is also right to highlight that COVID hasn’t gone away. Scottish firms have worked tirelessly throughout the crisis to keep staff and customers safe. Businesses are not calling for a rushed return to the workplace, though employers will rightly be speaking with their employees about a gradual return in line with the latest guidance.
“As the economy reopens, skills shortages remain a key concern, so employers will be frustrated not to hear more about plans for upskilling and retraining.
“Business investment is absolutely vital to Scotland’s economic recovery, and the government should do everything in its power to attract – not repel – investment and the very best talent. Ultimately, by working more closely with business to create sustainable economic growth, ministers will be able to achieve their goals of improving people’s living standards and public services.”
The largest coalition of organisations to date on this issue has signed a joint open letter to the Prime Minster calling on him not to go ahead with the planned £20-a-week cut to Universal Credit and Working Tax Credit, due to come into effect on 6 October.
The joint letter, coordinated by the Joseph Rowntree Foundation, is signed by a wide range of 100 organisations that operate at a national level as well as in communities across the UK. Among the signatories are leading voices on health, education, children, housing, poverty, the economy and other aspects of public policy.
OPEN LETTER
Dear Prime Minister,
We are writing to collectively urge you not to go ahead with the planned £20-a-week cut to Universal Credit and Working Tax Credit at the beginning of October.
Many of us provide frontline support in communities up and down our country and see first-hand the importance of our social security system. Life is full of crises that we cannot plan for, such as job loss or illness, and periods of lower earnings or caring responsibilities. We all need the security and stability of a strong lifeline, not just during a national crisis, but every day.
Imposing what is effectively the biggest overnight cut to the basic rate of social security since World War II will pile unnecessary financial pressure on around 5.5 million families, both in and out of work.
At the start of the pandemic, the Chancellor rightly said that he was introducing the £20 increase to “strengthen the safety net” – a tacit admission that a decade of cuts and freezes had left it unfit to provide the support families need. We all strongly supported this crucial improvement in support.
We are at risk of repeating the same mistakes that were made after the last economic crisis, where our country’s recovery was too often not felt by people on the lowest incomes. The erosion of social security support was one of the main drivers of the rise in in-work and child poverty, and contributed to a soaring need for food banks, rising debt and worsening health inequalities.
We deeply regret that the Department for Work & Pensions has not published its assessment on the impact of cutting Universal Credit and Working Tax Credit. However, the latest independent analysis from the Joseph Rowntree Foundation (JRF) shows it risks plunging 500,000 people into poverty, including 200,000 children. It will take the main rate of out of work support down to its lowest levels in real terms since around 1990.
This is not a question of having to choose between a recovery based on getting people into jobs or investing in social security, in fact most families impacted by this cut to Universal Credit and Working Tax Credit are already in work. The reality of the UK labour market means that to improve living standards, we need to both improve job quality and strengthen the social security system. We also must never lose sight of the need to provide adequate support to families who are not able to work so they can meet their needs with dignity.
Six former Conservative Work & Pensions Secretaries believe previous cuts to social security spending went too far and oppose this cut, and your own Conservative MPs are warning that it will have deep and far-reaching effects in their constituencies.
Recent analysis from JRF shows that 413 parliamentary constituencies across Great Britain will see over a third of working-age families with children hit by the planned cut to Universal Credit and Working Tax Credit on 6 October 2021. Of these 413 constituencies, 191 are Conservative – 53 of which were newly won at the last general election or in a subsequent by-election.
This looming cut would fundamentally undermine the Government’s mission to level up. Citizens Advice has identified that people are one and a half times more likely to claim Universal Credit in places the Government has prioritised for levelling up investment. They also found for every £1 that could be invested from the Levelling Up Fund in England, £1.80 would be taken from these local economies if the Government presses ahead.
Furthermore, it is unacceptable that legacy benefits, such as Employment and Support Allowance, Jobseeker’s Allowance and Income Support, continue to be excluded from this crucial improvement in support, mostly impacting people who are sick, disabled or carers.
We are rapidly approaching a national crossroads which will reveal the true depth of the Government’s commitment to improving the lives of families on the lowest incomes.
We all want a social security system that supports families to escape poverty rather than pulling them deeper into it. However, this cut risks causing immense, immediate, and avoidable hardship. A strong social security system is a crucial first step to building back better. We strongly urge you to make the right decision.
Yours sincerely,
Action For Children
Advice NI
APLE Collective
The Association of Charitable Organisations
Become
Bevan Foundation
The Big Issue
Bright Blue
The British Association of Social Workers
British Psychological Society
Business in the Community
Carers UK
Caritas Social Action Network
Centre for Cities
Centrepoint
Child Poverty Action Group
Children England
Christians Against Poverty
Church Action on Poverty
Citizens Advice
Citizens Advice Scotland
Citizens UK
Communities that Work
Crisis
Disability Benefits Consortium (a network of over 100 disability organisations)
Employment Related Services Association (ERSA)
End Child Poverty Coalition
End Furniture Poverty
The Equality Trust
The Faculty of Public Health
Family Fund
Feeding Britain
The Food Foundation
Generation Rent
Gingerbread, the charity for single parent families
A new initiative co-funded by the Joseph Rowntree Foundation and supported by the New Statesman and Daily Mirror aims to increase opportunities for aspiring writers and journalists from under-represented backgrounds.
A WRITING CHANCE is a UK-wide programme, delivered by New Writing North and literature organisations nationally, with research from Northumbria University. It is looking for fresh perspectives and great stories from people whose voices have historically not been heard in publishing and the media.
Through mentoring with established writers and journalists, bursaries, insight days, broadcast and publication with by-lines, A Writing Chance seeks to prise open a persistently elitist industry to encourage access for all.
A Writing Chance is a positive intervention, designed to discover new talent, support new writers from under-represented backgrounds to break into the creative industries, and empower publishers and editors to make space for a broader range of perspectives.
Who gets to write for the British media we all read?
The media may be one of the most competitive industries to break into, but it isn’t a meritocracy. For many new writers, progress does not always correspond to their talent and those with huge potential are often held back by a range of barriers.
A London-centric industry; unpaid and low-paid internships; the casualisation of jobs; and a reliance on personal contacts make finding work in the media far more difficult for people from working-class and lower income backgrounds. What’s more, people from these backgrounds often face intersecting challenges due to historic under-representation in the media, including but not limited to ethnicity, disability, sexuality, gender identity, age and religious beliefs.
47% of authors and writers are from the most privileged social starting points, contrasting with only 10% from working-class backgrounds. Office for National Statistics’ Labour Force Survey, 2014
12.6% of those working in publishing come from working-class social origins, compared with a third of the population as a whole. Cultural Capital: Arts Graduates, Spatial Inequality, and London’s Impact on Cultural Labor Markets, 2017
Newspaper columnists, who significantly shape the national conversation, draw from a particularly small pool, with 44% attending independent school (compared with 7% of the population) and 33% coming through the independent school to Oxbridge ‘pipeline’ alone (compared with less than 1% of the population who attend Oxbridge). Sutton Trust, Elitist Britain 2019
Just 0.2% of British journalists are Black (compared to 3% of the population) and 0.4% of British journalists are Muslim (compared to nearly 5% of the population). City University, 2016
Husna Mortuza, Deputy Director of Advocacy and Public Engagement, Joseph Rowntree Foundation said:“We are delighted to support ‘A Writing Chance’. This powerful project will bring new voices to the public, and address inclusivity in our media and publishing industries head on.
“Far too often, talented storytellers from working-class backgrounds have found it difficult to break into the industry whether through lack of support, networks or space to develop their craft. This project aims to better understand the many barriers that budding writers from under-represented groups face, and to create opportunities for more non-fiction and creative writers to be part of the industry.
“Hearing a diverse range of voices from across society matters, and both writers and readers will benefit from a widening of the lens. I look forward to reading some new work and fresh perspectives on the year we’ve just lived: Life in 2020-2021.”
Alison Phillips, Editor-in-Chief of the Mirror, said:“At the Mirror we understand the power of having a voice and holding people accountable.
“Ensuring that everyone has access to that power will only make the national conversation that much more interesting and effective. I can’t wait to see the new talent this project uncovers.”
Jason Cowley, Editor of the New Statesman, said:“For too long the world of journalism has favoured a privileged minority. The New Statesman, which thrives on discovering new voices, is delighted to lend its support to this vital scheme to redress the balance.”
A Writing Chance is now open for application until 26 March 2021. A group of ten new and aspiring writers of journalism, fiction and creative non-fiction will be selected for the programme, which includes the opportunity to have work published in the New Statesman or Daily Mirror (in print or online), or broadcast as part of a new podcast series.
Millions of jobs will continue to be supported over the winter months with the UK government’s Job Support Scheme (JSS) available to businesses across the UK from Sunday, 1 November.
combined with the Job Retention Bonus (JRB), the Job Support Scheme (JSS) will cover at least 95% of the total employment costs for average previously furloughed employee until February
when factoring in the JRB analysis shows employers will receive the full employment costs of around half of people on JSS Open – which is available to businesses across all parts of the UK from Sunday
data shows the Coronavirus Job Retention Scheme (CJRS) has successfully protected jobs – with 90% of people returning to the same job after being furloughed
It comes as analysis reveals the generosity of the government’s income support schemes – with many firms receiving the full employment costs of staff.
Chancellor of the Exchequer, Rishi Sunak, said: “I’m pleased that the IMF this week called our response to the pandemic one of the best examples of coordinated action globally – the furlough scheme has been central to that, supporting 9.6 million jobs through some of the most challenging economic times.
“But it’s right that as we move towards a more targeted approach to tackle the virus, our support becomes more targeted too.
“The Jobs Support Scheme will continue to protect jobs throughout the difficult months ahead and is part of our comprehensive Plan for Jobs.”
The JSS scheme launches on Sunday and is designed to support businesses across the whole of the UK who are either legally required to close or facing lower demand over the winter months.
Under the JSS Open part of the scheme, which was made more generous last week, the government contributes 62% towards the wages of staff for the hours they do not work, whilst the employers pay just 5% plus NICS and pensions contributions. Employees receive a minimum of 73% of their wages.
Under JSS Closed, which is for businesses legally required to close due to coronavirus restrictions, the government will pay two thirds of each employees’ salary with employers just covering NICs and pension contributions, a very small proportion of overall employment costs.
Firms who retain staff that have previously been furloughed until the end of January will also receive a £1,000 per eligible employee payment under the JRB.
Taken together, the two schemes (JSSO and JRB) will cover 95% of the employment costs of the average previously furloughed employee until the end of January. For those earning less than £1,100 per month the JRB offsets all the employer costs of the JSS Open– meaning businesses will not have to make any contributions. Under the original CJRS around half of furloughed workers had earnings below this level.
For many lower earning employees on Universal Credit (UC), the combined impact of the support of the JSS and UC will mean they could receive around 90% of their normal net income (whilst working only 20% of the hours).
The CJRS closes today on Saturday 31 October ahead of the JSS launch tomorrow on Sunday 1 November.
As the scheme draws to a close new data published by HMRC shows that during the scheme’s eight month life it has protected 9.6 million jobs through some of the most challenging economic times the country has ever faced – with 90% of those coming off furlough by August returning to the same job.
The JSS and JRB are just one part of the UK Government’s package of measures that includes the extended business grants and Self-Employed Income Support Schemes announced last week, which will continue to support businesses and livelihoods across the country over the winter months.
Further information:
there is no gap in support between the CJRS and JSS
the deadline for submitting CJRS claims is 30 November
the JSS launches on 1 November, and employers can submit claims directly to HMRC from December 2020
HMRC stats show that 90% of those coming of furlough before August returned to the same job
Andrew normally works 5 days a week and earns £1400 a month, working in at a restaurant in the hospitality sector. His company is suffering reduced sales due to coronavirus. Rather than making Andrew redundant, the company puts Andrew on the Job Support Scheme, working 20% of his usual hours.
His employer pays Andrew £280 a month for these hours.
And for the time he is not working (80%), he will get 66.67% of his pay for that time. His total wage package is 73%, equal to £1,027. The government will give a grant worth £691 (61.67% of hours not worked) to Andrew’s employer to support them in keeping Andrew’s job, and his employer will pay a further £56 for hours not worked (5% of wages).
In addition, the employer will cover the Employer NICs and autoenrollment pension contribution on the payment (£56).
His employer may also be eligible for the Job Retention Bonus worth £1,000, this would cover 94.6% of employers total costs for retaining Andrew on the JSS between November and January.
For many lower earning employees on Universal Credit (UC), the combined impact of the support of the JSS and UC will mean they could receive around 90% of their normal net income (whilst working only 20% of the hours).
Example 2 – Job Support Scheme Open
Elena normally works part-time and earns £1,100 a month. Her company is suffering reduced sales due to coronavirus. Rather than making Elena redundant, the company puts Elena on the Job Support Scheme, working 20% of her usual hours.
Her employer pays Elena £220 a month for these hours.
And for the time she is not working (80%), she will get 66.67% of her pay for that time. Her total wage package is 73%, equal to £807.
The government will give a grant worth £543 (61.67% of hours not worked) to Elena’s employer to support them in keeping Elena’ job, and her employer will pay a further £44 for hours not worked (5% of wages).
In addition, the employer will cover the Employer NICs and autoenrollment pension contribution on the payment (£19).
Her employer may also be eligible for the Job Retention Bonus worth £1,000, this would cover over 100% of employers total costs for retaining Elena on the JSS between November and January.
For many lower earning employees on Universal Credit (UC), the combined impact of the support of the JSS and UC will mean they could receive around 90% of their normal net income (whilst working only 20% of the hours).
Example 3 – Job Support Scheme Closed
Charlie normally earns £1,400 a month and his company needs to close due to coronavirus. Rather than making Charlie redundant, the company puts Charlie on the Job Support Scheme Closed.
The government will give a grant worth 66.67% of Charlie’s pay to his employer to support them in keeping Charlie’ job.
That means for the time he is not working, he will get 66.67% of his pay. His total wage package is equal to £933.
The employer will cover the Employer NICs and autoenrollment pension contribution on the payment.
For many lower earning employees on Universal Credit (UC), the combined impact of the support of the JSS and UC will mean they could receive around 90% of their normal net income (whilst working only 20% of the hours).
Example 4 – Job Support Scheme Closed
Dalia normally earns £1,100 a month part-time and her company needs to close due to coronavirus. Rather than making Dalia redundant, the company puts Dalia on the Job Support Scheme Closed.
The government will give a grant worth 66.67% of Dalia’s pay to her employer to support them in keeping Dalia’s job.
That means for the time she is not working, she will get 66.67% of her pay. Her total wage package is equal to £733.
The employer will cover the Employer NICs and autoenrollment pension contribution on the payment.
For many lower earning employees on Universal Credit (UC), the combined impact of the support of the JSS and UC will mean they could receive around 90% of their normal net income (whilst working only 20% of the hours).
The Joseph Rowntree Foundation says there are still gaps in support that need to be filled, despite the Treasury’s support schemes.
The mortgage holiday scheme introduced at the start of the Covid-19 crisis ends on Saturday as does the job furlough scheme, which is being replaced by the Job Support Scheme.
It will leave a fifth of mortgage holders – around 1.6 million households – worried about paying their mortgage over the next three months, according to the poverty charity.
JRF said: “There is a real risk that mortgage-holders on low incomes will be pulled into poverty and hardship.
“890,000 working households with a mortgage expect to see a drop in earnings over the next month, but 85% of them – 750,000 households – aren’t eligible for any government support with their housing costs.
“It’s not right that during a time of huge uncertainty, many households are discovering that they are excluded from the only lifeline that could help meet their housing costs,” said Darren Baxter, policy and partnerships manager at the charity.”
The Joseph Rowntree Foundation wants the Support for Mortgage Interest payment to be reformed to help people who lose their jobs to keep their homes as they weather the coronavirus storm.
Scotland must show “bolder ambition” if it is to meet targets for tackling child poverty, a new report by the Joesph Rowntree Foundation (JRF) has warned.
Over one million Scots – one in six people – are living ‘precarious and insecure’ lives, according to JRF’s latest Poverty in Scotland annual report – and the situation is likely to become even more critical with the ongoing cornavirus and the imminent end of the furlough scheme this month.
Child poverty now stands at 24% – almost one in four of our children now lives in poverty. The Scottish Government’s target is to reduce this figure to 18% or less by 2023 – 24 -but unless there is radical action this target is unlikely to be met.
JRF’s associate director for Scotland Jim McCormick, who also chaired Edinburgh’s Poverty Commission, said we are at a “crucial moment”.
“The decisions we make will determine whether we reach our ambitious child poverty targets by the middle of the next parliament,” he said. “As the shape of our economy changes, it is vital to do all we can to protect people’s jobs, homes and living standards, so more families are not pulled into poverty.”
The JRF report calls on the Scottish Government to be more ambitious.
A Scottish Government spokesperson said the government is ‘absolutely committed’ to tackling child poverty and said initiatives including Scottish Child Payments, Best Start Grants and Best Start Foods are evidence of this. The spokesperson called for the UK Government to match Scotland’s ambition.
