A lack of action from the Government to tackle declining cash acceptance could lead to a two-tier society with the most vulnerable bearing the cost, a new report by the Treasury Committee finds.
The Committee heard directly from vulnerable groups, including people with learning disabilities, domestic abuse victims and the elderly, that buying essential goods and services can cost more as the number of places where they can spend their cash is reduced.
People who are already at increased risk of poverty will, therefore, face a poverty premium if cash is not widely accepted by businesses and other organisations.
The acceptance of physical currency for goods and services in the UK is not currently specified in any legislation. This means UK businesses and organisations could choose not to accept cash with no legal duty to accommodate customers’ varying needs.
Evidence submitted during the course of the inquiry sets out the challenge when attempting to assess levels of cash acceptance in the UK. For example, data from LINK in 2024 found half of respondents had been somewhere that did not accept cash or discouraged cash usage in the previous eight weeks. However, when polled by Savanta, 98% of small businesses said they accepted cash.
The lack of consistent evidence makes it difficult for anyone, including the Treasury, to determine the state of cash acceptance in the UK. In its report, the Treasury Committee calls on the Government to undertake vastly improved monitoring and reporting of cash acceptance levels. If it doesn’t, it risks creating a two-tier system where vulnerable groups become excluded from community spaces such as leisure centres, theatres and public transport.
When appearing before the Committee, the Economic Secretary to the Treasury stated: “we have no plans to regulate businesses, big or small, to compel them to accept cash”.
Having heard evidence on the impact of declining cash acceptance on vulnerable communities, MPs on the Committee believe there may come a time in the future when it becomes necessary for the Treasury to mandate cash acceptance if those who rely on physical cash are not adequately supported.
The report also highlights the national resilience benefits of maintaining the ability to spend physical cash, particularly in relation to recent bank outages which Members were told led to a surge in cash withdrawals.
Chair of the Treasury Select Committee, Dame Meg Hillier MP said: “The Government is in the dark on how widely cash is being accepted and that is completely unsustainable. We are at risk of a two-tier society where the most vulnerable bear the brunt and this needs to be a wakeup call.
“Our Committee has sought to give a voice to those groups which are at severe risk of not being heard by Government policymakers. A sizeable minority depend on being able to use cash and they must not be forgotten by Whitehall.
“As a society, we must avoid sleepwalking into a situation where cash is no longer widely accepted. This is the beginning, not the end, of our scrutiny of this issue. The Government needs to take this seriously.”
Anti-poverty charity Trussell is calling on the First Minister to take bold and decisive action on hunger and hardship in its Programme for Government next month
Failure to tackle hunger and hardship leads to the Scottish government spending an additional £860 million a year on public services like the NHS, schools and children’s social care
Trussell is calling on the UK government to urgently rethink planned cuts to support for disabled people, and update Universal Credit so that it protects people from hunger and hardship.
Failing to act on hunger and hardship in Scotland is costing the public finances and economy £5.6bn each year, new research by anti-poverty charity Trussell has revealed.
Published today, the Cost of Hunger and Hardship report includes analysis from economic and public policy experts WPI Economics on how much failing to tackle hunger and hardship costs Scotland’s economy and public finances. Informed by interviews with people with lived experience, the report explores how facing hunger and hardship is linked to worse health, employment outcomes and housing security.
The report finds that Scotland’s economy loses out on over £2.9 billion each year due to reduced employment and lower productivity, because of the ways in which hunger and hardship can harm people’s chances of gaining and maintaining stable employment.
For example, people said how facing hardship led to deteriorating physical and mental health, making it far more difficult to find and stay in work. Others talked about not being able to afford transport or the right clothes to attend a job interview, or not having access to the technology needed to complete job applications.
The public purse also loses out on over £1.4 billion in income from taxes (tax revenue) each year and needs to spend an additional £405 million on social security payments as a result of people facing hunger and hardship in Scotland. This is due to the scarring effects of severe hardship, which can lead to long-term unemployment and lower wages which can trap people in a cycle of hunger and hardship.
It found that failure to address hunger and hardship in Scotland leads to £860 million in additional spending each year on public services like the NHS, schools, children’s social care, and more.
Over half of this figure, £450 million, is spent on healthcare in Scotland alone, due to how hunger and hardship is linked to worse physical and mental health. Indeed, people who are disabled or living with someone who is are disproportionately more likely to experience hunger and hardship.
That’s why Trussell is calling on the UK government to rethink its cuts to disability benefits, as the anti-poverty warns that cutting support risks pushing more disabled people to food banks.
Cara Hilton, Senior Policy and Public Affairs Manager at Trussell in Scotland, said: “Trussell’s major new research demonstrates the huge impact of hunger and hardship on Scotland’s public services and the cost of failing to act.
“The Scottish Government has significant powers to turn the tide on hunger and hardship and must take bold and decisive action in Programme for Government next month, so no one else has to experience hunger and hardship under their watch.
“Not only is it the right thing to do, its common sense for our economy. Scottish and UK governments have both a moral and economic responsibility to act. There is no time to lose.
“At the same time, we are calling on Holyrood to use its voice to urge the UK government to rethink its cruel cuts to disability benefits, which risk pushing more disabled people to the doors of food banks.”
Responding to these findings, Trussell is calling on the Scottish Government to commit to:
Increasing the Scottish Child Payment to £40 a week. This would lift 84,000 people out of hunger and hardship with a reduction of costs to the economy, public services and the public purse of £435 million.
Ensuring everyone can access the financial support they’re eligible for would lift 100,000 people in Scotland out of facing hunger and hardship. This would lead to a reduction in costs to the economy, public services and public purse of £800 million.
Take action to reduce the disability employment gap. This would lift 36,000 people out of hunger and hardship, reducing costs to the economy, public services and the public purse by £230 million.
And across the UK, Trussell is calling on the UK Government to urgently rethink planned cuts to support for disabled people and to update Universal Credit so that it protects people from hunger and hardship:
Abolishing the two-child limit would lift 27,000 people in Scotland out of hunger and hardship by 2025/26. This would lead to a reduction in costs to the economy, public services and public purse of £115 million.
Introducing an Essentials Guarantee would lift 204,000 people in Scotland out of hunger and hardship and reduce the costs to the economy, public services and the public purse by £1.5 billion.
TACKLING SOCIAL INEQUALITY AND PROMOTING SUSTAINABILITY
Award winning charity, Street Soccer has today announced the launch of Kitback, a new charitable social enterprise designed to combine a collective love of football with social impact through the sale of pre-loved, upcycled football shirts.
All proceeds from the initiative will go towards supporting the life-changing work that Street Soccer addresses including homelessness, mental health, social exclusion, problem substance use and poverty.
Launching across the UK, Kitback will collect pre-loved football shirts from donors at dedicated drop-off points or by post and upcycle them in preparation for resale.
All shirts from teams, leagues, and countries across the globe are welcomed, offering a wide range of options for like-minded football enthusiasts to choose from. Each purchase made through Kitback gives fans a chance to own a piece of football history while contributing to greater causes.
Supporting the launch, football clubs, players and foundations are getting involved. Fulham FC Foundation have become the first professional club to donate to Kitback with others set to follow suit in the coming weeks and months.
As well as addressing key societal issues, the initiative also promotes environmental benefits by reducing waste and the demand for new clothing production, lowering football fans’ environmental footprint and keeping the circular economy moving.
As Kitback grows, another significant impact the social enterprise will have is to create jobs and volunteering opportunities for Street Soccer players and the wider community, helping to develop skills and experience that can be carried forward into the wider employment environment.
David Duke MBE, Social Entrepreneur & Founder of Street Soccer Scotland, expressed his enthusiasm for the new initiative:“Kitback is more than just a campaign; it’s a movement that brings together our shared passion for football and our collective commitment to helping our local communities.
“Football has a unique ability to unite people behind social causes and through Kitback, supporters can make a real difference. By donating your pre-loved football shirts and buying from Kitback when adding a new kit to your collection, you’re not only reducing environmental waste but also helping to empower and enrich people’s lives through everything we do at Street Soccer.”
Football fans, players and clubs are encouraged to come together with businesses and organisations to join the Kitback movement by donating and purchasing shirts, spreading the word, facilitating drop-off points and taking part in kit donation days during the year. Let’s change the world, one football shirt at a time!
Edinburgh residents are being urged to check their cost-of-living support to claim everything they are entitled to.
With 80,000 people living in poverty in Edinburgh – including close to a quarter of all children – tackling inequality and preventing poverty remains one of the biggest challenges facing the capital.
As it’s revealed that households could be owed up to £80 million in unclaimed benefits in Edinburgh, the council has rolled out two new self-help tools to make it easier for people to check what they’re owed.
A DIY benefits calculator, Entitled To, and a one-stop-shop for other forms of financial support, Lightning Reach, have been made available online.
A campaign has been launched to highlight these tools, urging residents not to leave their household budgets to chance.
Council Leader Jane Meagher said:“It’s a worrying time for lots of people who are struggling with rising costs and we want to make sure that every household is claiming all the benefits they are entitled to. If you go online, you’ll find our DIY benefits calculator which makes it straightforward to check what you might be owed, so that you can then apply for support.
“Our efforts to tackle poverty in Edinburgh have put almost £24 million into the pockets of those who need it most, but around £80 million in benefits remains unclaimed. It’s my hope that this campaign will help to challenge the barriers – stigma, complexity and lack of awareness – that prevent people from accessing the support they should be getting.
“I urge everyone to check their cost-of-living support and to get in touch for more advice or support as needed.”
Linda’s story
Linda, 59, has been a full-time-carer for her brother since their mother passed away almost 10 years ago.
She said: “I worked from the age of 17 and in my late 20’s I bought my own home and a car. But in 2015, my mother suddenly became unwell. She spent six months in intensive care on a ventilator and then passed away.
“I very suddenly became a full time carer for my brother, who has additional support needs. I had to stop working and sell my house to go live with him and my life changed completely.
I went from ‘having it all’ – a job, a house, holidays and savings – to having next to nothing. The stigma associated with having to ask for help and being judged for having to rely on benefits has probably been the hardest part.
“I wish I had sought help earlier than I did. I wish I had set my pride and feelings of shame aside and realised that asking for help is not a bad thing. When life events happen that turn your world upside down, there is help available. The hardest part is knowing where to look to find that help – it can be very challenging – and accepting that there is no stigma in asking.”
Progress to End Poverty in Edinburgh
This July will mark the mid-point between the publication of the Edinburgh Poverty Commission’s final report and the city’s target to end poverty by 2030.
Linda (as above) is a member of End Poverty Edinburgh. Speaking about this experience, she said: “By being part of End Poverty Edinburgh, I have had the opportunity to attend and speak at various meetings and events to raise awareness of the issues which those living in poverty have to face.
“We work closely with the council and others to improve customer experiences when seeking advice and help.
“We try to promote the help that is available which a lot of people aren’t aware of. Being part of this group has given me back a feeling of self worth.”
So far, positive collaboration on a range of initiatives between the council and partners has led to:
• Increasing access to grants and welfare advice by 20% over the last year
• Helping residents to receive almost £24 million in previously unclaimed benefits
• Supporting 5,000 people into work or learning (a 19% increase on the previous year)
• Driving down bills for 900 homes thanks to new energy efficiency measures
• Securing savings worth £206k for tenants through Energy Advice Support (an average of £428 per household)
• Helping to prevent homelessness for 461 households
• Over 9,000 free school meal payments and nearly 8,400 clothing grant awards
• Supporting 95% of all pupils to reach positive destinations after school
• Encouraging payment of the living wage (up 80 in a year to 720 accredited employers)
• Agreeing Council contracts committed to paying the real Living Wage (96% of suppliers, up 14%)
• Introducing a new Regenerative Futures Fund, a third sector led programme bringing £15m of new investment.
Last week councillors agreed to redirect all available council-owned housing stock towards people experiencing homelessness.
New local authority lets will be suspended in all but a few cases as the city council tries to address an increasingly worsening homelessness crisis in the capital.
Human rights in the UK in crisis as new report exposes crushing evidence of a social security system ruining lives
Discrimination and dehumanisation reported as rife as punitive system drives poverty by policy
‘They told me to go in for an assessment, and my baby had passed away… not even two days before…. And they were like, well if you need the money, you will come in. It’s not my fault your baby is dead’ – Claimant
‘I would often be asked the same question three times to see if I’d change my answer. The process feels like you are on trial for murder, they act like they are trying to catch you out and that you are begging’ – Peter
‘Lives are being ruined by a system that is consciously cruel – it erodes dignity by design. We are in a state of severe human rights violations’– Jen Clark, Amnesty
Amnesty International UK’s new report takes a deep dive into the murky and divisive world of the UK social security system. The unique research is an extensive look through the lens of human rights violations across our basic rights to housing, food, education, healthcare and social security.
The evidence delivers damning conclusions on how the system processes, punishes, harms and dehumanises people and fails to meet international legal obligations. Successive UK governments have ignored the UN’s pleas to take urgent action to fix this.
Poverty is a visible sign of a failing social security system. When the government knowingly makes choices to make poverty worse, it is deliberately violating basic human rights. We have moved from a society that supports people to a punitive system that drives poverty by policy.
The rate of poverty in the UK is now higher than at any point in the 21st century. Sixteen million people in the UK are living in families in poverty – almost a quarter of the UK*. Of these, 5.2 million are children, 9.2 million are working-age adults, and 1.5 million are pension-age adults.
For its report ‘Social Insecurity’Amnesty’s collaborated with over 700 benefit claimants and advisors to provide a platform for the people most gravely affected and show how politicians are playing with people’s lives and ignoring our most basic rights. In 2024 86% of low-income families on Universal Credit went without essentials such as heating, food and clothing.
With the backdrop of the Spring Statement and devastating disability social security cuts, Amnesty’s report delivers a crushing blow of evidence on the UK’s social security system and political choices that have pushed people into poverty and centres real-life experiences throughout, demonstrating the depth of dehumanisation.
Recommendations from the report
System overhaul: A landmark, independent Social Security Commission with statutory powers to overhaul the UK’s broken benefits system—rooted in dignity and human rights.
Urgent protection from harm: The UK Government to urgently reverse harmful social security cuts, sanctions and caps including the two-child limit and ensure upcoming reforms of PIP, ESA and Universal Credit, meet international human rights standards and are shaped by those most affected.
Legal protections: The UK Government to put in place legal frameworks protecting economic, social and cultural rights to ensure everyone’s basic human rights to food, housing, and dignity are protected in law and prevent failures in social security policy from causing wider harms.
Sections of the report expose
Systemic failures and lack of dignity and respect: Reports of hostile attitudes and judgmental behaviour within the Department for Work and Pensions (DWP) illustrate systemic shortcomings. The current system fails to meet its obligations to treat claimants with humanity and compassion, contributing to distrust and trauma of vulnerable individuals.
“Client had a Personal Independent Payment claim terminated as they would only offer a telephone appointment, despite them being profoundly deaf”. (Social Security Advisor)
“They told me to go in for an assessment, and my baby had passed away. Like not even two days before…. And they were like, well if you need the money, you will come in. It’s not my fault your baby is dead”. (Claimant)
Restricted access to Social Security and discriminatory practices
There are discriminatory conditions that restrict access for marginalised groups, inadequate transparency in eligibility criteria, and insufficient efforts to ensure effective, fair and transparent appeal processes.
“Every time someone is assessed inappropriately for benefits, it takes extra time and money for the mistake to be corrected. Most often the claimants suffer, but the taxpayers also suffer owing to the additional administration and resolution costs which need to be met”. (Advisor)
Social Security advisors across the country described how difficult access to information about entitlements and processes are. 64% of advisors rated it very difficult or difficult to get access to information on Universal Credit, and 68% of advisors said the same for PIP and 58% for ESA.
Of 416 claimants who responded to the question, 52% rated access to Social Security schemes as difficult or very difficult.
Unjust and ill-informed decisions on sanctions and deductions
23% of the claimants who completed Amnesty research had experienced being sanctioned or having a deduction. Within this, 78% of people said it worsened their mental health. 55% told us they reduced the food they ate and 35% went without food. 47% of people stated that it worsened their physical health. 44% of people told us they were forced to borrow money to make ends meet.
“Client lost benefits and home after being turned down for not attending the assessment as he soiled himself on the train to assessment centre and had to go home”. (Advisor)
“I’ve been sanctioned loads of time because I’m working. Borrowed off my sister and mother. Without them, I would probably be dead in the gutter because I couldn’t afford to live” (Claimant)
“They look down on you when you walk into the job centre. I had a panic attack in the job centre. I couldn’t breathe, and she went “you better get upstairs now and see your work coach, or we are going to sanction you” (Claimant)
“The actual interview is on the phone when they talk to you. They only give you one call…. If you missed that one call, they sanction that. They should give at least 3 rings at least give you a chance.” (Claimant)
Jen Clark, Economic and Social Rights Lead at Amnesty International UK, said:“Lives are being ruined by a system that is consciously cruel – it erodes dignity by design. We are in a state of severe human rights violations.
“The social security system is impenetrable, inadequate, and for some completely inaccessible.
“There can be no tinkering of the system – it has gone too far, and it is too late. There must be full reform. It is broken from start to finish and intentionally sets people up to fail. No-one would want political choices in this country to deliberately diminish dignity and perpetuate poverty.
“I’ve worked to highlight human rights violations for more than two decades and witnessed many awful situations. But never have I encountered such raw and widespread distress from people sharing their experiences in the UK.
“We need a landmark, independent Social Security Commission with statutory powers to overhaul the UK’s broken benefits system. It must be rooted in dignity and human rights and designed by and for the people. This must protect us all – be that today or in the future where we all may need it.”
Voices of the campaign
John, 60’s, from Hampshire was diagnosed with Multiple Sclerosis (MS) quite late on in life – in his 60s. It progressed much faster than he could have ever expected. “In August 2021, before I even knew what was happening to me, I was still working at the Ministry of Defence as a Policy Advisor. I was deployed to Afghanistan to help with the evacuation. Before my diagnosis, I had spent years working and contributing, and I never once thought I would be in a position where I needed to rely on benefits.”
In speaking about the experience of applying for Personal Independence Payment (PiP), John said:
“Applying was a nightmare. The process was so difficult and one-sided. When I finally received my assessment, DWP had scored me zero for the impact MS had on my daily life. Zero. If they had at least acknowledged some of the difficulties, if they had scored me a five or six or even a seven instead of the eight, I needed, I might have accepted it. But to say that MS had no impact on my life at all? That was infuriating.
“There is a bus stop 100 meters from my house. Usain Bolt could get there in less than 10 seconds whereas it takes me 10 minutes, but we would both score a zero for impact of MS on our lives. It’s ridiculous.”
Carly, 39, London is a single mother to a young son. She was recently receiving Universal credit, with contributions towards housing and her son’s childcare costs. Despite having good knowledge of the process from a prior job, she found navigating the social security system difficult.
In speaking about Universal Credit and the challenges that occur when benefits are wrongly cancelled, Carly said:
“As a single parent, working in a temporary role, I was not earning enough to cover private rental fees. My son had just started nursery, and I had a lot of expenses that my salary couldn’t cover. I applied for benefits with a five week wait – which was a very difficult time.
“When my role was made permanent, I got a lump sum of holiday pay in my paycheck – meaning I was paid more that month than usual. Unexpectedly, this led to my benefits claim being incorrectly cancelled. I wasn’t contacted about this and had no idea until the money didn’t appear in my bank account. I was crying on the phone telling my landlord I couldn’t pay my rent. I had a terrible ten-week wait until my social security payments started again and had to borrowed money from friends and family. I was offered an advance before the claim came through – but I’d already had one to pay for nursery fees and didn’t want to get into further debt.
“I did lodge a complaint about the cancellation of my benefits, but the claim wasn’t upheld, and I felt I didn’t have the time or energy to fight it.
“The hardest thing about the social security system is the uncertainty and insecurity around it all. It was very mentally challenging to not know when or how much my payments would be. I lived in fear of uploading the wrong information and having my benefits cancelled again. The worst part is the feeling like you have no control over anything. You always feel insecure. I was always relieved when universal credit went in, and it was the amount you were expecting.
“The stigma is real, navigating the system only amplifies it, making an already difficult situation even harder. You have no autonomy, no choice, there’s nothing you can do. It creates a feeling that you aren’t deserving or worthy – that you should be grateful and not challenge anything.”
Philip from Leeds
“I lost my job suddenly in September 2023. I did my applications early to get ahead, but I didn’t realise the claim automatically starts from the day you fill the form in, and you can’t change the date. It made my claim invalid which meant I missed my initial payment. I also never received the support I was due towards my home costs, despite chasing and asking many times. When I contacted the Job Centre to request a face-to-face appointment with a work coach, but it took me over a month to be able to get the appointment and sadly, it wasn’t helpful at all.
“Around this time, my father was ill with dementia. I live far from my parents and don’t drive, and being on such a low income meant I didn’t have the funds to travel there by public transport. I couldn’t afford to visit my father in his final days, and he passed away in November 2023. Not being able to see him before he died was extremely difficult and after going to my GP, I was put on anti-depressants.
“Having to chase my social security claim and not getting responses or offers to the jobs I was applying for, alongside with the grief I was experiencing, had a huge effect on my mental health and made things very difficult. I was struggling to cope.”
Additional case studies
Valerie*
“Being on benefits in the UK can feel almost taboo- something to keep private and feel embarrassed about. This is sad, because the vast majority of us are just normal people trying to live life the best way we can, raise our families and find whatever happiness there is in life despite the hardships we face.”
Peter
“I started receiving social security in 2021, just after I finished university. I applied for Personal Independence Payments (PIP) due to a long-term health condition. The PIP application process was atrocious and ultimately took over a year.
“I had to deal with a lack of understanding about my condition. One of the interviewers mislabelled and misunderstood the medical equipment I use and even went as far as to lecture me about my own illness. I had to get my doctor to write a letter just to confirm what I’d said.
“I would often be asked the same question three times to see if I’d change my answer. The process feels like you are on trial for murder, they act like they are trying to catch you out and that you are begging.
“The PIP application needs to be renewed every couple of years or so – despite my disability being due to a long-term health condition that won’t improve over time. Itt’s like I am starting over again each time.
“Watching my friends from Uni live their lives makes me feel like I am missing out on a lot. I would like to be able to do more things, to get out and about a bit more – perhaps take a day trip to a local area. Even to travel locally is hard as the buses are too expensive and I can’t afford a car. I don’t want to be on benefits, I’d love to be able to work but I simply can’t.”
Steve
“I had to stop working 15 years ago. I’d been struggling with severe pain in my right knee for about two years before finally having surgery. That’s when I was diagnosed with Osteoarthritis. I somehow managed to keep working through the pain, but eventually, it just became too much. I’ve now developed Osteoarthritis throughout my whole body.
“I use a crutch indoors and both crutches whenever I go outside. Getting around is incredibly difficult, but I push myself because if I didn’t get out at all, I’d feel down and alone.
“Appling for Universal Credit and PIP was tough. Being on benefits doesn’t feel great. I’m in a small studio flat and most days I’m by myself. Going out for shopping is the only time I see anyone. Prices have gone up too, which makes things harder.
“Losing my mum in 2020, just before lockdown, hit me hard. I still miss her so much. And visiting and being with my dad brings me comfort. It makes things much better for me. Visiting my dad is really hard with my condition. He’s 92 now and lives over three and a half hours away. My sister moved closer to him to help out. I try to go see them when I can, but the journey is a lot.
“I have to get a train into London, struggle through the underground to catch another train, then a bus, and finally a taxi to his place. Before COVID, I used to take the National Express coach straight to his, then just a taxi. But that route’s been cancelled and it’s now so much longer and more exhausting.”
Thousands of children to attend free breakfast clubs today, as UK government delivers its manifesto commitment and promise to working families
School mornings just got easier for families across England as 750 schools open breakfast clubs today, offering 30 minutes of free childcare, a healthy start for kids and a little more breathing room before the school bell rings.
Parents will be supported with additional time at the start of the day to attend appointments, get to work on time and run errands. In total, this means parents will be able to save up to 95 additional hours and £450 per year if their child attends free breakfast clubs every day.
This amount rises to a saving of up to £8,000 every year when combining the free breakfast clubs with further support through the expansion of government-funded childcare and new school uniform cap on branded items.
With the cost of everyday essentials stretching budgets, these clubs will be a lifeline for working families simply trying to get by. When you’re raising a family, every penny counts and that’s why the government is stepping in to ease the pressure and put money back in parents’ pockets.
No matter the postcode or the pay packet, every child deserves the same chance to thrive. That’s the principle behind this rollout — real support for families in every corner of the country, so no one is left behind.
These clubs sit alongside action to tackle the cost of living, with inflation falling for two months in a row, wages growing faster than prices and fuel duty frozen. The Labour government says that, together, they show the Plan for Change is delivering for working families.
Prime Minister Keir Starmer said: “As a parent, I know that the combined pressures of family life and work can often feel impossible to juggle. That is why our manifesto promised to make parents lives easier and put more money in their pockets with free breakfast clubs. Under a year since we came into office, this government is delivering that through our Plan for Change.
“The rollout of free breakfast clubs is a truly game-changing moment for families in this country. They mean parents will no longer be hamstrung by rigid school hours and have the breathing space they need to beat the morning rush, attend work meetings and doctors’ appointments, or run errands. And crucially, it means better life chances for children.
“By making these clubs free and universal, we’re doing something that previous governments have never done. We’re going further and faster to deliver the change working families deserve. That’s the change this government was elected to deliver.”
Education Secretary Bridget Phillipson said: “Free breakfast clubs are a central part of our Plan for Change. At a time when there is so much pressure on families, they provide real help with the cost of living and ensure children start the day with a nutritious meal.
“On top of the hectic school run, parents should not have to worry about how to balance work and getting their children fed and ready for school. These clubs will break down barriers and help children settle in, focus and get the most out of their learning.
“We are delivering on our promises and giving every child the best start in life while making sure families get the support they need, wherever they live.”
According to new government data, parents are also motivated to take up free breakfast clubs because of the improvements they can have on their wellbeing.
Many see them as is an opportunity to socialise with other children before school (30%) and spend more time doing the activities they enjoy (28%) – offering a supportive start to the day that leads to better behaviour, and better life chances.
The rollout delivers on the government’s manifesto promise to ensure state schools offer free breakfast clubs to all pupils; while supporting its Plan for Change milestone to ensure tens of thousands more children start school ready to learn.
Victoria Taylor, mum of two children aged 5 and 7, said: “For me, free breakfast clubs provide vital support, meaning I can get into work a little easier and ensure my two kids are settled and ready to learn.
“I’m a primary school teacher, so early mornings are a must however I try to not let my busy schedule dictate the pace of mornings.
“Taking my children to breakfast clubs means I know they are fed, ready to start the day and emotionally regulated – the commitment to rollout nationally will make the world of difference for working families.”
Trade unions argue that the funding allocated to breakfast clubs just isn’t enough, while charities and campaigners say that scrapping the current two child benefit cap would make a far greater difference in tackling poverty for the poorest families.
Leading anti-poverty charity, Trussell, launched Football vs Hunger – a campaign aimed at encouraging football clubs and fans to play their part in ending hunger in Scotland at this weekend’s St Johnstone match at McDiarmid Park in Perth.
During the 23/24 SPL and SPFL seasons, 211,609 emergency food parcels were distributed across Scotland – this includes 69,148 parcels provided for children facing hunger across the country. This is enough parcels to put one on every seat in Hampden Park four times over, with thousands of food parcels extra.
Clubs from throughout Scotland, have already joined Trussell’s Football vs Hunger campaign and have signed the Football vs Hunger charter.
This charter involves a number of commitments, including to call out and work to stamp out poverty chanting if it happens in the ground or from when the club’s fans are visiting opposition stadiums.
Hunger in Scotland isn’t a food problem – it’s an income problem. If everyone has enough money to for the essentials, we’ll end hunger for good. We know what needs to change to make this future possible, but we can only get there if everyone plays their part.
The clubs who have signed the charter are also encouraging fans to sign up to Trussell FC on the Trussell website to support the charge to end the need for food banks in Scotland.
Francis Smith, CEO of St Johnstone FC, said:“Football has a proud history of leading the way in shaping a better society, by uniting as one voice.
“Food banks are a lifeline for people facing hardship – but they’re not the solution. All of us at St Johnstone FC believe that everyone should have enough money to afford the essentials and that there shouldn’t be a single person in our community who has to experience hunger.
“Everyone at the club is so proud of how Saints fans already rally to support the local food bank. That’s why we want to encourage you to join football’s fight against hunger, and sign for Trussell FC – the only other team we’ll wholeheartedly encourage you to support.”
Football legend, Jeff Stelling, has thrown his support behind the campaign, saying: “Hunger in the UK was never an issue I expected to become so significant in 2025, but has become one of the most critical concerns in modern Britain.
“It’s just not right that so many people can’t afford to feed their families, and need to turn to food banks.
“That’s why I’m proud to support Football vs Hunger, and join the football community helping to end the need for food banks.”
Lori Hughes, Project manager at Perth and Kinross foodbank, said:“Football is made up of great rivalries, but one thing the football community can agree on is that we need to end hunger in the UK.
“Football vs Hunger is a rallying cry for everyone who loves the game to stand up for the people in their communities who can’t afford the essentials. So whatever colour shirt you wear, sign up to Trussell FC and join the football wide effort to end the need for food banks.”
Ellie Lambert, Head of Activations at Trussell, said:“Football clubs sit at the heart of almost every community in Scotland, that’s why we are delighted that so many clubs are choosing to show their support for our Football vs Hunger campaign.
“With hundreds of thousands of fans believing that there should be no place in a modern Britain for food banks, football can be a powerful voice for positive change.”
Just one in five (21%) older people say the State Pension is enough to cover basic living expenses.
‘Older people living on a low income, with caring responsibilities, or with a health condition are more likely to have cut back on heating and food.’
Independent Age call on Scottish Government to create a Pensioner Poverty strategy.
A charity’s new annual index on the economic wellbeing of older people in Scotland has revealed the difficult reality of being on a low income in 2025.
‘Older People’s Economic Wellbeing Index: Scotland 2024-25’, commissioned by Independent Age and conducted by the Diffley Partnership is a nationally representative poll of people aged 66 and over. This year marks the first year of the Index. The research will be repeated annually to track trends over time.
The Index shows that nearly one in five (19%) older people in Scotland have a household income of less than £15,000 a year, and paints a stark picture of difficulties in later life in income, costs, housing, quality of life and political representation. The research shows that certain groups are being particularly affected by the cost of living on a low income, including carers, people in one-person households and people living with a disability.
The number of older people in poverty is rising, with 156,000 or one in seven currently affected, a number that has risen by 25% in the last decade. Independent Age are calling for the Scottish Government to create a dedicated strategy to tackle this and for the UK Government to make sure that all social security payments provide enough to live on.
Income and financial wellbeing
The Index shows that older people across Scotland on a low income generally do not feel positive about their financial situation and that Government support for older people does not feel sufficient.
Just over one in five (22%) older people with an income of less than £15,000 rate their financial situation as good.
Three in five (61%) older people say the amount they receive from the State Pension isn’t enough to cover basic living expenses.
One in four (24%) older people with a health condition are not aware of Attendance Allowance/Pension Age Disability Payments.
One in four (24%) older women reported having an income of less than £15,000 compared to one in eight (13%) men.
Costs and cutbacks
Rising costs are hitting older people across Scotland, especially those living on a low income. Women, disabled people, carers and one-person households were found to be at particular risk of being financially forced to cut back on heating, skip meals and reduce social interaction.
Almost one in three (29%) older people in Scotland have skipped meals in the last 12 months
Less than half (47%) of older people in Scotland on an income of less than £15,000 are confident they will be able to pay their heating bills over next 12 months
Half (50%) of older people report that they have cut back on heating or utilities at least occasionally because of financial difficulties.
Over four in five (83%) older people with an income of less than £15,000 have cut back on heating or utilities.
Almost a third (32%) of older people with a health condition have skipped meals because of costs, compared to a fifth (21%) without a health condition.
Almost one in four (23%) women frequently or always cut back on heating or utilities, compared to one in six (17%) men.
Housing
The number of older private renters is rising across Scotland, yet this group often feel ignored by society. The Index shows that for too large a number, their housing situation is less than ideal.
People in the most deprived neighbourhoods (SIMD 1) are least likely to own their home outright and the most likely to rent from a social landlord compared to those in all other neighbourhoods (SIMD 2-5).
Older people renting from a private landlord were the least likely to say their home is ‘entirely suitable’ (40%) compared to those who own with a mortgage or loan (61%) or those who out-right owned (63%).
One in four (24%) older people report a challenge with the affordability of their housing, with it becoming unaffordable for them to live there.
Quality of life and political representation
Although most older Scottish residents polled said they are satisfied with their quality of life, most felt they were not well represented by political offices.
63% of people of pensionable age say they are not represented by the Scottish Government. This increases to 77% when it comes to the UK Government.
85% of older people supported the Scottish Government creating a pensioner poverty strategy and 81% supported the creation of an Older People’s Commissioner.
Across the board, older individuals with one or more health conditions are less likely to be satisfied with each aspect of life than those without any health conditions, including their quality of life as a whole (67%; 90%), their level of social interaction with others (66%; 83%), their general health (50%; 90%) and their ability to access public transport (54%; 73%).
Debbie Horne, Scotland Policy and Public Affairs Managersaid: “In a fair and just society, no one should be living their later years cutting back on food or not using the heating. They shouldn’t be living in a home that doesn’t meet their needs. Our new Index paints a stark picture of the reality of living on a low income in Scotland in 2025.
“We’re calling on the Scottish Government to develop a Pensioner Poverty strategy to address the misery felt by a rising number of older Scots on a low income. This should set out actions to boost incomes and social security take up and improve housing affordability and energy efficiency.
“They should also work to create an Older People’s Commissioner who could make sure that the voices of older people across Scotland are heard in policy making. Also, the UK Government must make sure that the social security payments that they control are adequate to live on.
“An Index to measure the economic wellbeing of older people across Scotland is overdue. We know that many in this group feel ignored by wider society, and that the poverty facing many of them isn’t given the attention it needs. We hope that the Index will change that.”
Mark Diffley, Founder and Director of the Diffley Partnershipsaid: “This important new survey provides valuable insight into the challenges older Scots face and highlights areas where support is needed, particularly for those on low incomes.
“Many are struggling financially and feel poorly supported and represented by government bodies and political representatives. Cost cutting behaviours are pervasive amongst older people and are especially prevalent amongst those who are further marginalised, such as those living in deprived neighbourhoods and people with health conditions.
“As the population ages, it’s vital to develop policies which ensure financial security and confidence to support continued independence and dignity in later years. We look forward to continuing to work with Independent Age to measure how these attitudes change over time.”
As consumers brace themselves for the higher prices kicking in from today across bills including energy, water and broadband, those on the lowest incomes are running out of options, Citizens Advice warns.
Households in the lowest 10% for income already spend around two fifths (41%) of their earnings – after housing – on water, energy, broadband and car insurance bills. This compares to 11% for those on middle incomes, with those in the top 10% for income spending just 5%.
These latest findings come from the Institute for Public Policy Research (IPPR), as part of a Citizens Advice led-partnership with IPPR, abrdn Financial Fairness Trust and Policy in Practice looking at social tariffs.
Their research found single-adult households, and particularly those with children, are more likely than other groups to be spending 20% or more of their post-housing income on these bills, leaving them more exposed to price shocks.
If well-targeted social tariffs and bill support schemes were rolled out across water, energy, broadband and car insurance markets, the IPPR found that could save households hundreds of pounds a year.
For example, if social tariffs reduced these essential bills by 25%, for those in the lowest 10% for income, it could bring in savings of around £13 a week or £680 a year. This would be equivalent to a boost of income (after housing costs) of around a tenth for a typical household in this group.
Sara’s story
Citizens Advice sees the difference social tariffs can make. The charity supported Sara [not her real name], whose disability, medical conditions and her son’s needs make it vital for her to have a phone and internet.
She said: “Citizens Advice gave me advice on benefits, food banks and utility bills – how to cut down on them with social tariffs for water, phone and broadband. I can’t let go of my phone and the internet.
It’s very important because of my illness. I’ve got a special telecom alarm for when I fall, so I need wifi in the house. It helps a lot.”
Dame Clare Moriarty, Chief Executive of Citizens Advice said: “After years of cost-of-living pressures, households across the country are about to feel the extra shock of rising essential bills. But for those on the lowest incomes, these unavoidable costs are already eating away at their finances, leaving their budgets stretched beyond breaking point.
“Social tariffs could be an effective safety net and put money back in people’s pockets, but the government and providers must work together to make sure nobody struggling to make ends meet misses out.
“We want to see people eligible for bill support automatically enrolled to receive it. This change can’t come soon enough.”
Professor Ashwin Kumar, Director of Research and Policy at IPPR, said: “Essential bills are leaving lowest earners with little room to breathe and causing huge anxieties.
“Well-designed social tariffs and bill support – across water, energy, broadband and insurance markets – could save households hundreds of pounds a year and provide a vital lifeline to some of the most vulnerable people across the country.”
Deven Ghelani, Director of Policy in Practice, said:“Leading utility companies are showing the benefits of data-sharing to support auto-enrolment and streamlined assessments.
“The government can take action today that makes straightforward access to social tariffs and bill support the core and expected response from utility companies to customers facing affordability issues.”
CATASTROPHIC:Tax justice or austerity-induced declines in life expectancy?
Tax Justice Scotland is seeking to promote a better conversation on tax policy. As such, the views expressed in this blog are those of the author and do not necessarily reflect the views of Tax Justice Scotland and its diverse supporters.
UK-wide austerity has caused average life expectancy to stagnate since 2012, and to decrease in the most disadvantaged areas (write GERRY McCARTNEY and DAVID WALSH) . With more UK-wide public spending cuts looming, the Scottish Government should use fairer taxation to combat the impacts of austerity – and avoid additional cuts.
Austerity Kills
Since 2010, a range of austerity measures have been implemented across the UK. Although most areas of public spending have suffered to some degree, the largest cuts have been directed at social security and local government, with brief interruptions in this broad approach only seen during the pandemic.
Our analyses show that the effects of austerity policies have been catastrophic.
The UK Labour Government’s self-imposed ‘fiscal rules’, which limit public spending, are triggering a new round of spending reviews across departments, with cuts again on the cards. Ahead of the Chancellor’s Spring Statement on 26 March, we’re now seeing reports of looming cuts to social security, with those on benefits further stigmatised.
Elsewhere, local government spending has been squeezed in real-terms per person by 18% in England (2010 to 2023/24), and 7% in Scotland (2009/10 to 2022/23). We have also just seen the international aid budget slashed to fund defence spending.
These cuts are a choice: after all, there is no shortage of fair tax options to raise more resources at UK level. Tax Justice UK and the Patriotic Millionaires suggest over £60 billion more could be raised per year through tax reforms and the closure of tax loopholes.
What can be done in Scotland?
In the absence of tax justice at UK level, the Scottish Government isn’t powerless.
It’s true that the devolution settlement dictates that it has to run a balanced budget, with the bulk of its revenues coming from the block grant, and a smaller proportion from devolved taxes.
This has meant that as budgets were squeezed in real-terms between 2010 and 2019 the Scottish Government has either had to pass on those cuts to Scottish public services, or raise taxes to protect budgets. Subsequent increases to deal with the pandemic have been eroded away .
Positively, the Scottish Government has chosen to raise some additional tax revenues; for example, the relatively small, but progressive adjustments in the Income Tax bands and rates. However, the scale of these changes has been wholly insufficient to compensate for the cuts in the block grant up to 2020.
Generating more revenue from Income Tax by increasing taxes for people on higher incomes would be a fair first step, particularly given that it is likely that most Scottish high earners work in the public sector and therefore cannot move that income elsewhere (the postholder could leave, but the job – and the tax paid on the income from it – would remain in Scotland).
But taxing earned income from employment isn’t the only way to raise more revenues to combat austerity; we must find ways to better tax wealth too.
Changes to how property wealth is taxed are long-overdue. Right now, the Council Tax is patently unfair because it taxes poorer households more than richer households as a percentage of their income and property value.
Wealth takes many forms – including ownership of land, shares and savings, as well as pensions, and other assets. Devolved powers to better tax all of these forms of wealth are limited, but options like a land tax, perhaps administered locally, could be considered. Doing so would not only raise more revenues to fund services but also combat the damaging impact of wealth inequality on the economy.
Wealth inequality fuels other inequalities, like those related to gender and ethnicity. But most importantly, a growing wealth gap between those who have wealth and those who don’t – locks some of us into a life of precarity and poverty, and others into one of privilege and opportunity.
This not only concentrates advantage, opportunity and power in fewer hands, but also limits social mobility for the majority, undermines the social contract, and can ultimately threaten social cohesion and democratic politics.
With a recent report for the STUC indicating that a combination of tax justice reforms in Scotland could raise an additional £3.7bn per year, we must see faster progress.
Reject austerity and deliver tax justice
So, in the absence of action at UK level, if the Scottish Government really wants to protect the health of the Scottish population, fighting back against austerity will be necessary. The only real option in the current context is to increase taxes in a fair way so that the rich pay more.
Tax justice for Scotland, and the rest of the UK, really is a matter of life and death.
This blog was written by Gerry McCartney, Professor of Wellbeing Economy, University of Glasgow and David Walsh, Senior Lecturer in Health Inequalities, University of Glasgow.
