Poverty – Page 11 – The NEN – North Edinburgh News

TUC: Only good, well-paid work is a route out of poverty

Work should be a route out of poverty. But, especially under this government, it isn’t (writes TUC’s ALEX COLLINSON).

This week, news came out that the Prime Minister hopes to “blunt calls for urgent action on the cost of living crisis by stressing that work is the best route out of poverty”.

It’s a popular line with this government. And it should be true – but sadly, it isn’t.

The majority of people in poverty (57 per cent, or 8.3 million people) live in a working household. That rises to 75 per cent of children in poverty.

The government’s record on this is atrocious. The number of people in in-work poverty has increased by 2 million since they came to power in 2010. It’s now at a record high, as is the number of children in poverty living in a house where at least one adult is in work.

If work is to be the best route out of poverty, the government must do more to get pay rising. In the meantime, it can’t use “work is the best route out of poverty” as a cop out for not properly addressing the cost of living crisis. We need proper action. Structural solutions – such as improved trade union rights, nationalisation of energy companies, and improvements to the benefits system – are needed alongside a windfall tax to fund urgent support to pay energy bills.

17-year pay squeeze

A key reason for the rise of in-work poverty is that work simply doesn’t pay enough. The government’s minimum wage, even the one it calls a living wage, isn’t a real living wage.

And we’re in the midst of a 17-year pay squeeze. Real pay is currently lower than it was in 2008, and the Office for Budget Responsibility forecasts that it won’t return to above 2008 levels until 2025. This 17-year pay squeeze is, by far, the longest in living memory.

The impact of this on workers’ pay packets has been massive. If real weekly wages had continued growing at the pre-2008 rate, they’d now be £111 per week higher than they are. By 2026, if forecasts are correct, this’ll be £164.

Impact of energy costs

It’s against this background that real pay is falling again. Inflation, at 9 per cent, is hitting wages hard. In March 2022, average weekly earnings fell by £16 per week (-2.7 per cent) compared to the same month a year ago. Public sector pay growth is the worst on record – falling by £30 per week (4.9 per cent) over the same period.

The news that the energy cap will rise by around £800 in October is incredibly worrying. If this does happen, it means that between December 2021 and December 2022, energy bills will have risen by a massive 119 per cent. In contrast, nominal wages will have risen by just 5.2 per cent. The standard benefits payment will have risen by just 3.1 per cent. This means that energy bills are set to grow 23 times faster than wages and 38 times faster than benefits this year.

Insecure work

On top of this, work is too often insecure. 3.6 million people are in insecure work, whether that’s zero-hours contracts, agency work, casual work, or low-paid self employment. The government has repeatedly broken its promise to introduce an employment bill that would tackle insecure work.

The benefits system

Pushing work as the route out of poverty is also often the government’s way of refusing to improve the welfare system. decent work and social security must go hand in hand, not be seen as alternatives.

Since it came to power, the government has repeatedly cut benefits payments in real terms. The real value of the standard benefits payment has fallen by £51 per month since 2010.

As set out above, in the face of massive rises in energy bills, the government has made real term cuts to benefits payments. When the price cap rises again in October, energy bills will be £1,523 per year higher than they were a year before. The standard benefits payment will only be £121 per year higher.

A common proposal around benefits is to bring forward the increase in benefits and pensions that would be expected in April 2023/24 to autumn of this year. For example, if inflation hit 10 per cent in September of this year (September is the reference month for benefit uprating), rather than waiting to increase benefits in April, they could be increased in October, and then maintained at that level from April onwards.

But this would increase benefits by around £7.70 a week, meaning it wouldn’t even go close to making up for cutting the £20 uplift.

Like the standard benefits payments, pensions also went up by just 3.1 per cent in April this year. Government made an active decision not to maintain the triple-lock – which would have seen pensions rise by around 8 per cent in line with the wage figures last autumn. This will cost pensioners almost £500 across the year.

Good, well-paid work is a route out of poverty

The current government has a proclivity towards badly funded temporary schemes and half-baked novelty ideas, which has again become clear during the current crisis. If it’s serious about tackling the cost of living crisis, we needed proper solutions to support people right now, alongside structural changes to fix these problems in the long term.

It’s not enough to just say that work is a route out of poverty. The reality is that too much work is low-paid and insecure. If government wants work to be a route out of poverty, it needs to ensure all work is well-paid and secure.

When it comes to pay, government should stop attacking trade unions, and instead improve trade union rights. Trade unions need stronger powers and better access to workplaces to drive up wages and conditions.

Fair pay deals need to be implemented in whole industries, negotiated with unions, and designed to get pay and productivity rising in every sector. We also need an emergency boost to the national minimum wage, as well as the long-awaited introduction of that employment bill they’ve been promising for ages to tackle insecure work.

To help people with energy costs, the government must recognise that energy is an essential public good that should come under public ownership, and implement an accelerated programme to insulate homes. To help people right now, we need a windfall tax to pay for additional grants to help with the costs of energy. With the energy cap rising by £1,523 in the space of just a year, this support will need to be substantial.

Government must also fix the benefits system. We want much more generous benefits payment (with the standard payment raised to £260 per week), alongside the scrapping of the cruel aspects of the system, such as the five-week wait, the benefits cap, the two-child limit and no recourse to public funds.

Work isn’t currently a route out of poverty, but it can be if government takes steps to ensure that all work is good, well-paid work.

Most vulnerable households will get over £1000 of help with cost of living

MORE SUPPORT NEEDED, SAYS SCOTTISH FINANCE SECRETARY

The most vulnerable households across Scotland will receive support of over £1,000 this year, including a new one-off £650 cost of living payment
Universal support increases to £400 across Great Britain, as the October discount on energy bills is doubled and the requirement to repay it over 5 years scrapped
This new £15 billion support package is targeted towards millions of low-income households and brings the total cost of living support to £37 billion.
New temporary Energy Profits Levy on oil and gas firms will raise around £5 billion over the next year to help with cost of living, with a new investment allowance to encourage firms to invest in oil and gas extraction in the UK.

Millions of households across the UK will benefit from a new £15 billion package of targeted UK government support to help with the rising cost of living, the Chancellor announced yesterday.

The significant intervention includes a new, one-off £650 payment to more than 8 million low-income households on Universal Credit, Tax Credits and legacy benefits to be made in two tranches starting in the summer, with separate one-off payments of £300 to pensioner households and £150 to individuals receiving disability benefits – groups who are most vulnerable to rising prices.

Rishi Sunak also announced that the energy bills discount due to come in from October is being doubled from £200 to £400, while the requirement to pay it back will be scrapped. This means the vast majority of households will receive a £400 discount on their energy bills from October.

The new Cost of Living Support package will mean that the most vulnerable households in Scotland will receive over £1,000 of extra support this year.

To ensure there is support for everyone who needs it, Mr Sunak also announced a £500 million increase for the Household Support Fund. This brings the total Household Support Fund to £1.5 billion.

To help pay for the extra support – which takes the total direct government cost of living support to £37 billion – Mr Sunak said a new temporary 25% Energy Profits Levy would be introduced for oil and gas companies, reflecting their extraordinary profits. At the same time, in order to increase the incentive to invest the new levy will include a generous new 80% investment allowance. This balanced approach allows the government to deliver support to families, while encouraging investment and growth.

The Chancellor of the Exchequer Rishi Sunak said: ““I know that people in Scotland are anxious about keeping up with rising energy bills, which is why today we have introduced measures which will take the support for millions of the lowest income households over £1,000.

“As a nation we have a responsibility to help the most vulnerable, which is why this support is mostly targeted at people on low incomes, pensioners and disabled people. But we understand that all households in Scotland will be concerned about the rise in energy costs this Autumn, so every household is set to get £400 off their energy bills from October, with no repayments necessary.

“It is right that companies making extraordinary windfall profits from rising energy prices should contribute, and I’m introducing a temporary energy profits levy to help pay for this support, while still encouraging the investment that generates jobs in Scotland.”

Scottish Secretary Alister Jack said: “Global issues are causing real pressures in the cost of living for UK families. We understand how tough it is at the moment for many households, which is why the Chancellor has today announced a further £15 billion support package.

“A total of £400 per household towards fuel bills will help protect families from rising energy costs. Cash payments of £650 for low-income households on means tested benefits will target support at the most vulnerable in our society at this difficult time. This comes on top of our existing £22bn support package.

“Some of these measures will be paid for by a temporary levy on oil and gas companies – one which incentivises investment in the UK’s energy security.”

There is now more certainty that households will need further support, with inflation having risen faster than forecast and Ofgem expecting a further rise in the energy price cap in October.

So as part of the UK government’s targeted support, the Chancellor announced that around eight million of the lowest income households on Universal Credit, Tax Credits, and legacy benefits will receive an automatic £650 cost of living payment in two instalments via the welfare system this year.

Yesterday’s announcement is on top of the government’s existing £22 billion cost of living support which includes February’s energy bills intervention and action taken at this year’s Spring Statement including a £330 tax cut for millions of workers through the NICs threshold increase in July and 5p cut to fuel duty.

Energy Profits Levy

Surging commodity prices, driven in part by Russia’s war on Ukraine, has meant that the oil and gas sector have been making extraordinary profits. Ministers have been clear that they want to see the sector reinvest these profits in oil and gas extraction in the UK.

In order both to fairly tax the extraordinary profits and encourage investment, the Chancellor announced a temporary new Energy Profits Levy with a generous investment allowance built in. This nearly doubles the tax relief available and means the more investment a firm makes, the less tax it will pay.

The new Levy will be charged on oil and gas company profits at a rate of 25% and is expected to raise around £5 billion in its first 12 months, which will go towards easing the burden on families. It will be temporary, and if oil and gas prices return to historically more normal levels, will be phased out.

The new Investment Allowance, similar in style to the super-deduction, incentivises companies to invest through saving them 91p for every £1 they invest. This nearly doubles the tax relief available and means the more a company invests, the less tax they will pay.

The government expects the combination of the Levy and the new investment allowance to lead to an overall increase in investment, and the OBR will take account of this policy in their next forecast.

The Levy does not apply to the electricity generation sector – where extraordinary profits are also being made due to the impact that rising gas prices have on the price paid for electricity in the UK market, which has also been making extraordinary profits partly due to record gas prices but also due to how the market works.

As set out in the Energy Security Strategy the government is consulting with the power generation sector and investors to drive forward energy market reforms and ensure that the price paid for electricity is more reflective of the costs of production.

The Chancellor announced yesterday that the Treasury will urgently evaluate the scale of these extraordinary profits and the appropriate steps to take.

During the announcement, the Chancellor also set out the government’s strategy to control inflation through independent monetary policy, fiscal responsibility, and supply side activism – a plan he said that should see inflation come down and returning to its target over time.

Finance Secretary Kate Forbes has welcomed the short term action announced by the Chancellor of the Exchequer, but warned more support is needed for households and businesses as the cost of living crisis worsens.

Following calls from the Scottish Government, the UK Government has taken steps to ensure that cash grants, rather than loans, are provided to those on lowest incomes. Ms Forbes has also cautiously welcomed the decision to introduce a Windfall Tax on energy companies benefiting from significant profits but commented that it means Scottish industry is disproportionately funding interventions across the UK.

Responding to the Chancellor’s statement, Ms Forbes has said UK Ministers should have acted earlier and gone further to provide more support that would make a real long term impact, including following the Scottish Government’s lead by doubling the Scottish Child Payment to £20 per week – which is due to increase to £25 from late 2022 helping lift an estimated 50,000 children out of poverty in 2023-24.

Ms Forbes said: “Many households will be relieved to see the support belatedly announced today, but we still need a long term solution to the cost of living crisis and reassurance that the UK Government is going to tackle long term inequalities rather than provide one-off bursts of crisis support.

“Rather than listen to our plea for a comprehensive funding package that fully addresses the unprecedented rise in the cost of living and uses the full £30 billion of fiscal headroom, this piecemeal approach makes it highly likely that more support will be needed later when energy prices rise significantly in the autumn.

“There is also a severe lack of support for businesses – many of them are still struggling to recover from the pandemic and now face crippling increases in energy costs and the damaging impacts of Brexit on supply chains and the labour market. Without urgent economic support there is a real risk that the UK economy is heading for a recession.

“Inflation is at its highest levels in 40 years and the UK Government’s failure to fully invest in increasing incomes, tackling inequality and boosting economic competitiveness will only risk pushing households into further debt and poverty

“The UK Government has almost £30 billion of fiscal headroom, spending only half of this during a cost of living crisis does not go far enough, especially when a further £5 billion from the Windfall Tax will be raised.

“The introduction of a windfall tax is a start, but as a stand-alone measure this means Scottish industry is carrying the weight of UK-wide interventions.

“The removal of the £20 Universal Credit uplift last year was a hammer blow to hard pressed families and the Chancellor’s failure to restore it and increase it to £25 only places a disproportionate burden on the shoulders of those who need help most. The statement was also worryingly silent on public-sector pay with no related consequential funding, when the lowest paid need urgent assurance in the face of rising inflation.

“The refusal to reverse the National Insurance increase implemented in April and temporarily suspend VAT on household energy bills will also cost families hundreds of pounds annually at a time when their budgets have never been more squeezed.

“The Scottish Government has already taken action to support people, communities and businesses as much as possible, with almost £770 million per year invested in cost of living support. We have increased eight Scottish benefits by 6%, closer to the rate of inflation, and introduced a range of family benefits not available elsewhere in the UK.”

Commenting on the government’s cost of living support package announced today (Thursday), TUC General Secretary Frances O’Grady said: “Unions have repeatedly called for an Emergency Budget to help families, and a windfall tax on energy companies.

“The Chancellor should have acted far sooner after his inadequate Spring Statement. His dither and delay has caused unnecessary hardship and worry for millions.

“While today’s intervention is badly needed, we should have never been here in the first place.

“Years of attacks on wages and universal credit have left many households on the brink.

“The government still doesn’t have a plan for giving families long-term financial security.

“With energy bills rising 23 times faster than wages we urgently need to get pay packets rising and to pay universal credit at a permanently higher rate – not just a one-off boost.

“That’s the best way to protect livelihoods and to support the economy.”

Tennis Scotland provides advantage to youngsters in deprived communities

New partnership programme with UK charity

Tennis Scotland has partnered with ‘Rackets Cubed’ to enhance the lives of school children in deprived areas of the nation through an innovative tennis programme which aims to support fulfilment of academic potential whilst improving physical and mental wellbeing.

Rackets Cubed, a UK-registered charity currently operating South of the border, delivers integrated programmes comprising of racket sports, STEM education and nutritious meals as part of its weekly activities.

Founded in 2016, the organisation has a vision of ensuring that primary pupils perform to the best of their ability by benefiting from participation in sport, enhanced extracurricular lessons and an introduction to healthy eating: driven by evidence that active children perform better in school, whilst a healthy diet has been proven to have a positive impact on classroom behaviour.

Research suggests that children in disadvantaged areas are less likely to participate in physical activity outside of school, subsequently leading to issues such as low self-esteem and obesity which can impact their academic achievements and overall wellbeing.

Designed to provide stability and project sport as a positive vehicle for change in communities, Tennis Scotland launched pilot sessions of the Rackets Cubed programme in Glasgow yesterday, with pupils at St Paul’s Primary School in Shettleston alongside students at Antonine and Camstradden primary schools in Drumchapel, the first to benefit from the initiative.

The Drumchapel programme will see students continue their development outside of official school hours at Drumchapel Tennis Club; a facility that has been selected as an ‘aspirational’ venue to host the sessions, aiming to increase youngsters’ confidence in joining and participating in activities at local community clubs.

Capitalising on increased interest in tennis and substantial growth of club memberships in recent years, the governing body also plans to roll out the programme over the next 12 months to continue increasing the provision of tennis activities to underrepresented groups, having already engaged around 350 youngsters from socially deprived areas last year through the LTA SERVES initiative.

Blane Dodds, Chief Executive of Tennis Scotland, said: “Tennis Scotland’s mission is to Open tennis up, and this exciting programme will enable us to take tennis to more disadvantaged communities and use tennis the vehicle to raise wellbeing and attainment of young people.

“Over the last couple of years during the covid pandemic, many children have been less active and missed out on education. This exciting programme is a great opportunity to increase children’s physical activity, wellbeing and support extra education and nutrition resulting in a positive impact on the children.”

Geoff Newton CEO of Rackets Cubed: “Rackets Cubed is delighted to be partnering with Tennis Scotland to offer opportunities to young children from disadvantaged backgrounds to learn a new skill, and help open up tennis to a wider audience.

“Combined with additional tuition in a STEM subject, and a nutritious meal, all in an ‘aspirational’ location, we are delighted to launch the first programmes in Glasgow and look forward to working closely with Tennis Scotland to develop many more.”

Forth Neighbourhood Network meets online tomorrow evening

6pm via MICROSOFT TEAMS

FORTH Neighbourhood Network will meet online tomorrow evening at 6pm.

AGENDA

Welcome & Apologies
Notes of Meeting of 19^th January 2022 and matters arising (circulated)
Forth NN Neighbourhood Environmental Programme (NEP) HRA update – George Norval / David Delargy
Forth NN current Priority: Poverty, including food poverty update – Biddy Kelly, Response and Recovery Group
Community Grants Fund – review of the past year plus funding panel decisions
Any other Business
Dates of Next Meetings: 22^nd June 2022, 14^th Sept 2022, 14^th Dec 2022.

For further information please contact Elaine Lennon, North West Lifelong Learning Development Officer, telephone 529 5270, email Elaine.Lennon@edinburgh.gov.uk

Third sector hustings: Preventing Poverty for the People of Edinburgh

Be part of a conversation with some of the candidates standing for election in Edinburgh

Edinburgh’s Third Sector Interface (EVOC, Volunteer Edinburgh, Edinburgh Social Enterprise) and the Poverty Alliance invite you to be part of an conversation with some of the candidates standing for election on Thu 5 May.

The main focus of this event is the challenges arising from cost-of-living increases that are impacting people and communities across the City linked to:

the importance of a thriving voluntary sector
the benefits of an enterprising City
the need for wealth building within communities

Welcome & Introduction: Bridie Ashrowan, Claire Pattullo, Paul Wilson.

Panel Q&A:

Claire Miller, Edinburgh Greens candidate for City Centre
Vicky Nicolson, SNP candidate for Inverleith
Ross McKenzie, Labour candidate for Sighthill / Gorgie
Neil Ross, Liberal Democrats candidate for Morningside
Representatives from each of the political parties have been invited.

SUBMIT A QUESTION

Please submit any questions you have in advance, or if you are unable to attend the event to: comms@evoc.org.uk

ZOOM LINK:

The link will be sent out to everyone who has registered by 1pm on the day.

Employment support to improve lives

Further funding to provide a route out of poverty

Employability services to help those most at risk of long-term unemployment will receive up to £113 million of funding.

To deliver the ambitions set out in the National Strategy for Economic Transformation and the Child Poverty Delivery Plan, tailored services based on local needs will ensure the right help is given to ensure people are supported to move towards and into work.

The No One Left Behind approach – which includes the Young Person’s Guarantee – sees services funded through Local Employability Partnerships (LEPs) bringing together local government, Skills Development Scotland, Department for Work and Pensions, colleges, the third sector and other partners to provide support that meets both individual and labour market needs in each area. This is crucial to achieving shared aims around tackling poverty and inequalities.

The National Strategy for Economic Transformation aims to build a fairer and more equal society by ensuring economic transformation which tackles inequality, drives up working standards and improves pay. It also outlines how partnership working can support people into jobs by tackling labour market inequalities and unlocking Scotland’s economic potential.

Employment Minister Richard Lochhead said: “Redesigning services with the user in mind is part of the bold steps we’re taking to achieve the goals of the National Strategy for Economic Transformation.

“If delivering on our objectives involves change to get a better outcome for the people of Scotland, we won’t duck from that challenge.

“We have always been clear that No One Left Behind places people at the centre of employability services and support, to give them help tailored to their specific needs. I’m pleased that in 2022/23 we are able to invest up to £113 million to support those at risk of long-term unemployment.

“This investment will build on existing support to deliver more localised help around employability and skills to people most disadvantaged in the labour market. It will also align more closely with other local services in housing, justice, advice, and health.”

Read about the Tackling Child Poverty Delivery Plan here.

Persistent poverty levels ‘stable’

Latest Official Statistics published

Between 2016 and 2020, one tenth of people in Scotland were in persistent poverty after housing costs. Persistent poverty identifies individuals who live in relative poverty (have a household income of less than 60% of the UK median) for at least three years out of the last four.

Persistent poverty rates were similar for children and working-age adults (10%) and pensioners (11%). Over time, persistent poverty rates have been fairly stable for all age groups, except for children in the most recent period.

Persistent child poverty saw a relatively large drop compared to previous estimates, from 15% to 10%. This observed fall should be interpreted with caution as persistent poverty estimates do tend to fluctuate. So not all of this decrease is likely to reflect real change and will be due to a range of factors.

Some low income households will have benefitted from increased financial support during the pandemic. At the same time, reduced earnings and job losses may have resulted in a lower median income, leading to a fall in the poverty line, and a drop in the relative poverty rate.

Not everyone in poverty is in persistent poverty: More than a third of people in poverty move out of poverty each year. At the same time, a similar number of people who were not in poverty before enter poverty each year.

The persistent poverty report usually goes alongside the main poverty statistics publication Poverty and Income Inequality in Scotland. This will not be published this year due to the disrupted data collection during COVID-19 restrictions.

An analytical report will be published instead to explain the limitations of the most recent data. Users should note that the latest reliable figures are those previously published.

These figures are produced in accordance with professional standards set out in the Code of Practice for Official Statistics.

Reacting to the publication of new statistics on poverty in Scotland and across the UK, Poverty Alliance director Peter Kelly said: “In a compassionate society like ours, we believe in looking after one another and protecting each other from harm. But these new figures show that we are failing to put that compassion into practice.

“When the Chancellor raised Universal Credit by £20 a week, he lifted 400,000 children across the UK out of poverty. But when he cut that £20 lifeline, many of those children and their families will have been pulled back into poverty’s grip. It was an unjust and scandalous decision then, and its impact on people’s lives is becoming even clearer now.

“The Scottish Government’s actions to increase the Scottish Child Payment show what can be done when we make our compassion concrete and is a good example to build on. We need to make sure that the money gets to the people who need it, as soon as possible, and that wider action on transport, childcare and housing all ramp up in ambition to help us meet our child poverty targets.”

The full publications are available here:

Persistent Poverty in Scotland presents estimates of the proportion of people in Scotland who live in persistent poverty. The data come from the Understanding Society Survey, and the latest statistics cover the period from 2016 to 2020.

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

Poverty and Income Inequality in Scotland – analytical report provides information on the limitations of the most recent data for 2020/21 from the Department for Work and Pensions Family Resources Survey Households Below Average Income dataset.

This report and dataset are not official statistics. Users should note that the latest reliable figures are those previously published for 2019/20.

The latest estimates are unreliable as they are based on data collected during the first year of the coronavirus pandemic and associated restrictions. These affected the data collection and as a result, it was not possible to obtain a representative sample for Scotland. UK income and poverty figures are published on the same day by DWP.

Key poverty measures:

Relative poverty: A household is in relative poverty if its income is below 60 percent of the middle household income in the UK (the poverty threshold). Relative poverty is a measure of whether the income of the poorest households are keeping pace with middle income households across the UK.

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

Household income is adjusted for household size.

The poverty publications present poverty figures before and after housing costs. Before housing costs figures are a basic measure of household income from earnings and benefits.

After housing costs figures subtract spending on rents, mortgage interest payments and other unavoidable housing costs from this basic income. In Scotland, poverty statistics focus mainly on poverty after housing costs.

The poverty estimates in this summary refer to relative poverty after housing costs.

Schools: Another £520 million to help close poverty-related attainment gap

Scotland’s headteachers will receive more than half a billion pounds of secured funding over the next four years to help close the attainment gap.

Pupil Equity Funding (PEF) totalling £520 million will be distributed to schools in every council area to help headteachers put in place more support for children and young people.

Edinburgh’s share of PEF is over £7.86 million.

The funding has been confirmed for multiple years to provide more certainty for headteachers and allow for longer-term planning.

Education Secretary Shirley-Anne Somerville said: “Tackling the poverty-related attainment gap and giving every young person the chance to fulfil their full potential remains our priority, and we are investing an increased £1 billion through schools and local authorities over the course of this Parliament to support this ambition.

“Our headteachers and teachers know their pupils best and have told us that our measures are working. We are determined to ensure they are empowered to take the approaches that are right for the children and young people in their schools to help improve attainment.

“Our allocation of more than £520 million of PEF for the next four years will give headteachers the confidence and security they need to plan long term. However, we know schools can’t do this alone, and headteachers should work in partnership with each other, Education Scotland and their local authority, to agree the use of the funding.”

St Francis Primary School headteacher Margot MacAlister said: “Pupil Equity Funding has been key in allowing me to deliver my vision for the community I serve. From the beginning it has provided me with stability in terms of funding posts previously reliant on my devolved budget.

“This has allowed me to build purposeful and trusting working relationships with partners over time that bring a great richness to a child’s learning experience.

“Our nurture programme and now our EXCEL programme has become embed in the culture and ethos of the school and addresses the whole child now and in the future.”

Scottish Government launches latest child poverty delivery plan

Best Start, Bright Futures

Child poverty in Scotland is projected to fall to its lowest level in nearly 30 years as a result of the actions taken to date and commitments in the second Tackling Child Poverty Delivery Plan.

More than 60,000 fewer children could be living in relative poverty in 2023 compared to 2017, according to updated modelling.

Social Justice Secretary Shona Robison said a focus on long-term parental employment opportunities, strengthened social security and support to reduce household costs are at the heart of the new four year delivery plan, Best Start, Bright Futures.

In 2022-23 this work will be supported by investment of almost £113 million on top of funding already allocated to ongoing programmes.

Actions include:

Significantly increasing employment services with the aim of supporting up to 12,000 parents to enter and progress in sustainable and fair work through actions taken over the life of the Plan, with initial investment of up to £81 million in 2022-23 in employability support for parents
Increasing Scottish Child Payment from £20 to £25 when the benefit is extended to under 16s by the end of 2022. This means £1,300 of support per eligible child per year. It is five times more than originally asked for by campaigners and an investment of £671 million over the next two years
Delivering a new Parental Transition Fund to tackle the financial barriers parents face in entering the labour market, particularly over the initial period of employment, with an investment of up to £15 million each year
Taking immediate steps to mitigate the UK Government’s Benefit Cap as fully as possible within devolved powers, through Discretionary Housing Payments. This will support our priority families, in particular, who are disproportionately impacted by this policy

https://twitter.com/i/status/1507077314328285187

Ms Robison said: “I am proud that our actions of the past four years, together with those set out in this plan, are projected to deliver the lowest level of child poverty in Scotland in 30 years.

“We are taking immediate steps to put cash in the pockets of families – tackling the cost of living crisis and helping to lift thousands of children out of poverty in Scotland.

“Our package of five family benefits for low income families, including the increased Scottish Child Payment, will be worth over £10,000 by the time a family’s first child turns 6, and £9,700 for second and subsequent children.

“That is a difference of more than £8,200 for every eligible child born in Scotland in comparison to England and Wales – highlighting the unparalleled support offered by this government to children across the early years.

“We will also build on our investment in employment support for parents, through new skills and training opportunities and key worker support to help reduce household costs and drive longer term change.

“Our national mission to tackle child poverty is already giving more children the best start and a bright future. We are determined to meet our ambitious targets set for 2023-24 and 2030 and beyond, so that no children in Scotland are living in poverty. We know there is not a silver bullet and this cannot be done overnight.”

Scottish Government Minister and Scottish Green Party Co-Leader Patrick Harvie said: “This plan delivers on key commitments to tackle child poverty and inequality in the cooperation agreement between the Scottish Government and the Scottish Green Party.

“We welcome the actions being taken, particularly in mitigating the UK Government benefit cap and increasing the Scottish Child Payment which will provide major support to thousands of low income households.”

Reacting to the Scottish Government’s publication of its Child Poverty Delivery Plan, Peter Kelly, director of the Poverty Alliance said: “Child poverty is unjust and unnecessary. It’s a sign of Scotland’s commitment to compassion and justice that there are stretching targets to end it.

“A clear message from Poverty Alliance members ahead of the new plan was to ‘put money in people’s pockets’. Commitments to increase the Scottish Child Payment to £25 by the end of this year and to mitigate the unjust benefit cap are therefore welcome. With one in four children in Scotland still growing up in the grip of poverty, and the rising cost of living meaning that many more families are being swept into hardship every day, this new plan needed to set out how we can do more to protect people from harm.

“On the back of the Chancellor’s failure of a Spring Statement yesterday, we needed to see real commitments that will make a positive impact on the lives of people on low incomes. Alongside the mitigation of the benefit cap, the expansion of employability support that provides tailored support to families can help to make that impact.

“However, there is significant scope to go much further to ensure that cash makes it to those who most need it. There is clear evidence that increasing the Scottish Child Payment to £40 would have an even greater impact in unlocking families from poverty and take us closer to the target of eradicating child poverty by 2030.

“The rising tide of poverty sweeping across the country demands that the actions contained in this Plan are not the peak of our ambitions, but merely a start. Our efforts cannot and must not cease.”

best-start-bright-futures-tackling-child-poverty-delivery-plan-2022-2026 Download

Spring Statement: Lack of support will see 1.3 million people pushed into absolute poverty next year

In his Spring Statement, the Chancellor promised to support families through the cost of living crisis today, and to cut their taxes in the future. But his failure to deliver on both of these means that absolute poverty is expected to rise by 1.3 million people next year, while only one-in-eight workers will see actually see their tax bills fall by the end of the parliament, according to the Resolution Foundation’s overnight analysis of Spring Statement 2022 today.

Inflation Nation shows that faced with an unprecedented squeeze on family’s household finances and a significant boost to the public finances, the Chancellor opted for a big but poorly targeted policy package focused on partially offsetting some of the big tax rises he’d previously announced, rather than on supporting those families hit hardest by the cost of living crisis.

Key findings from the overnight analysis include:

Families face £1,100 income losses. The scale of the cost of living squeeze is such that typical working-age household incomes are to set to fall by 4 per cent in real-terms next year (2022-23), a loss of £1,100, while the largest falls will be among the poorest quarter of households where incomes are set to fall by 6 per cent.
Absolute poverty rises by 1.3 million. The scale and distribution of the cost of living squeeze, coupled with the lack of support for low-income families, means that a further 1.3 million people are set to fall into absolute poverty next year, including 500,000 children – the first time Britain has seen such a rise outside of recessions.
Tax rises for seven-in-eight workers. Considering all income tax changes to thresholds and rates announced by Rishi Sunak, only those earning between £49,100 and £50,300 will actually pay less income tax in 2024-25, and only those earning between £11,000 and £13,500 will pay less tax and National Insurance (NI). Of the 31 million people in work, around 27 million (seven-in-eight workers) will pay more in income tax and NI in 2024-25.
A £11,500 wage loss. With real wages in the midst of a third major fall in a little over a decade, average weekly earnings are on course to rise by just £18 a week between 2008 and 2027, compared to £240 a week had they continued on their pre-financial crisis path. This lost growth is equivalent to a £11,500 annual wage loss for the average worker.
A parliament of pain. Typical household incomes are forecast to fall by 2 per cent across the parliament as a whole (2019-20 to 2024-25), making this parliament the worst on record for living standards, beating the 1 per cent income fall over the course of the 2005-05 to 2010-11 parliament.
Rapid fiscal consolidation. The decision to bank much of the borrowing windfall set out by the OBR sees borrowing set to fall rapidly from 14.8 per cent of GDP in 2020-21 to 1.3 per cent of GDP in 2024-25 – lower than it was expected to reach pre-pandemic. This increases the Chancellor’s fiscal headroom at the end of the parliament from £18 billion to £28 billion, the equivalent of a further 4 to 5p cut in the basic rate of income tax.

Torsten Bell, Chief Executive of the Resolution Foundation, said: “In the face of a cost of living crisis that looks set to make this Parliament the worst on record for household incomes, the Chancellor came to the dispatch box yesterday promising support with the cost of living today, and tax cuts tomorrow. Significant measures were announced on both counts, but the policies do not measure up to the rhetoric.

“The decision not to target support at those hardest hit by rising prices will leave low-and-middle income households painfully exposed, with 1.3 million people, including half a million children, set to fall below the poverty line this coming year.

“And despite the eye-catching 1p cut to income tax, the reality is that the Chancellor’s tax changes mean that seven-in-eight workers will see their tax bills rise. Those tax rises mean the Chancellor is able to point to a swift fiscal consolidation and significant headroom against his fiscal rules.

“The big picture is that Rishi Sunak has prioritised rebuilding his tax-cutting credentials over supporting the low-to-middle income households who will be hardest hit from the surging cost of living, while also leaving himself fiscal flexibility in the years ahead. Whether that will be sustainable in the face of huge income falls to come remains to be seen.”

Inflation-nation Download