Tag: Poverty

Real Living Wage increases to £9.50 per hour

Over 250,000 people working for almost 7,000 real Living Wage Employers throughout the country are set for a vital pay boost as the new Living Wage rates rise to £9.50 across the UK (20p increase), and £10.85 in London (10p increase), supporting workers and families through the pandemic. 

The Living Wage rates are the only rates independently calculated based on what people need to live on. 

Over 800 more employers have accredited with the Living Wage Foundation since the start of the pandemic, with major new names including Tate and Lyle Sugars, Network Rail, the All England Lawn Tennis Club (The Championships, Wimbledon) and Capital One.  

These organisations join a network of almost 7,000 employers across the UK, including two-fifths of the FTSE 100 companies, household names including Aviva, Nationwide, Everton FC, and Brewdog, as well as thousands of small businesses, who are choosing to pay the real Living Wage to ensure all staff earn a wage that meets the real cost of living, and covers everyday needs.   

Research conducted by Cardiff Business School has demonstrated the significant impact of the Living Wage campaign since the start of the pandemic.

Over 250,000 workers have benefitted from an additional £200 million since the start of lockdown, including 130,000 key workers. Since 2011 over £1.3bn in extra wages has gone to workers and families through the Living Wage.  

The UK rate is 78p per hour more than the government minimum wage (for over 25s) and the London Living Wage is £2.13 per hour higher. 

A full-time worker paid the new £9.50 real Living Wage will receive over £1,500 in additional wages annually compared to the current Government minimum. For a full-time worker in London this figure rises to over £4,000.
 
The announcement comes as new research by the Living Wage Foundation has demonstrated the scale of low pay during the pandemic, with 5.5 milion jobs (20.3% of employee jobs) still paying less than the real Living Wage. 

Northern Ireland had the highest proportion of jobs paying below the Living Wage (25.3%) and Scotland the lowest (15.2%). 


 Laura Gardiner, Living Wage Foundation Director, said: “It’s an incredibly challenging time for us all, but today’s new Living Wage rates will give a boost to hundreds of thousands of UK workers, including thousands of key and essential workers like cleaners, care workers, and delivery drivers who have kept our economy going.  

“Since the start of the pandemic employers have continued to sign up to a real Living Wage. During Living Wage Week it’s right that we celebrate those employers that have done right by workers and families, providing them with much needed security and stability even when times are hard. These are the employers that will allow us to recover and rebuild from this crisis.”  

The Archbishop of York, the Most Revd Stephen Cottrell, said: “As our leaders continue to grapple with managing this pandemic, it is critical that all of our workers are kept in the heart of all quarantine management and recovery plans.

“Throughout this pandemic, we have depended on those of us who have selflessly put their work ahead of their own health and wellbeing for the continued functioning of our society.

“Over the past few months, we have recognised and applauded their fantastic work; now, this Living Wage Week, it is time we do the morally right thing and follow this recognition with well-deserved reward, paying them what they need to live. It is right to be paid a fair day’s wage.” 

Gerald Mason, Senior Vice President of Tate and Lyle Sugars, said: “Tate & Lyle Sugars is proud to have been formally accredited as a Living Wage employer.

“It has been the cleaners, security guards and catering staff who have kept our factories clean, safe and well-fed over the last 6 difficult months. We’re pleased to recognise their value and role in helping us feed the nation.” 

Loraine Martins, Network Rail’s Director of Diversity and Inclusion, said: “I am delighted that Network Rail has been accredited as a Real Living Wage employer. While we already pay our 41,000 employees the Real Living Wage, official accreditation by the Living Wage Foundation means that thousands of rail workers in our supply chain will also benefit. 

“The varied work that rail staff carry out on our trains, in our stations and on our tracks has never been more important than in recent months, where they have helped to keep Britain connected in challenging times by running a safe and reliable service for key workers and others relying on the railway.

“Our work with contractors and the Living Wage Foundation will ensure that railway staff are paid appropriately for their vital work.” 

Owen, Team Member of TTK Confectionary Nottingham, said: “The Real Living Wage has allowed me to pay my bills and save for the first time.

“I am saving for driving lessons and a car. I feel valued and appreciated and that my hard work and dedication has been recognised through the introduction of the Living Wage.” 

Oliver, a delivery rider at e-cargobikes.com, said: “Earning a Living Wage means I am able to support a household, including my partner, and takes a huge load from my shoulders.

“To be employed by an organisation that not only treats people with respect but backs that up with decent pay means that I feel valued in a way that no other flexible work has provided.

“The psychological benefit of this will extend further than me and reminds me that I work for a company that sees further than the person as an employee, but also sees their capacity to contribute to wider society when treated fairly.” 

Crisis Grants soar during lockdown

77% increase as more people on low incomes seek support

The amount paid out in crisis grants to people in need increased by more than three quarters in the early stages of lockdown, latest figures show.

The Scottish Welfare Fund awarded £5.2 million in crisis grants between April and June 2020, up 77 per cent on the same period last year.

The number of crisis grants rose by 63 per cent over the quarter, peaking in April when twice as many were awarded than in April 2019.

The most common reason given by applicants, covering 45 per cent of cases, was that they had exhausted their usual income and benefits.

Social Security Secretary Shirley-Anne Somerville said: “These latest figures demonstrate that we were right to ensure our Scottish Welfare Fund was increased  – just one of many actions taken to ensure there is additional financial support to people coping with the economic impacts of coronavirus  (COVID-19).

“The leading reason people apply for emergency help is that their benefits or other income has been spent.

“While the Scottish Government works to improve provision for children and families facing poverty, we continue to have to spend money to protect the most vulnerable in our communities from UK benefit cuts.

“We are introducing the Scottish Child Payment to tackle child poverty head on, opening for applications next month, with the first payments to start from February 2021. Together with the Best Start Grant and Best Start Foods, this will provide over £5,200 of financial support for families by the time their first child turns six – and more than £4,900 for second and subsequent children.”

Scottish Welfare Fund Statistics: Update to 30 June 2020 can be found here.

£30million package to support Scots facing hardship

A £30 million package of funding is being made available to local authorities to support people facing financial hardship as a result of coronavirus (COVID-19), including money to provide free school meals over the school holidays.

Local authorities will be given flexibility to use £20 million, previously held in reserve for the Scottish Welfare Fund, to support people in their communities.

A further £10 million has been made available so councils can continue providing free school meals through the winter breaks with future funding confirmed to extend support over Easter.

Cabinet Secretary for Social Security and Older People Shirley-Anne Somerville said: “No one should be struggling to put food on the table, keep the lights on, or stay warm at home in the midst of this pandemic.

“With continuing uncertainty around Brexit and the furlough scheme being scaled back we are doing all we can to ensure the right support gets to people at the right time in the right way.

“We know a healthy meal during the school day helps children to learn – but right now it’s an essential to support families at such a difficult time. This money will offer nutritious free meals for children or allow families to get food they desperately need.

“Those experiencing financial hardship can currently apply to the Scottish Welfare Fund and seek advice on which benefits they can receive. However, this will not be suitable for everyone: some people are not eligible for crisis grants or already receive the full benefits they are entitled to, while others may need immediate support with food and essentials.

“We are giving local authorities greater flexibility over funding held in reserve for the Scottish Welfare Fund, to support local action and address people’s needs. This may include supplementing local budgets for the Scottish Welfare Fund to meet demand, providing financial support to tackle food insecurity or to meet fuel costs, or boosting local funding for Discretionary Housing Payments.

“Additionally we are making further resource available to continue the provision of Free School Meals over forthcoming holidays, including Easter.”

Chair of the Poverty and Inequality Commission Bill Scott, said: “We welcome this much needed additional help for low income families and individuals. The funding for Free School Meals during the Christmas, February and Easter breaks will come as a great relief for many hard pressed parents.

“We would urge local authorities to use the flexibility given to them by Scottish Government to ensure that every penny of extra help available gets to those who need it most.”

COSLA’s spokesperson for Resources Councillor Gail Macgregor, and spokesperson for Community Wellbeing Councillor Kelly Parry said: “The impacts of the virus have not been felt equally across society and we welcome this funding which can be used flexibly by councils, enabling them to provide more support for those who need it most in our communities.

“Local authorities will deploy it in ways that best meets local circumstance, to provide the most effective support to those experiencing financial hardship, for example through grants, addressing food insecurity, or support for fuel costs.

“We know that as winter arrives and the furlough scheme draws to a close unfortunately more adults and children are likely to need assistance to ensure they are fed and warm. Local Government is the anchor in our communities and is able to provide advice, support and assistance to those that need it.”

Years of austerity have had a harrowing impact on vulnerable families in Scotland

  • Families’ needs are escalating while support services are diminishing, new research reveals
  • Children’s charities call on Scottish Government to invest in family support without delay

Years of austerity have had a harrowing impact on vulnerable families in Scotland with some now facing destitution, reveals NSPCC Scotland and Barnardo’s Scotland research published today.

The report, Challenges from the Frontline – Revisited, highlights the devastating impact of the rollout of welfare reform on children and their families and the effects of local government funding cuts on the support available to them.

The research, a snapshot of life before Covid-19, describes rising need in the face of lessening resource, with some families struggling to obtain adequate food, secure housing and basic necessities. Despite long-standing commitment by the Scottish Government to early intervention and parenting support, the research found that too many families were coming to services already at crisis point.

Service managers told researchers that welfare reform had financially punished a whole section of the population.

One said: “…because so many of our families are on universal credit, that does not allow them to have a standard of living that meets the needs of those adults and children within the household. It simply does not.”

Another said: “It’s the poverty and disadvantage that we see now. It was always there, but it’s certainly exacerbated by the welfare reform over the past few years. The rise of foodbanks here is massive. Families use them on a regular basis and you can see that, families who come to us and are really struggling.”

NSPCC Scotland and Barnardo’s Scotland are now calling on the Scottish Government to press ahead, as a matter of urgency, with the Independent Care Review’s vision of making intensive family support available to all who need it.

The review’s Promise report sets out a blueprint of how this should be done.

The children’s charities also say the Scottish Government must articulate a clear vision for family income in Scotland, and set out how – within the current levers available – it will ensure that all families have enough money to live with dignity.

Today’s report compares findings from research carried out with family support services in Scotland in 2013 and 2019. It concludes that in the intervening period severe hardship has affected parents’ mental health and family relationships, so that those now being referred have more complex difficulties and greater needs.

This is amid a landscape of local authorities and other public bodies continuing to face financial challenges. The research found evidence of family support services closing or being offered on a far more limited basis than had been the case in 2013.

Matt Forde, NSPCC Scotland head of service, said: “Our research reveals that families were facing destitution, isolation and mental health struggles before the Covid-19 pandemic began.

“We found that against a backdrop of years of austerity there was escalating need for help from families who were struggling with more complex problems, being met with less support than before.

“We know that adverse and traumatic experiences in childhood can have a profound impact on a person’s life.

“And it is crucial this unacceptable situation, now compounded by the Covid-19 crisis, is addressed with a matter of urgency.”

Martin Crewe, Director of Barnardo’s Scotland, said: “Supporting vulnerable families mitigates social inequality and improves children’s life opportunities.

“The Coronavirus crisis provides a huge opportunity to make meaningful, sustainable, transformative change. We need to harness the desire to do things differently, to reach out to families with a strengthened social safety net to prevent longer term difficulties developing in young people’s lives.

“The Independent Care Review’s Promise has given us a blueprint for family support and    we must deliver on this without delay.”

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One million Scots on precipice of poverty

One in six live ‘precarious and insecure’ lives

Scotland must show “bolder ambition” if it is to meet targets for tackling child poverty, a new report by the Joesph Rowntree Foundation (JRF) has warned.

Over one million Scots – one in six people – are living ‘precarious and insecure’ lives, according to JRF’s latest Poverty in Scotland annual report – and the situation is likely to become even more critical with the ongoing cornavirus and the imminent end of the furlough scheme this month.

Child poverty now stands at 24% – almost one in four of our children now lives in poverty. The Scottish Government’s target is to reduce this figure to 18% or less by 2023 – 24 -but unless there is radical action this target is unlikely to be met.

JRF’s associate director for Scotland Jim McCormick, who also chaired Edinburgh’s Poverty Commission, said we are at a “crucial moment”.

“The decisions we make will determine whether we reach our ambitious child poverty targets by the middle of the next parliament,” he said. “As the shape of our economy changes, it is vital to do all we can to protect people’s jobs, homes and living standards, so more families are not pulled into poverty.”

The JRF report calls on the Scottish Government to be more ambitious.

A Scottish Government spokesperson said the government is ‘absolutely committed’ to tackling child poverty and said initiatives including Scottish Child Payments, Best Start Grants and Best Start Foods are evidence of this. The spokesperson called for the UK Government to match Scotland’s ambition.

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Give poor kids a chance

Education Vice Convener Cllr Alison Dickie writes about the pressing issue of child poverty in Edinburgh:

Let’s talk about stigma, even ‘poor kids’ and how it fuels inequality.

Posh pickles and peppered crackers.  Years ago, as a young family down Glasgow way, we made some kind soul feel good when they gifted us an exotic hamper.  At the time, I remember thinking that it must have been worth about £50, money that could have bought the school trousers our sons needed. 

This, and the wider experience of being worried about the next penny, our reliance on housing benefit, and the debt that became a problem, has given me some understanding about the complexity of poverty today.

Lockdown, and its significant impact on lives, has helped many others better understand how we can be just one life change or support network away from becoming financially vulnerable.

We live in an affluent city but there’s deep inequality, where 23% of our children live in poverty – as high as one in three in some areas.  And these children and families struggle to get the smallest and most basic of items, never mind homes in this city of shocking rents and house prices.  Contrary to popular opinion, 66% of these children come from families where at least one parent works.

In my own classrooms, there was the period stained skirt not to be forgotten, and the PE kit that was never coming out that wash. 

And as Vice Convener of Education, I still remember the pupil who shared her family’s shame of walking through the streets to their homeless accommodation, bin bags of belongings clutched in their hands.

Pickled gifts are nice and food provision is vital, but they won’t end child poverty.  And neither will a mindset that continues to see the deficit of ‘poories’ and the ‘vulnerable’, rather than the strengths that every child and their family can bring to the future of our city if we get alongside them for the long haul.

Sometimes we recreate inequality.  Think of the bulging schools we deem the best, often mistaking levels of academic performance for loaded advantage, or our hesitancy to sit down, learn and work with anyone. 

What too of the postcodes judged, or those loud, already empowered, voices who too heavily influence decisions?  And those annual SQA results, the prominence given to them when we say we equally value the strengths and qualifications of every young person?

Next week, the Edinburgh Poverty Commission will launch its findings, and their report will inform the Council’s second Child Poverty Action Plan. 

Education, in its most holistic sense, is key, from the equity framework that increasingly informs practice across our schools, to helping families find the benefits to which they are entitled through income maximisation, and the mentoring and wraparound support too. 

This, and building a stigma-free environment that supports everyone, from a focus on nurture and wellbeing, to digital devices for all, and the roll out of 1140 early years places to help families back to work. 

So, ‘All I am saying, is give every child a chance!’

Community Wealth Building: Zoom event

Dear Colleagues

Please find attached a zoom invitation to a meeting looking at Community Wealth Building.

The meeting will be hosted by Lesley Hinds, Chair of North Edinburgh Arts, with guest speaker Councillor Joe Cullinane, Leader of North Ayrshire Council. Please find attached a link to North Ayrshire’s Community Wealth Building strategy for information prior to the discussion.

https://www.north-ayrshire.gov.uk/Documents/nac-cwb-strategy-brochure.pdf

I this is of interest, and that you will be able to join the discussion on the 22nd. No registration is needed, simply use the link in the attachment, however it would be useful if you can reply to me in advance if you are going to attend to give me an idea of numbers.

Yours sincerely

Kate Wimpress / Director

North Edinburgh Arts, 15a Pennywell Court, EH4 4TZ        

NEA North Edinburgh Arts is inviting you to a Community Wealth Building meeting, by Zoom.

Join Zoom Meeting
https://us02web.zoom.us/j/9661004253

Meeting ID: 966 100 4253

The long shadow of deprivation

Research highlights England’s local councils with the lowest social mobility opportunities

The effect of deprivation in dozens of English local authorities is now so persistent that some families face being locked into disadvantage for generations unless the right action is taken, a new report shows today.

In the most detailed study of regional social mobility ever conducted in the UK, the report from the Social Mobility Commission identifies local councils with the worst and the best social mobility in England.

In the “coldest spots” those from disadvantaged backgrounds, entitled to free school meals, have little chance of making a better life for themselves or their children. They also earn much less than their more affluent peers.

These areas, which range across England, include:

  • Chiltern
  • Bradford
  • Thanet
  • Bolton
  • Wolverhampton
  • Kingston-upon-Hull
  • Fenland
  • Mansfield
  • Walsall
  • Gateshead
  • Kirklees
  • St Helens
  • Dudley
  • Bolton
  • Wigan

Individuals aged 28 from disadvantaged families in these councils earn on average just over half the amount of those from similar backgrounds in the most mobile areas. They also earn much less than those of the same age from more affluent families living nearby.

Steven Cooper, interim co-chair of the commission said: “These findings are very challenging. They tell a story of deep unfairness, determined by where you grow up. It is not a story of north versus south or urban versus rural; this is a story of local areas side by side with vastly different outcomes for the disadvantaged sons growing up there.“

Areas with high social mobility, where those from poorer backgrounds earn more and the pay gap with those from affluent families is smaller include:

  • Forest Heath
  • West Oxfordshire
  • South Derbyshire
  • Cherwell
  • Kingston upon Thames
  • South Gloucestershire
  • Tower Hamlets
  • North Hertfordshire
  • Eden

The research, carried out by the Institute for Fiscal Studies (IFS) and UCL Centre for Education Policy and Equalising Opportunities (CEPEO), links educational data and HMRC earnings for the first time to identify young sons from disadvantaged families – those entitled to free school meals. The sons who were born between 1986 and 1988 and went to state schools in England, were followed from aged 16 to 28.

The results, covering around 320 local councils in England and 800,000 young adults, show a postcode lottery for disadvantaged people. In areas with high social mobility, disadvantaged young adults earn twice as much as those with similar backgrounds in areas with low social mobility – on average, over £20,000 compared with under £10,000. Annual earnings from this group range from £6,900 (Chiltern) to £24,600 (Uttlesford).

Councils with the lowest earnings for disadvantaged individuals include:

  • Bradford
  • Hyndburn
  • Gateshead
  • Thanet

But they also include:

  • West Devon
  • Sheffield
  • Malvern Hills
  • Kensington and Chelsea.

Those with the highest earnings include:

  • Broxbourne
  • East Hertfordshire
  • Forest Heath
  • Havering
  • Uttlesford
  • Wokingham

But those from poor backgrounds also face unfairness on their doorstep. Pay gaps between the most and least deprived individuals in local authorities with the poorest social mobility are 2.5 times higher than in areas of high social mobility.

Education, often blamed for social mobility differences, is only part of the answer. In areas with high social mobility, gaps in educational achievement account for almost the entire pay difference between the most and least advantaged sons. On average it accounts for 80% of the difference.

However, in local authorities where social mobility is low it is much harder to escape deprivation. In such areas, up to 33% of the pay gap between the highest and lowest earners is down to non-education factors, like local labour markets and family background.

Disadvantaged workers are restricted by factors including limited social networks (fewer internships); inability to move to more prosperous areas; limited or no financial support from family; less resilience to economic turbulence due to previous crisis such as 2008 financial crash and less developed soft skills.

The commission is now urging regional and community leaders to use the findings to help draw up tailored, sustained, local programmes to boost social mobility, building on the approach in some Opportunity Areas.

The commission will also ask the government to extend its current Opportunity Areas programme – which gives support to 12 councils – to include several more authorities identified as the areas with the most entrenched disadvantage.

Professor Lindsey Macmillan, Director of CEPEO at UCL and Research Fellow at IFS said: “This new evidence highlights the need for a joined up-approach across government, third sector organisations, and employers.

“The education system alone cannot tackle this postcode lottery – a strategy that considers the entire life experience, from birth through to adulthood, is crucial to ensuring fairer life chances for all.”

Laura van der Erve, Research Economist at IFS and co-author of the report, said: “Not only do children from disadvantaged backgrounds have considerably lower school attainment and lower adult earnings than their peers from more affluent backgrounds, we also find large differences in the outcomes of children from disadvantaged backgrounds across the country.

“This highlights that children’s opportunities in England are still defined by both the family they were born into and the area they grew up in.”

Key findings

  • Social mobility in England is a postcode lottery, with large differences across areas in both the adult pay of disadvantaged adults, and the size of the pay gap for those from deprived families, relative to those from affluent families.
  • Disadvantaged young adults in areas with high social mobility can earn twice as much as their counterparts in areas where it is low – over £20,000 compared with under £10,000
  • Pay gaps between deprived and affluent young adults in areas with low social mobility are 2.5 times larger than those in areas with high social mobility.
  • In areas of low social mobility, up to 33% of the pay gap is driven by family background and local market factors, over and beyond educational achievement.
  • Characteristics of the coldest spots: fewer professional and managerial occupations; fewer outstanding schools; higher levels of deprivation and moderate population density.

The Social Mobility Commission is an independent advisory non-departmental public body established under the Life Chances Act 2010 as modified by the Welfare Reform and Work Act 2016. It has a duty to assess progress in improving social mobility in the UK and to promote social mobility in England.

New report highlights the impact of Covid-19 on affordable credit providers

New research by Community Finance Solutions (CFS) at the University of Salford and Carnegie UK Trust has highlighted the impact that COVID-19 is having on affordable credit providers across England, Scotland and Wales. 

Fear and Loaning – The Impact of Covid-19 on affordable credit providers serving financially vulnerable customers was published yesterday.

More than 60 Credit Unions and Community Development Finance Institutions (CDFIs) in England, Scotland and Wales took part in the study, which asked about the impact of Covid-19 on demand; lending volume; income; liquidity; viability, and confidence.

They reported a decline in the number of people seeking loans and a reduction in the size of loans being sought; a rise in the number of customers seeking payment holidays on their loans; and an increase in saving deposits.

Providers have furloughed staff and closed branches to help them deal with the impact of the pandemic. Some have adapted their business models, increasing the use of digital tools and introducing new products.

Those providers with the smallest average loan amounts (under £1,000) appear to have been most adversely affected by Covid-19, with a higher likelihood of furloughing staff, closing branches and of using government support schemes.

They are also less confident and more likely to forecast breaches of regulatory ratios or covenants and inability to meet short-term costs. These providers are the most likely to serve the most vulnerable and financially excluded.

There are likely to be a range of complex reasons behind the drop in the demand for credit. Positively, it may be because people have had support through other channels set up in response to the pandemic, such as the Job Retention Scheme or an interest free overdraft.

There have also been fewer opportunities for consumption during the crisis. Alternatively, some people may have not sought a loan from an affordable credit provider because their financial position has worsened and they may have to take other action, such as borrowing from family and friends or going without an important purchase.

There is concern that household finances will come under severe pressure as financial support interventions introduced in response to COVID-19 taper off and unemployment rises.

Affordable credit providers have a crucial role to play in supporting families through these difficult times, but this new research by the Trust and CFS shows that these providers are themselves vulnerable to the pandemic.

It will be essential that the affordable credit sector is supported to sustain and scale during this challenging period, so that it is able to support families and communities in the months ahead.

The report is available here.

Pål Vik, Director, Community Finance Solutions said: “This research report finds that the short-term effects of Covid-19 are more acutely felt by those lenders targeting low-income consumers.

“The findings underline the needs for ongoing research and data collection to inform interventions to preserve the access to affordable credit for those that need it the most.”

Sarah Davidson, Chief Executive, Carnegie UK Trust said: “Affordable credit providers have a vital role to play in helping disadvantaged communities cope with Covid-19 and rebuild resilience afterwards.

“This research highlights the need to continue to monitor the impact of the pandemic on affordable credit providers, and for the sector to receive the support that it needs to sustain and scale, ensuring that it can support those who are financially vulnerable.”

Sasha Romanovich, CEO, Fair4All Finance said: “Many more people in the UK will find themselves in vulnerable circumstances and the need for fair and affordable credit is likely to grow significantly over the coming months, not least as some high cost providers fail or withdraw from the UK market place.

“Fair4All Finance have a role as a catalyst to create a thriving and sustainable affordable credit sector, and we welcome this research.”

Michael Sheen, actor and social activist said: “It is vital that affordable lenders come through the current stage of the crisis to be able to support financially vulnerable consumers in the medium to long term.

“We need all those people with a voice – councils, housing associations, the third sector and the media – to highlight to those borrowers that often need access to small sums of money that fair credit is out there, at a fair price. ”

The Carnegie UK Trust has also recently published The 10% solution: How to make affordable credit more available to those who need it most as a short and full report.

This research examines the levels of high cost credit use and the provision of affordable credit across seven Scottish local authorities, reveals the gap between demand and appropriate supply, and puts forward a range of interventions available to local authorities that can support affordable credit providers and make a significant difference to the lives of low income individuals in their areas.

Increasing the market penetration of affordable credit providers in these seven areas to 10% of demand could save low income households nearly £5m a year.

While the research fieldwork for this report took place before the COVID-19 pandemic, it demonstrates the need for affordable credit, and the importance of supporting a resilient sector which can provide for financially vulnerable consumers in the years ahead.

Families to be alerted to additional financial support

A first for social security in Scotland

The Scottish Government is to actively inform families that they may be eligible for Best Start Foods and the Best Start Grant.

Information obtained from DWP and HMRC will allow Social Security Scotland to identify people who are on certain benefits or tax credits and have children of the right age. Social Security Scotland will then write to an estimated 22,000 families before the end of August inviting them to apply.

The letters are aimed at increasing take up of all financial support families are entitled to as part of the Scottish Government’s benefit take-up strategy and the wider co-ordinated approach to helping families who are under even more financial pressure due to the coronavirus (COVID-19) pandemic.

This important new proactive approach to maximising benefit uptake is a first for social security in Scotland.

Families already receiving qualifying UK benefits and tax credits will receive these invites. Those who currently don’t receive such support but think that they may be eligible are still encouraged to find out if they too are entitled to access Scottish benefits.

Social Security Secretary Shirley-Anne Somerville said: “Social security is a human right and an investment in the people of Scotland. Encouraging individuals to claim the financial assistance they are entitled to is a duty of government and a social responsibility. We are committed to making sure that people get all of the money that they are entitled to – to help maximise incomes and tackle poverty.

“The economic impacts of the pandemic are pushing thousands of people further into hardship so it’s important families are informed about the support available to them.

“This unique direct marketing of benefits complements the Scottish Government’s wider efforts to help parents during this challenging time. We must do all that we can to eradicate child poverty and make Scotland the best place in the world to grow up.”