Challenge Poverty Week

Challenge Poverty Week

17 – 23 October

More than 900,000 people in Scotland live in low income households – in a rich country like ours this is unnecessary and unacceptable.

Challenge Poverty Week is an opportunity for you to raise you voice against poverty and show what is being done to tackle poverty across. Organisations large and small supported Challenge Poverty Week last year, and we hope even more get behind it this year.

to bring to public attention the reality of poverty in Scotland;
to the show the impact of poverty on individuals and communities and to address the sterotypes that exist about poverty;
to highlight what is being done to address poverty (particularly by communities themselves);
and to highlight the continuing challenges that we face in addressing poverty

To achieve this organisations across Scotland will be organising events, running community activities, meeting with politicians to discuss their concerns.

Through all these focused activities we want to show that there is nothing inevitable about poverty. Not only are many people and organisations addressing poverty right now, but there is far more that we can do in the future to make a bigger impact.

John Dickie, Head of Child Poverty Action Group Scotland, said: “If we are serious about ending poverty in Scotland its vital that we build the public support needed to make real change happen. Challenge Poverty Week is a great opportunity to work together to highlight the damage that poverty wreaks and create the pressure needed for real action to end it.”

The City of Edinburgh Council is supporting the week. In his Leader’s Report published yesterday, Council Leader Cllr Andrew Burns said: “Tomorrow, 17 October, marks the start of the national Challenge Poverty Week. A number of events and activities are being held locally to coincide with it.

“In September, the Council agreed to adopt a set of pledges to challenge the stigma that can so often be associated with living in poverty. Part of the ‘Stick Your Labels‘ campaign, these pledges reinforce that poverty is not inevitable and commit organisations to setting out what they will do to help.

“In shaping the deal, we want to build on our strengths across the region, whilst tackling persistent inequality and other constraints that threaten to hold us back. If successful, we could potentially unlock an additional £3.2bn worth of private sector investment.”

The city council, having just signed up to the Stick Your Labels anti-stigma pledges, will be highlighting its work on tackling poverty, and that of its partners, during Challenge Poverty Week 2015.

There is a varied programme of events over the week, including Councillor visits to food poverty projects, the launch of the Edinburgh Equalities and Rights Network, Fairer Scotland conversations being run through third sector organisations, additional welfare advice sessions and staff events.

The Lord Provost, as President of Edinburgh’s independent social justice charity, the OneCity Trust, will also visit Bridgend Inspiring Growth, a project grant-funded by a the Trust to tackle the impacts of poverty through learning, eating and exercise. It is hoped that these activities will raise awareness in the city, where one in five families are experiencing poverty right now.

For further information visit

http://povertyalliance.org/challenge_poverty

ChallengePovertyWeek_Leaflet_2015

Closing the gap: city council to focus on child poverty

Edinburgh is one of the richest and most successful cities in the UK and regularly appears high on the list of most desirable places to live – and yet one in every five of our children are growing up in poverty. And in areas like Forth, Craigmillar and Wester Hailes the plight of children is even worse – there, the figures are one on four as families face the daily challenge of trying to make ends meet.

Despite the efforts of successive governments – and because of the legislation introduced by some of them – the gap between rich and poor continues to grow, and tackling child poverty is the focus of a new awareness drive being spearheaded by the City of Edinburgh Council.

A report going to the Education, Children and Families Committee next week (Tuesday 6 October) shows that just over 21% of children in Edinburgh live in poverty and this figure is forecast to increase significantly by 2020.

Every area of the city is affected with each Council ward having child poverty rates of over 10% and it’s estimated that the cost of delivering services to address the impact in the Capital is around £156m a year.

Next week’s Child Poverty report outlines various actions being taken by the Council to lessen the impact.

Key areas identified include:

*Developing more flexible and affordable good quality childcare to meet the needs of families on low incomes

*Improving attendance at schools and early years establishments, and the attainment and achievement of young people

*Reducing the attainment gap between lowest achieving pupils and their peers across the city

*Identifying and developing more safe places to play

Other actions include increasing breakfast club provision, working in partnership with food banks to better understand why families in poverty are using their services and further developing family engagement with a focus on strong home-school partnerships.

A major school project – the ‘1 in 5: Raising Awareness of Child Poverty in Edinburgh’ – has already started in five primaries and one secondary school. It aims to identify best practice and changes that can be introduced to make school more affordable for families on low incomes. The project involves working with children, staff and parents to challenge the stigma that affects children living in poverty.

The report also highlights the importance of income maximisation to raising attainment. Research has shown that the level of household income plays a major role in attainment levels with more initiatives needed to increase wages, encourage take up of unclaimed benefits and other finance-related poverty costs.

Councillor Paul Godzik, Education, Children and Families Convener, said: “Child poverty matters to us all as it damages childhoods, damages life chances and damages society as a whole. Children from poorer backgrounds lag behind at all stages of education so it’s important we do all we can to close the attainment gap.

“We have developed a range of actions to challenge and mitigate the impact of child poverty in the Capital and will continue to work closely with our partner agencies to ensure everything is done to ensure children given every opportunity to have the best possible start in life.”

Alison Noble, Head Teacher at Sciennes Primary School, is one of the schools taking ‘1 in 5: Raising Awareness of Child Poverty in Edinburgh’ project.

She said: “This project provides a valuable opportunity for Sciennes to make a difference and ensure the outcomes for our children are not undermined by poverty and inequality. By taking part we can focus our efforts on addressing the barriers that exist within our community and help us to begin to fulfil one of the objectives in the Scottish Attainment Challenge – to close the attainment gap and provide every child with the same opportunity to succeed.

“Our ward includes an area of multiple deprivation so raising awareness of the issues surrounding poverty may contribute to our children making a positive contribution to the school, local and wider community.”

Creating a fairer Scotland: local opportunities to have your say!

Pilton Community Health Project to hold discussion events

Pilton Community Health Project is to hold two local sessions to give North Edinburgh residents the opportunity to discuss Scotland’s future – and things we can do to help shape that future.

The events are part of the Scottish Government’s live consultation on creating a fairer Scotland, and the two sessions have been planned to ensure that as many people as possible will be able to participate.

The first discussion will take place on Thursday 15 October from 7 – 9pm in Muirhouse Millennium Community Centre, while the second event will be held during the day – on Thursday 22 October from 10 – 11.30am at Pilton Community Health Project on Boswall Parkway.

PCHP Anita Aggarwal explained: “The Scottish Government want to know what we think would make Scotland Fairer and Healthier. Like many other organisations in the area we want to hear what you have to say so we can pass it on to them. To this end we are organising two discussion sessions.

“The first will take place at Muirhouse Community Centre on Thursday 15th October from 7 till 9 pm. There are free refreshments.

“The second takes place at Pilton Community Health Project on Thursday 22nd October from 10 – 11.30. There is a free creche but your MUST book a place in advance by calling me on 0131 551 1671 – that’s also the number to call if you want more information on the events.”

You will also find facebook events and info on PCHP’s website http://pchp.org.uk/news/2015/fairer-scotland

The Scottish Government is particularly keen that as many people as possible take part in the national discussion, as can be read below:

What are the issues that matter most to you?
What do you think needs to be done to create a fairer Scotland?
How can you and your community play a role in helping to shape our future?

Scotland is a great country to call home. But we can make it an even better place. Achieving this will require a strong competitive economy and a fairer, more equal society. The two go hand in hand.

Right now people across Scotland are working to that end. But we believe that together we can do even more to secure better opportunities for all of us and for future generations.

To get there, more of us need to join the conversation that is already happening about the kind of Scotland we want to see in the future. We hope this leaflet (see below), and the discussion that follows, will help to do that. It describes some of the successes and challenges in Scotland today and a few ideas about what a fairer Scotland could look like. We want you to share your ideas as well, to tell us what matters to you.

By the end of 2015 we want to have created opportunities for the widest possible range of voices to be heard. This will include a series of events in the autumn that brings together people from across the country to discuss what practical steps we need to take to create a fairer Scotland.

The Scottish Government will respond to these ideas, and the wider conversation, setting out what we will do to help create a better Scotland. We hope others will do the same.

So go on, it’s our Scotland: it’s time to have your say on our future!

fairer scotland leaflet

If you want more information about what the Scottish Government are doing look at these links:

fairer.scot

healthier.scot

Crisis? What crisis? Fifty thousand families receive emergency help as austerity bites

150,000 households aided by Scottish Welfare Fund

More than 150,000 vulnerable households, including around 50,000 families with children, have received essential help to buy everyday products like nappies, food and cookers through the Scottish Welfare Fund.

The Scottish Welfare Fund consists of Crisis Grants – which provide a safety net to low income households in a disaster or emergency – and Community Care Grants, which help people to live independently.

Since the scheme began in April 2013, £65 million has been spent, with 105,000 households receiving Crisis Grants and 72,000 households receiving Community Care Grants.

The latest statistics, which break down grants between April 2014 to March 2015, show:

• Over the year 69,000 households received Crisis Grants averaging around £70, they were mostly for food and energy costs and were claimed because of an emergency. They included:
o Almost £3.9 million of grants were given out for food – up from £2.4 million in 2013/14;
o £23,000 was spent on nappies, an increase from £17,200 in 2013/14;
o Nearly £1.3 million was spent on energy costs, up from £826,000 the previous year.

• 43,000 households received Community Care Grants averaging around £600. These awards were most likely to be claimed by people looking for help to stay in or set up their own home, or families facing exceptional pressures. They included:
o Nearly £7.2 million in grants awarded for the refit of carpets, up from £5.5 million in 2013/14;
o Almost £8.2 million spent on cookers, washing machines and fridges, compared to £6.9 million in 2013/14;
o Around £630,000 was spent on clothing and shoes, an increase of £90,000 from the previous year.

Over a third of the grants were made to vulnerable households such as people with mental health problems, lone parents, disabled people, or those suffering from a chronic illness.

Welfare Minister Margaret Burgess said: “These grants are a vital lifeline for people in crisis with more than 150,000 households benefitting from a share of the £65 million Scottish Welfare Fund.

“It is helping people in desperate situations buy everyday items like food, shoes and beds, and keeping them afloat during worrying times.

“The Scottish Government will continue to work with councils to publicise this scheme and reach those who are struggling to be able to afford items that many of us take for granted.

“While the UK Government presses ahead with its austerity agenda and continues to widen the gap in inequalities, the Scottish Government will continue to try to militate against the worst of the impacts of the UK cuts, including investing £296 million in mitigation schemes, extending our free childcare and encouraging employers to pay the Living Wage.

“As part of our drive to tackle inequalities we are also asking people for ideas on how we can create a fairer, healthier, happier Scotland where opportunities, wealth and power are spread more equally.”

Councillor Harry McGuigan, COSLA’s Community and Well-Being spokesperson, said: “There is a growing number of people using the fund to buy the most basic of items like food, beds and cookers.

“Councils and the advice sector make sure those in need know where to get this vital help. Given the planned social security cuts, the fund will come under considerable pressure as more people require help over the next few years.

“Councils are committed to providing the best support to those in need that we can, both direct financial help, as well as advice and referrals.”

Sturgeon: UK Budget will hit Scotland’s poorest children

Scottish Government figures give ‘frightening indication’ of potential impact of expected tax credit cuts

Expected cuts to the value of tax credits by the Westminster Government in tomorrow’s budget will impact most on the poorest children in Scotland, First Minister Nicola Sturgeon said this morning.

Figures due to be published tomorrow (Wednesday) by Scottish Government analysts show that, if the Chancellor cuts child tax credits back to 2003 levels in real terms as has been reported, the poorest 20 per cent of Scottish families with children will lose on average nearly 8 per cent of their income – a total impact of £425 million lost across the country – with 60% of Scottish children affected by the changes.

First Minister Nicola Sturgeon described the research as “a frightening indication” of the impact of the expected cuts and warned that the UK Government’s approach will “hit Scotland’s poorest children and families hard”.

The First Minister said: “The UK Government has already warned that tomorrow’s budget will continue their austerity approach, which we are clear is not just unfair but damaging to the economy – undermining attempts to stimulate growth.

“Tax credits form an important part of the tax and welfare system, designed particularly to support working families on low incomes.

“More than 500,000 children in Scotland benefit from tax credits. Two-thirds of the £2 billion expenditure on tax credits in 2013-14 went to low-income working families with children and only 5 per cent to households without children.

“If, as we expect, the UK Government targets tax credits for cuts in tomorrow’s budget, it will hit Scotland’s poorest children and families hard. It is a frightening indication of the potential impact of the expected cuts in tomorrow’s UK budget.”

The First Minister went on to describe the austerity approach as ‘economically counter-productive’:

“We want to support people to get into work and to stay in work and the tax credit system provides important practical help to families on low pay.

“These are people who are in jobs and often working very hard for relatively little pay. It is unfair that their children are the people made to pay for the mistakes of the austerity approach – not to mention economically counter-productive.

“When people are in work, they spend their wages in the local economy, leading to a virtuous circle. Cutting child tax credits back to 2003 levels, as we expect the UK Government to do tomorrow, will risk threatening Scotland’s economic recovery.

“The deficit needs to be reduced but this should be done in a more gradual manner with more resources allocated to a programme of additional investment in our economy, rather than risking a financial body-blow to hard-working parents and their children.”

Women hit hardest by welfare reforms

‘inequalities faced by women have been exacerbated by the welfare reform agenda’ – Clare Adamson MSP

Women are being hit hard on multiple fronts by changes to the benefits system, according to a report published by Holyrood’s Welfare Reform Committee today.

The Committee found women are ‘disproportionately impacted’ by welfare reform across a range of issues and benefits. Its report includes recommendations to the Scottish Government and Department of Work and Pensions, aimed at mitigating the impact of welfare reform on women, including:

An integrated approach to job seeking support across health, housing and social care, to better meet the needs of women.
To tackle the greater dependence of women on the benefits system due to low pay and insecure employment, the Committee calls for better measures to close the gender pay gap and end occupational segregation.

Committee Convener Michael McMahon MSP, said: “The evidence we have set out confirms the devastating impact on women of the UK Government’s reforms to the social security system. Of particular concern is the cumulative impact on women hit by multiple benefits cuts, from child support to carer’s allowance.

“The UK Government urgently needs to look at how women are being affected by these changes and we are also calling on the Scottish Government to look at the gender impact of their own policy decisions.”

Deputy Convener Clare Adamson MSP, said: ““Our report shows inequalities faced by women in Scotland have been exacerbated by the welfare reform agenda. With the Scotland Bill still making its way through Westminster and the Chancellor set to announce even deeper cuts to welfare spending, the Committee is urging the Scottish Government to make use of expected new powers over welfare to help mitigate more of the negative impact of welfare reform on women.

“The Committee would, for instance, support a move away from monthly and single household payments under Universal Credit, as a way of protecting women’s financial autonomy.”

The report will come as no surprise to many, but perhaps of more concern is the scale of cuts still to come: Chancellor George Osborne is expected to announce a further £12 billion of welfare ‘savings’ in his budget on Wednesday.

Welfare Minister Margaret Burgess said more women could be pushed into poverty and disproportionately affected by social security reforms if the UK Government cuts £12 billion from its welfare budget.

Commenting on the Scottish Parliament’s Welfare Reform Committee’s Women and Social Security report Mrs Burgess expressed her fears that the UK Government’s emergency budget would only deepen the gender inequalities highlighted in the findings.

The report backed Scottish Government recommendations on payment flexibilities under Universal Credit and it also highlighted the need for gender impacts to be factored into any policy decisions.

Mrs Burgess will meet women at One Parent Families Scotland in Glasgow today to hear their views on how the Scottish Government can create a Fairer Scotland. This comes on the same day as Barnardo’s Scotland and the Scottish Government joined forces to call a halt to proposed cuts.

Mrs Burgess said: “It is alarming to see that women have been disproportionately affected by the UK Government’s benefits cuts and are twice as dependent on social security than men. I am deeply concerned that the UK Government’s £12 billion cuts will only widen this gap.

“With our new powers we will create a fairer and simpler social security system that aims to tackle gender and other inequalities. However we need to know how the UK Government’s cost cutting will affect benefits that are to be devolved.

“Organisations like One Parent Families Scotland and Barnardo’s Scotland see the effects of social security changes on the groups the report highlights as being particularly vulnerable, on a day to day basis, and are rightly concerned about the devastating impact further cuts could have on children.

“We welcome the Committee’s recommendations over Universal Credit and sanctions, and we will continue to do all we can to break down the barriers that prevent women from entering into work.

“Over the next few months we’ll be listening to the people affected by the UK Government’s welfare changes and cuts and, will be making sure we get the views of women on how we can create a system that suits their needs.

“Despite challenges from the UK Government we are tackling poverty head on. Our new Independent Adviser on Poverty and Inequality will be looking at what more we can do to lift people out of poverty, we have invested £296 million in welfare mitigation measures, extended our childcare and are encouraging employers to pay the Living Wage.”

Last week the children’s commissioners for Scotland, England, Wales and Northern Ireland warned in a report to the United Nations that government austerity measures had failed to protect the most vulnerable children. The report said the £12bn of planned cuts would have the biggest effect on the 2.3 million children in the UK estimated to be living in poverty.

Creating a fairer Scotland

How do we build a more equal society?

People across Scotland are being asked to take part in a national discussion about how the country can be a fairer and more equal place to live.

Over the past eight years Scotland has had a rising employment rate, improved educational outcomes and people living healthier lives – now the Scottish Government wants to mobilise the nation to help tackle the scourge of intergenerational poverty and create fairer opportunities for all.

To reach more people and build on the community-led discussions of the Referendum and General Election, widespread, direct involvement of communities will take place the length and breadth of Scotland.

People will be invited to set out their vision of a fairer Scotland and suggest practical solutions, based on local and personal experience.

Capturing the voices of those with direct experience of poverty and exclusion will be vital. Voluntary organisations and public sectors, charities, councils, large and small businesses, trade unions will also play a pivotal role.

Social Justice Secretary Alex Neil launched the national discussion – which will take place over the summer and into autumn – in Kirkshaws Neighbourhood Centre in Coatbridge earlier today.

Mr Neil said: “Tackling inequality, along with building a prosperous and competitive economy, is at the heart of the Scottish Government’s commitment to creating a better country for all. The two go hand in hand.

“The Scottish Government’s vision is for a Scotland where people are healthier, happier and treated with respect, and where opportunities, wealth and power are spread more equally. We want to discuss issues like childcare, fair work and health and hear what people believe could be done to create a better Scotland.

“It is important that we are an open and accessible government. We want to tap into conversations many people and communities are already having throughout Scotland, rather than consult on whether or not people agree with a range of ready-made proposals.

“We recognise that it will take time to achieve our shared vision of a fair, equal and socially just Scotland. We are not looking for quick fixes or temporary measures but long lasting change that can benefit the whole nation.”

Conversations will take place across the country and online, including a series of events over the summer and autumn where people can discuss the issues that mean most to them. An action plan, with people and their priorities at its heart, will be published in the new year with milestones to the next Parliament and beyond to help us achieve our goals.

Sir Harry Burns, former Chief Medical Officer and now Professor of Global Public Health at Strathclyde University, said: “The Government has recognised that the days of doing things to communities are past. Instead, the new approach, outlined in ‘Creating a Fairer Scotland’ is about doing things with communities.

“By meeting and listening to the marginalised and excluded people of Scotland, they will hear in raw detail what it’s like to live with fear of violence, hunger, cold and addiction. If communities are genuinely involved in shaping solutions to their own problems, those solutions will be enduring and effective.”

Peter Kelly, Director of The Poverty Alliance, said: “Today’s launch holds out the potential for a new approach to the problems of social injustice in Scotland. For once, we are not being asked to comment on plans that have already been made, or to pass judgement on some blueprint after it has been developed. By entering into genuine dialogue with people across Scotland we can begin to develop lasting solutions together.”

Tressa Burke, Chief Executive of the Glasgow Disability Alliance, said: “Our 2500 disabled members are delighted that the Scottish Government is leading by example and building on the energy of the referendum by beginning powerful dialogues and relationships with communities across Scotland. This matters because disabled peoples’ lives are blighted by poverty, exclusion and inequality on a daily basis. By working together, we are confident that we can come up with necessary steps and actions to tackle barriers and achieve a fairer and more equal life for disabled people and for all Scotland’s people.”

How YOU can join the conversation:

Send an email to fairer@scotland.gsi.gov.uk
On Twitter at: @scotgovfairer
On Facebook at: www.facebook.com/fairer.scot
Responses can also be sent by post to: FREEPOST FAIRER SCOTLAND”
Public discussion events will also take place in communities across the country over the next few months. Details will be made available through www.fairer.scot

‘Scotland must unite against austerity’

‘We need to present a united front against these measures and I would encourage every organisation working to tackle inequalities and fighting poverty, to add their voice to this debate’ – Social Justice Secretary Alex Neil

Third sector organisations need to stand united to fight Westminster’s proposed £12 billion cuts, Social Justice Secretary Alex Neil told conference delegates yesterday.

Speaking at the Child Poverty Action Group Scotland’s annual conference, the Cabinet Secretary encouraged delegates and welfare workers to work together to bring the UK Government’s austerity agenda to a halt.

He said the first of the cuts is the UK Government’s Full Employment and Welfare Bill which will freeze the main rates of the majority of working age benefit tax credits and child benefit for two years from 2016-17, and reduce benefit expenditure in Scotland by around £130 million.

The Institute of Fiscal Studies (IFS) estimate that 11 million families in the UK, including an estimated one million families in Scotland, will be affected by the plans to freeze benefits.

Mr Neil said: “The UK Government’s proposed £12 billion cuts will have a detrimental impact on Scotland and will do nothing to tackle the scourge of child poverty.

“We need to present a united front against these additional measures and I would encourage every organisation working to tackle inequalities and fighting poverty, to add their voice to this debate.

“Through our Child Poverty Strategy we are already working with partners to reduce levels of poverty amongst households with children and to break inter-generational cycles of poverty, inequality and deprivation.

“The Scottish Government, alongside CPAG and others wants a more equal society, we want to create jobs and lift people out of poverty, and we will continue to listen to the advice of organisations who are working directly with families across the country.

“However if we are having to fund mitigation then we have a much harder challenge ahead of us. Our resources should be used to take positive action and tackle existing inequalities, not fight just to keep people at a standing position.

“The Smith Commission proposals gave the Scottish Government limited powers to make real inroads into child poverty outcomes. We will work with all concerned to make sure that the new powers we have will lead to better results for people in Scotland.”

John Dickie the Director of Child Poverty Action Group in Scotland said: “With key areas of social security set to be devolved to the Scottish Parliament today’s Child Poverty Action Group conference brings together over 180 frontline advisers to get the latest details on what exactly is being proposed and share ideas on how new powers might be used to improve benefit support and tackle poverty more effectively.

“The discussion is crucial coming as it does against a backdrop of rising child poverty and the threat of further cuts to the UK benefits that families both in and out of work rely on.”

Dignity: report reveals thoughts on a Scotland without poverty

‘If there wasn’t poverty, every community would be proud, there would be no stigma associated with living in particular places. People would feel able to participate in their community; they wouldn’t be scared of going out and getting involved.’

Over twelve months The Joseph Rowntree Foundation supported the Poverty Alliance to carry out a range of activities that would help ensure that the voices and experiences of those living on low incomes in Scotland were included as part of JRF’s UK Anti-Poverty Strategies research programme.

Over the course of this piece of work, the question of what a Scotland without poverty means was put to the participants in a series of activities. These activities – including community engagement meetings, establishing a community panel and organising the Scottish Assembly for Tackling Poverty – were then supplemented with further interviews with people living on low incomes late last year.

This short report (click on link below) highlights the particpants’ views on what a Scotland without of poverty would mean to them. The report sought to identify what some of the main challenges are, and how these may be addressed over the short and longer term.

Download A Scotland Without Poverty

The JRF Anti-Poverty Strategy for the UK will be published later this year.

Scotland_Without_Poverty_May2015

Living Wage benefits employers too, research finds

Improved productivity and an enhanced company reputation have been highlighted as key benefits of organisations implementing the Living Wage according to an independent report.

The report – Wider Payment of the Living Wage in Scotland – highlights that increased productivity is also likely to outweigh the higher wage for many firms with increased pay creating a ‘feel good factor’ in the workplace.

Reduced absenteeism and reduced staff turnover have also been outlined as potential benefits by the report, which has been published ahead of tomorrow’s second meeting of the Fair Work Convention.

Cabinet Secretary for Fair Work, Skills and Training Roseanna Cunningham welcomed the report and said: “This is a fascinating report which, on the whole, offers a very positive outlook on the benefits of paying the Living Wage.

“As well as the more obvious benefits to individuals receiving higher pay, I hope the findings on improved rates of absenteeism and better productivity help convince employers, not already on board with the Living Wage, that it could be a very positive step for their business.

“A number of respondents also mentioned the reputational benefits of being a Living Wage employer, including reinforcing their positioning as ethical and socially responsible businesses.

“The Scottish Government is committed to fairness, supporting those on the lowest incomes, and we recognise the real difference the Living Wage can make to the people of Scotland. We have been working closely with the Poverty Alliance to encourage every employer to ensure all staff receive a fair level of pay. The Fair Work Convention, which meets for the second time tomorrow, is looking a number of ways to improved workplace relations and productivity, with fair pay seen as key to their work.

“Some of Scotland’s top employers already pay the Living Wage, with Aberdeenshire beer company Brewdog, fast-becoming one of our most recognisable brands becoming the 200^th accredited organisation last week.

“A KPMG report from last month showed that Scotland is most Living Wage-aware region in UK with 9 out of 10 Scots having heard of the Living Wage and a higher proportion of employees paid the Living Wage than the UK as a whole.

“But employers paying the living wage is only half the story here. The tax and benefits system needs to work smarter to make sure that people on low incomes see a greater share of any increases in pay – and we will press the UK Government to make sure this happens.”

The report ‘Wider Payment of the Living Wage in Scotland’ was carried out by Ipsos MORI and Loughborough University and can be found at: http://www.gov.scot/Publications

Among the main points highlighted:

Existing research from other countries suggests that payment of the Living Wage can improve employee wellbeing, including higher satisfaction at the workplace. However, the effects on reducing poverty are less clear, as a large proportion of the employee’s pay increase is often lost in increased taxes and reduced means-tested benefits.

A considerable body of evidence shows no significant reduction in labour demand and employment levels due to increased wage floors.

Although increased productivity is likely to outweigh the higher wage cost for many firms, this does not mean that all firms will experience increased productivity, or that it will fully cover the cost for all those that do experience it. Some employers reduce labour costs in other ways (e.g. non-wage benefits), suffer reduced profits and/or pass the costs on to consumers in the form of higher prices.

To improve the implementation process, the Scottish Living Wage employers interviewed suggested employers should:

• conduct feasibility studies to identify and deal with potential risks

• communicate openly with staff about the rationale for adopting the Living Wage

• create a clear action plan for working with sub-contractors

The Scottish Living Wage employers interviewed suggested the Scottish Government could:

• provide advice and guidance on all aspects of the implementation phase

• encourage dialogue between Living Wage employers and those considering it

• raise awareness among recruitment agencies about the Living Wage

• provide more information and evidence on the benefits of the Living Wage

• provide financial incentives to help small businesses implement the Living Wage

• improve communications on, and engagement in, setting the level of the Living Wage

In the US, evidence on additional contracting costs due to enforcing a Living Wage among public contractors suggests at most very modest effects. In the UK – which, unlike the US, is unable to make payment of the living wage a mandatory requirement – a number of public bodies have nevertheless successfully included living wage considerations in procurement exercises. However, no satisfactory way of dealing with social care contracts has been found, due to very tight public budgets and a cost base dominated by low-paid labour.

Scottish Government contractors identified actions that could support the use of procurement to encourage implementation of the Living Wage, including:

• some form of subsidy to help offset increases in wage costs among contractors

• making use of local government and non-departmental government bodies to provide information and support

• workshops with contractors to provide information and advice on best practice

• providing robust evidence on the impacts, and advice on addressing barriers.