Scotland spent almost a sixth – £1 billion – more on welfare than the funding provided by the UK government in 2024/25
Scotland has the highest proportion of children in long-term workless households in Great Britain with child poverty targets missed
Jobless couple with three children can receive combined benefits worth £45,500 a year in Glasgow, equivalent to a salary of £69,000
New plan ahead of Holyrood elections sets out reforms to save almost £1 billion a year and refocus support on work and mental health treatment
The case for reforming Scottish welfare
The Scottish Government has poured billions of pounds of taxpayer cash into the country’s welfare state “with abandon”, according to a new report.
The research, entitled Benefitting Scotland?, finds that nearly a decade after major welfare powers were devolved, Scotland is spending significantly more than the rest of the UK on a “smorgasbord” of conflicting benefits and entitlements.
There is “minimal” evidence that the system is succeeding even on its own terms, warns the Centre for Social Justice. Persistent child poverty is running at 23 per cent, more than double the Scottish government’s eight per cent target.
At the same time, Scotland has the highest proportion of children living in long-term workless households in Great Britain at 11.3 per cent, and its rate of economic inactivity has gone from below England’s before 2016 to persistently above it.
The £28 billion annual welfare budget – almost a quarter of which is administered by the Scottish government – has ballooned out of control.
Last year Scottish ministers spent above and beyond the “block grant adjustment” – a grant allocated by the UK government to match non-devolved benefit spending – by almost £1 billion.
The cross-party think tank argues that Scotland could save hundreds of millions of pounds while achieving better outcomes.
Restricting eligibility to disability benefits for those with less severe mental health conditions and frontloading the Scottish Child Payment would save at least £800 million for the Scottish government to re-invest in treating the root causes of mental illness and supporting families directly through Whole Family Wellbeing Funding.
The report also highlights the scale of work disincentives in the system.
A couple with three children living in Glasgow can receive almost £45,500 per year by combining benefits. To match that income from work alone would require a salary of roughly £69,000 before tax from a single earner.
Even when parents move into employment, they can lose up to 79p of every additional pound earned once benefit tapers, income tax, national insurance and pension contributions are combined.
They also risk losing access to the myriad supplements layered on by the Scottish government, including the Scottish Child Payment, several Best Start Grants, a Carer’s Allowance Supplement, new Winter Heating Payments, and a plethora of one-off grants.
Ben Gregg, Head of Welfare at the Centre for Social Justice, said: The Scottish government has missed its own child poverty targets, while pushing economic inactivity in Scotland from below to above England.
“The welfare system is over budget, overly complex, and failing on its own terms. With Holyrood elections this year, there is a real opportunity to create a much leaner, far more effective system, focused on changing lives and tackling the root causes of poverty.”
Scottish Child Payment has supported more than 241,000 parents and carers since its launch five years ago, helping put over £1.3 billion into the pockets of low-income families.
An increase to the payment for children under one will be introduced during 2027/28, estimated to benefit around 12,000 children and could be worth an extra £500 a year for each eligible child.
The payment, which is only available in Scotland, provides families with £27.15 a week, rising to £28.20 from April 2026, for every eligible child under 16. Latest figures show more than 322,000 children are benefiting from the payment as of September 2025.
Scottish Child Payment, and other family payments delivered by Social Security Scotland could be worth around £25,000 by a child’s 16th birthday — compared with less than £2,000 in England and Wales, where support ends at age four.
It is estimated that Scottish Child Payment will keep 40,000 children out of relative poverty in 2025-26, with the relative child poverty rate lower than without the payment in place. Clear evidence that the payment is central to the Scottish Government’s mission to eradicate child poverty.
On a visit to Home-Start Edinburgh to meet with parents and children benefiting from the payment, Social Justice Secretary Shirley-Anne Somerville said:
“Scottish Child Payment has improved the lives of thousands of children and families across Scotland over the last five years. And our plans to raise the weekly payment to £40 for eligible children under one shows the Scottish Government’s level of ambition and determination to end child poverty in Scotland.
“This payment helps ease the pressure on family budgets and forms part of the best cost-of-living support package in the UK. It helps pay for essentials like food and clothing, things that people who are better off may take for granted but which children in these households might otherwise go without. I urge families to check if they are eligible.”
Eliza Waye, CEO of Home-Start Edinburgh, added: “Early childhood experiences are foundational to lifelong wellbeing and support better outcomes across health, education, wellbeing and more.
“The Scottish Child Payment plays a vital role in easing pressure on families and helps ensure children grow up in a more equitable environment. Despite this, being a parent is incredibly hard.
“At Home-Start, we support parents to overcome the challenges they face; helping them build confidence and connect to networks of support. The combination of financial and community support enables the investment in families and children to go further.”
Scottish Child Payment opened for applications on 15 February in 2021 and began as a £10 per child, per week payment. It has increased by more than 170% since then. For 2026-27 Scottish Child Payment will increase to £28.20 per child per week, in line with inflation.
Over £1.3 billion worth of Scottish Child Payments have been issued to more than 241,000 individual parents and carers by 30 September 2025.
The 2026-27 Budget will support a stronger NHS, with a record £22.5 billion for health and social care, expand cost of living support and invest in Scotland’s infrastructure.
Published alongside the latest multi-year Scottish Spending Review, Infrastructure Strategy and Infrastructure Delivery Pipeline, the draft Budget invests almost £68 billion including direct support for families and household budgets.
The 2026-27 Budget includes:
a cost of living package to: help families with funding to trial a programme of activities in a range of primary schools between 3-6pm; a Summer of Sport – free children’s sporting activities, including lessons on how to swim for every primary school child in the country; and a breakfast club for every primary school by August 2027
continued investment in Scotland’s existing cost of living measures, including free prescriptions, free eye examinations, removal of peak rail fares on Scotrail, free tuition fees for young Scots, free school meals for thousands of children, including all pupils in P1 to P5, and free bus travel for under-22s and over-60s
funding to increase Scottish Child Payment to £28.20 per week and investment to allow the introduction of a premium payment of £40 per week for eligible children under 12 months from 2027-28, bolstering efforts to drive down child poverty
extra funding to keep more children out of poverty from funds initially set aside to mitigate the UK Government’s two-child cap, including £50 million of whole family support and a further £49 million for measures to be announced in the Child Poverty Delivery Plan in March
tax choices which increase the Basic and Intermediate rate income tax thresholds to put more money in the pockets of low and middle income earners, maintain current income tax rates and bands, and provide a competitive non-domestic rates relief package worth an estimated £864 million, including measures for pubs, restaurants and retailers
a record £22.5 billion for health and social care, including a record £17.6 billion for NHS boards and resources to begin the national rollout of walk-in GP clinics, making it easier to access same-day appointments
an almost £15.7 billion record settlement for local government to support the services communities rely on including social care and education
significant extra funding for universities and colleges, with colleges seeing a combined increase of £70 million in resource and capital funding, equivalent to a 10% uplift, targeted support to help retrain workers in the oil and gas sector and ongoing commitment to Scotland’s apprenticeships, which this year will provide more than 31,000 Scots with a pathway to sustainable, well-paid jobs
over £5 billion to tackle the climate emergency, reduce carbon emissions and increase resilience as well as backing regenerative and sustainable skills in food and farming
£4.3 billion transport funding including investment in railways, the renewal of the ferry fleet, removal of peak season fares for residents of Orkney and Shetland on Northern Isles ferries and nearly £200 million for the dualling of the A9
record investment in new affordable homes
Ms Robison said:“This Budget delivers for families across the country, for a stronger NHS, and for a more prosperous future.
“It will fund landmark policies to continue efforts to eradicate child poverty – investing in a brighter future for Scotland and the children growing up here.
“Almost £68 billion is being invested in 2026-27 and almost £200 billion through the Scottish Spending Review and Infrastructure Investment Pipeline, demonstrating the scale of our ambition for our nation.”
Other measures include:
from April 2027, an Air Departure Tax (ADT) will come into force and the framework offered by the new ADT will be used to introduce a private jet supplement
the introduction by April 2028 of two new council tax bands for the most expensive properties in Scotland, those worth more than £1 million, on an up-to-date valuation
support for high-growth firms to attract private investment and connect entrepreneurs
£200 million for the Scottish National Investment Bank – delivering on the commitment to invest £1 billion in the Bank by the end of the parliamentary term
record funding for police and fire services and an additional £10 million investment in community justice services
a £20 million increase in the culture budget, recognising Scotland is richer because of its world-famous culture and creative sector
support for the creation of a diverse and sustainable supply chain for offshore wind, to boost the economy.
Responding to today’s proposed Scottish Budget, Poverty Alliance Policy & Campaigns Manager Ruth Boyle said: “People in Scotland want a just and compassionate society – but too many feel the system is rigged against them.
“There was some good news today – but we can do much more to make sure that every child in Scotland gets the investment they need for a decent life and a better future.
“Ensuring that every child in primary school gets a healthy breakfast is an excellent investment, because no child should go to school hungry.
“Increasing the Scottish Child Payment to £40 for eligible households with a baby under 1 is welcome and will help families at a time when they face increased costs. However, this must be a first step towards boosting that payment to £40 for every eligible child in the country.
“That is the kind of fundamental investment the Government needs to make if they are serious about meeting the 2030 child poverty targets.
“With Scotland not on track to meet those legally binding targets, we need all political parties to set out their plans to invest in country where no child lives in poverty. Our children can’t wait any longer.
“We can make that kind of investment in Scotland – and there is support for it. In among the Budget documents is new polling from YouGov showing that 54% of people in Scotland believe that Government should redistribute income from the better-off to those who are less well off. Just 29% disagree.
“The Scottish Government must raise revenue to invest in our shared national priorities, like tackling child poverty and reducing the cost of living. It’s right that the Government has turned to those with the biggest assets to contribute more with a tax on private jets and increased council tax for the highest value homes.
“This has to be the start of long-promised, fundamental reform of council tax so that our local councils can provide the services that all of us need, and that are a vital lifeline for so many households in poverty.
“The Poverty Alliance will continue to call for the measures we need to provide a Minimum Income Guarantee that no-one will fall under – including increasing wages, investing in strong public services, and providing a social security system that gives everyone in Scotland a secure foundation to build a better future.
“Today’s budget has some positive steps towards that ambition – but we need to go further and faster if we are to build a Scotland free from poverty.”
Commenting on today’s draft Scottish Budget, Mary Glasgow, Chief Executive of Children First, Scotland’s national children’s charity, said: “It’s hugely positive to see child poverty being made a top priority in today’s budget.
“The significant funding boost to whole family support and extra resources for third sector organisations will provide a lifeline to families who need help most, right across Scotland.
“But we can’t afford to slow down. Scotland’s legal target to eradicate child poverty demands bold, accelerated action. Life is tougher than ever for many children and families and at Children First we witness this first-hand every day.
“That’s why we urgently need a National Front Door that offers a simple accessible way for families to get the help they need when they need it.”
Children First’s manifesto for the 2026 Holyrood elections calls on the next Scottish Government to deliver a comprehensive offer of whole family support to tackle child poverty and give every family the emotional, practical and financial support they need.
Trussell’s Cara Hilton said: ‘While we welcome the @scotgov‘s £40 SCP rate for babies under 1, we continue to call for an increase to £40 a week for all.
‘Our @TrussellUK data shows food parcels for families with children aged 12-16 in Scotland rose by 7% over the past 5 years. #ScotBudget‘.
Responding to the Scottish Budget and Scottish Spending Review, Anna Fowlie, Scottish Council for Voluntary Organisations (SCVO) Chief Executive, said: “Too often and for too long, voluntary organisations that provide vital services to people and communities across Scotland are treated as the poor relation to mainstream public services.
“They have had to contend with budget cuts, short-term funding cycles, late payments, incoherent decision-making, poor communication, inadequate grant management, and more.
“Reform of the voluntary sector funding landscape is long overdue. The Scottish Spending Review is welcome, giving the Government the long-term outlook to make progress on its commitment to deliver improvements, including multi-year funding for Scotland’s voluntary organisations.
“Welcome too is the Scottish Government’s commitment to multi-year funding for sections of the voluntary sector—this shows, again, what is possible.
“Today we had hoped for more than a recommitment to the ‘first step’ announced last February—the Scottish Government’s ‘Fairer Funding’ pilot.
“We know the benefits of multi-year funding: better staffing, stability, and future planning for the services people and communities rely on. The Government’s own research confirms this.
“Multi-year funding alone, however, will not provide the sustainable funding environment the voluntary sector so desperately needs, funding that is flexible, sustainable, and accessible.
“We need to see real progress and recognition of SCVO’s Fair Funding asks beyond multi-year funding. Wider reforms are, unfortunately, now unlikely to be seen before the next parliamentary term.
“In the meantime it is essential that in the weeks following the Scottish Budget the Scottish Government support local authorities and voluntary organisations by meeting their commitments to timely notifications and payments.
“We look forward to further engagement on both Fair Funding and charity regulation in the next parliamentary term.”
Shelter Scotland Director, Alison Watson said:“Social housing delivery in Scotland remains too slow, too little and too late for the more than 10,000 children homeless tonight. Today’s budget doesn’t do enough to change these facts.
“Shona Robison’s budget was an opportunity for Ministers to put their money where their mouth is. On the face of it an additional £34 million for social housing, compared to the most recent budget, is a step in the right direction – but it is not enough.
“The extra money will only deliver 36,000 affordable homes by 2030 – more than 26,000 short of where they say they would need to be to deliver their promise of 110,000 affordable homes by 2032.
“The new Parliament will need a new approach and new money to deliver the social homes needed to reduce homelessness. Homes that the government promised, that academics say we need but for which there is still no credible plan to deliver.
“We must be honest about the real costs of failure. Failing to build the social homes we need means rising homelessness, rising child poverty, rising costs for councils, health boards and the taxpayer.”
Responding to the Scottish Government’s Budget, Debbie Horne, Scotland Policy and Public Affairs Manager at Independent Age said: “It is disappointing to see nothing new in this Budget to adequately respond to the growing number of older people in poverty.
“One in six pensioners now live in poverty across Scotland, a total of 160,000 older people, and we must see more action to support them.
“We want the Scottish Government to set out a clear, targeted strategy to bring down the alarming number of older people in poverty, increase access to the vital Discretionary Housing Payments that can help older renters meet shortfalls in rent, and increase the social security support available to those on a low income in later life.
“With pensioner poverty at its highest level in nearly 20 years, and likely to continue to rise as our population ages, it’s vital all political parties include measures to bring down the levels of poverty in later life in their manifestos’ ahead of May’s Holyrood elections. In a compassionate and wealthy society, we should all be able to live a financially secure, dignified later life.”
Responding to the Scottish Government’s Budget statement which slashed the 40% discount on business rates bills for pubs at the same time as a rates revaluation will lead to higher bills from 1 April, Stuart McMahon, Director of pubgoers group CAMRA Scotland said: “Pubgoers and publicans simply won’t stand for a Budget which will force more of our locals to go to the wall by landing them with bills they simply can’t afford.
“I fear that slashing the 40% discount on business rates bills for pubs to just 15% at the same time as these bills are increasing will be absolutely disastrous.
“Transitional reliefs may sound good but if this Budget still means higher business rates bills than pubs are paying now then this will be the straw that breaks the camel’s back for many hard-pressed licensees.
“Pubs need permanently lower business rates bills so that they can survive, thrive and play their part as vital community hubs.”
The Scottish Government’s budget announcement of further funding for the college sector, which includes a combined increase of £70 million in resource and capital funding, received a qualified welcome. Principal of Edinburgh College, Audrey Cumberford said: “While this is a welcome step in the right direction for college funding, there is still more that needs to be done.
“This increase will help to undo some of the damage done by years of real terms cuts, but more is needed if we are to ensure the future sustainability of our sector.
“There is now a clear consensus across the political spectrum for better funding for colleges.
“I would urge parties to continue to work together to make sure we unleash the true potential of our sector so we can continue to drive economic growth and improve the lives of Scots across the country.”
Responding to the Scottish government’s 2026-27 budget, announced today by Finance Secretary Shona Robison, RCEM Vice President for Scotland Dr Fiona Hunter said: “Scottish Emergency Departments are in the midst of a crisis born of political apathy towards tackling the difficult problems of social care capacity, delayed discharges and the overall issue of hospital flow.
“Today’s budget indicates once again that the Scottish government understands what the issues are. £2.3bn extra for social care, an uplift in frontline NHS spending, specific targeted action on delayed discharge and local engagement – these are all measures we warmly welcome from the government.
“As well as this, our members will be pleased to hear about improvements to training, retention and working conditions.
“However, we’ve been here before. Time after time the reality in our A&Es has got worse, not better, despite claims from the government that the NHS has been on ‘the path to recovery’ in recent years.
“We are seeing more and more patients waiting alone on trolleys in hospital corridors for hours on end, getting sicker and being put at risk of harm.
“This has happened because exit block has not been tackled, despite promises to the contrary from the government.
“The devil will be in the detail and I will reserve judgement for when myself, and the members I represent, see improvements in our Emergency Departments.
“We look forward to continued engagement with the government on how it seeks to tackle hospital flow, and await further information on how the Health Secretary will take today’s promises and turn them into action and, ultimately, improvements for our patients.”
Jonathan Carr-West, Chief Executive, LGIU, said: “This Budget offers some short-term stability for councils, but it ducks the bigger questions about how local government is funded.
There is still no meaningful move towards multi-year settlements, which councils overwhelmingly say they need in order to plan sustainably. Our annual State of Local Government Finance in Scotland research, launched last week, reinforces this.
Incentivising a council tax freeze risks further undermining local fiscal autonomy, while adult social care remains the single biggest pressure on council finances without clear, dedicated funding.
Housing investment is welcome, but spreading it across the country without enabling local flexibility limits its capacity to tackle the areas of greatest need.
Overall, this is a Budget that manages immediate pressures but avoids the structural reform required to put local government finance on a sustainable footing.”
The Existing Homes Alliance (EHA) is a coalition of over 20 housing, environmental, fuel poverty, consumer and industry organisations calling for urgent action to transform Scotland’s existing housing stock.
Lori McElroy, Chair of the Existing Homes Alliance said:“While we welcome the ongoing support to help homeowners, landlords and tenants to make their homes warmer, healthier and more affordable to heat, this remains a drop in the ocean when we have over 800,000 households living in fuel poverty and 44% of Scotland’s homes falling below Energy Performance Certificate band C.
“Scotland has excellent fuel poverty and energy efficiency programmes such as Warmer Homes Scotland, Area-based Schemes and the Social Housing Net Zero Heat Fund, as well as generous grants through the Home Energy Scotland Grant and Loan Scheme, but the gap between what is needed and what is currently being delivered is wide.
“This Budget, as it stands, is a missed opportunity to significantly scale up these programmes which would reduce fuel poverty, improve public health by tackling damp and mould, and prepare the workforce and supply chains needed to deliver our climate change targets – supporting thousands of jobs and economic opportunities across Scotland.”
Joanne Smith, Policy and Public Affairs Manager for NSPCC Scotland, said: “For children to thrive, it’s vital that they have the best start in life, and so we are heartened by the Scottish Government’s commitment to increase the Child Payment for under ones. But we are disappointed that young families now will not reap those benefits, with it starting in more than a year’s time.
“We also welcome the Scottish Government’s renewed investment in the whole family support fund and its work to continue to deliver the Promise. But it is so important that in this it recognises the fundamental need for support for very young children, just like the Scottish Child Payment does, so that families get the help they need right from the start.”
Scotland’s Chief Constable Jo Farrell has responded to the Scottish Government’s tax and spending plans for 2026 to 2027.
Chief Constable Farrell said: “I recognise a £90m cash-terms uplift to revenue funding and an improved capital allocation for policing against a challenging public finance picture.
“I set out the funding requirements for policing in evidence during the Criminal Justice Committee’s pre-budget scrutiny work.
“Police Scotland will continue to engage with the Scottish Police Authority and the Scottish Government to understand the full implications of the budget and develop our planning for the year ahead.
“My focus continues to be on prioritising our frontline to deliver safer communities, less crime, and supported victims as part of our vision for policing.”
Social Security Scotland’s Scottish Child Payment is supporting 322,230 children across the country, newly published figures show.
Launched in February 2021, the Scotland-only benefit gives families with low incomes crucial financial support to help with the cost of raising children.
The weekly payment of £27.15 is paid every four weeks for every eligible child under the age of 16 within a household.
Social Justice Secretary Shirley-Anne Somerville said: “Eradicating child poverty is the Scottish Government’s top priority and a national mission.
“This support is helping parents and carers with the essential costs of raising children and is contributing to lowering child poverty rates in Scotland compared with the rest of the UK.
“That progress is the result of our decision to invest in measures that directly support household budgets and improve the wellbeing of children.
“While we should recognise the positive impact this is having for thousands of families, we know there is still much more to do. One child in poverty is one too many, and we remain firmly committed to doing everything we can to support families and give every child the best possible start in life.
“Scottish Child Payment continues to be a central part of that mission, and these figures demonstrate why this support is so important to communities across Scotland.”
New report highlights the impacts of Scottish policies
Scottish benefits are easing the cost-of-living burden for families according to a new evaluation.
The Scottish Centre for Social Research surveyed people in receipt of any of the Five Family Payments, a group of benefits designed to tackle poverty and to improve household finances.
Findings show the payments have a positive impact on recipients’ overall finances and have helped to reduce material deprivation and food insecurity for low-income families. The majority of Scottish Child Payment and Best Start Foods recipients agreed the payments meant they did not need foodbanks.
Feedback also shows the majority of Best Start Foods recipients, who receive a pre-paid card to purchase healthy food, reported that the card enabled their families to have healthy meals more frequently.
Other impacts include a reduction to household debt and borrowing and more children being able to undertake extra-curricular activities, like sport, music or drama.
Recipients also commented that the automatic payment system reduces worry and stress.
Social Justice Secretary Shirley-Anne Somerville met some impacted families at Brunstane Primary School in Edinburgh.
Ms Somerville said: “We want every child to have the best start in life, but we recognise that the cost of living continues to have a negative impact on families across the country.
“It is a moral imperative to offer the best support we can, and I’m pleased that this work found an array of positive, meaningful impacts.
“But we are not letting up. We know there is more to do, which is why, as an example, we are launching the new Two Child Limit Payment in March, which will benefit the families of 43,000 children next year.
“And in the face of challenging economic headwinds and cuts to the UK welfare system, I want to reassure families that our support will continue. No child, nor family, will be left behind by the Scottish Government.”
One parent, Emma Hunter from Magdalene, said: “We are so grateful for the support we received with the healthy start vouchers, school uniforms and child payment.
“It has been such a huge help in easing the financial burden of starting a family and it has made a real difference to our lives.”
Michelle, a mother of three from Edinburgh has shared the impact Scottish Child Payment is having in her daughter’s life
“One of my daughters has autism and ADHD, and Scottish Child Payment allows me to do activities that calm her down and make her happy and that makes a massive difference.”
Figures released yesterday reveal that Michelle’s daughter is just one of 326,255 children who are actively benefiting from Scottish Child Payment.
Scottish Child Payment is unique to Scotland and provides financial support for families, helping with the costs of caring for a child. It is a weekly payment, currently worth £27.15, for every eligible child that a parent or carer looks after who’s under 16 years of age.
Michelle said: “Scottish Child Payment is something that helps you and helps your children when you’re in a difficult financial situation.
“I think there’s sometimes a stigma around applying for it, especially as a single mother, but I highly recommend that those who have yet to apply for it do so.”
Social Justice Secretary Shirley-Anne Somerville said: “Eradicating child poverty is the Scottish Government’s top priority and a national mission.
“Today’s figure show that the Scottish Government is supporting 233,040 individual clients and 326,255 children throughout Scotland, with over 7.5 million paid out in Scottish Child Payment.
“These payments are actively improving the lives of hundreds of thousands of children in Scotland – helping their families to access essentials and experiences they might otherwise miss out on because they live on a low income.
“In the coming year it is forecast we’ll invest a further £471 million, ensuring that this support continues to reach even more families and children who need it.”
We would urge those who are thinking of applying for financial support, to check their eligibility and start their application today.”
UK Government decisions ‘hold back further progress’
New statistics show that child poverty in Scotland has fallen, in contrast to the rest of the UK.
Annual statistics published yesterday show that compared with the previous year’s statistics, relative child poverty in 2023-24 reduced from 26% to 22% in Scotland while absolute child poverty fell from 23% to 17%. UK Poverty statistics published today show levels of relative child poverty at 31% and absolute child poverty at 26%.
Modelling published today suggests that UK Government policies are “holding back” Scotland’s progress. It estimates the UK Government could reduce relative child poverty by an additional 100,000 children in 2025-26 if it heeded Scottish Government calls to end the two child limit, replicate the Scottish Child Payment in Universal Credit, remove the benefit cap and introduce an essentials guarantee.
This model does not take into account the UK Government’s own impact assessment of its welfare cuts announced on Wednesday , which states that they will leave an additional 250,000 people, including 50,000 children, in poverty.
Social Justice Secretary Shirley-Anne Somerville said: “Eradicating child poverty is the Scottish Government’s top priority and we are committed to meeting the 2030 targets unanimously agreed by the Scottish Parliament.
“Our policies are having to work harder than ever to make a difference, against a backdrop of a continuing cost of living crisis, rising energy costs and UK Government decision making. However, we know these policies are working.
“Statistics published today show that, although we have not met the interim child poverty targets, the proportion of children living in relative poverty has reduced and year-on-year rates are now lower than they have been since 2014-15, while the proportion in absolute poverty has also fallen with the annual figure the lowest in 30 years.
“While JRF predict child poverty will rise in other parts of the UK by 2029, they highlight that policies such as our Scottish Child Payment, and our commitment to mitigate the two-child limit, ‘are behind Scotland bucking the trend’.
“But decisions taken by the UK Government are holding us back, and yesterday’s Spring statement will only make things worse. The DWP’s own figures show that proposed welfare cuts will drive 50,000 more children into poverty, which must call into question their commitment to tackling child poverty.
“I have already written to Work and Pensions Secretary Liz Kendall to seek reassurance about the purpose and direction of the UK Government’s Child Poverty Taskforce. The Taskforce’s credibility has been drastically undermined by the policies announced by the UKG in the past few days.”
Responding to yesterday’s official government statistics on child poverty John Dickie, Director of the Child Poverty Action Group (CPAG) in Scotland said: “These latest statistics show that Holyrood polices, especially the Scottish child payment, are working to shift the dial for children in Scotland in the face of poverty rising to record highs across the rest of the UK.
“It is obviously disappointing that progress falls short of the interim targets, but the statistics show that when government invests to support families then child poverty will fall.”
The latest figures show that in the single year 2023/24 22% of children were living in poverty against a target rate of less than 18%, but down from 26% in the previous year. The three-year average rate of child poverty between 2021 and 2024 was 23%, down from 24%.
Across the UK child poverty rose to a record high with 4.5 million (31%) now living in poverty. New analysis from Child Poverty Action Group (CPAG) shows child poverty will rise even higher under the current UK government – to 4.8m by the end of this parliament (2029/30) – unless it takes urgent action including scrapping the two-child limit in its forthcoming child poverty strategy and stepping back from benefit cuts.
The Child Poverty (Scotland) Act, passed in 2017 with the unanimous support of all the political parties, requires the Scottish government to ensure less than 10% of children are living in poverty by 2030/31.
Analysis published earlier this week by independent economists at the Fraser of Allander Institute concluded that “meeting the targets is still feasible but will require sizeable additional investment beyond what is currently proposed” and that “increases to the SCP (Scottish child payment) are the most effective tool available.”
The testimony of struggling parents backs up the picture painted by the new government data.
Lisa, a participant in Changing Realities, a participatory project documenting life on a low income, said: “The Scottish child payment has enabled me and my son to participate in more social and educational activities which normally we would have struggled to afford.
“It alleviates some of the financial pressure and gives me and my son more breathing space to enjoy life. The Scottish child payment has been a ‘game changer’ for me.”
Mr Dickie continued: “The message from the statistics, from the independent experts and from parents themselves is clear. The Scottish child payment is working to reduce poverty but a step change is needed in investment to meet child poverty targets.
“At the same time action is needed to boost earnings from work and reduce the housing and childcare costs that parents face.”
Commenting on the latest child poverty statistics, Mary Glasgow, chief executive of Children First said: “Failing to meet the interim target for reducing child poverty should be a wake-up call to everyone in Scotland. The slight decrease in child poverty doesn’t change the fact we are in the grip of a national childhood emergency.
“Behind these numbers are more than 200,000 children living in grinding poverty without the essentials who are going to bed hungry each night. Poverty has a devastating impact on children’s mental health, wellbeing, education and prospects that can last into adulthood.
“The First Minister says tackling child poverty is his number one priority. We urge him and his government to act now to invest in early help and support for families and to increase the Scottish Child Payment which is the most effective way to alleviate poverty. Children can’t wait.”
The latest child poverty statistics from the Scottish Government can be viewed here: Child poverty summary
Last year Children First worked with 1000 families struggling to make ends meet to provide financial wellbeing support.
If you are a parent or carer who is worried about money, call the Children First support line on 08000 28 22 33 or visit www.childrenfirst.org.uk/supportline to start a web chat.
AberlourChief ExecutiveSallyAnn Kelly OBE said: “Aberlour acknowledges the slight reduction in child poverty however is disappointed that the figures remain significantly above the interim target, highlighting the need for stronger efforts to meet the 2030/31 goal. Too many children in Scotland still grow up in poverty.
“Scottish Government actions, particularly the Scottish Child Payment, are beginning to make a difference. However, with looming financial uncertainty due to UK-level benefit changes, more action is needed over the next five years to sustain progress.
“Despite challenges, the target remains achievable if the Scottish Government prioritises investment, leverages all policy tools, and collaborates with the UK Government where necessary. Increased investment in social security, particularly a significant rise in the Scottish Child Payment, is essential.
“However, social security alone won’t lift families out of poverty long-term. It must be combined with action on housing, employment, childcare, and addressing the public debt crisis. Immediate support is needed for those in greatest need, alongside long-term strategies to build community capacity and create sustainable routes out of poverty.
“Scotland must move from managing poverty to preventing it. The First Minister must uphold his commitment to ending child poverty as a top priority. We cannot fail Scotland’s children.”
Save the Children Scotland’s Fiona King said: “Today’s child poverty stats show that positive policy choices, including the Scottish Child Payment are making a difference, but not nearly enough is being done to give all children a decent start in life.“
Campaigners say it’s not too late to end the injustice of child poverty
Responding to today’s figures on poverty and inequality in Scotland, Poverty Alliance chief executive Peter Kelly said: “People in Scotland want a compassionate country beyond the injustice of child poverty. Today’s figures finally confirm what we all feared – we are not on course to build that better future.
“In Scotland we have clear, legal targets to reduce child poverty that the Scottish Parliament approved unanimously. But with the interim targets now missed, it is vital that our politicians do more to turn their words and commitments into the fundamental action we need.
“Child poverty is shameful. It highlights that our social security system and economy are failing to deliver what we all need to build a better life and a better future. By allowing such levels of poverty to persist we are denying children their rights and undermining the social foundation that they need to thrive, develop their talents, and achieve their potential.
“But it’s not too late. There are concrete, practical things that the Scottish Government can do now to meet our legal child poverty targets in 2031. They can increase the Scottish Child Payment to £40 a week. They can invest in flexible, accessible childcare. They can expand free school meals. They can strengthen the public services that we all rely on. And they can work to build a well-being economy with good jobs, secure hours, and real Living Wages.
“We have choices to make in our country, about how we unlock our country’s wealth to investment in the common future. We must invest in policies like the Scottish Child Payment to invest in our children’s future. Together, we can build a Scotland beyond the injustice of needless poverty.”
New figures, show that as of 31 December 2024, the families of 326,080 children under 16 years of age were receiving vital support from Scottish Child Payment.
Over £1 billion has now been paid to parents and carers since the payment was introduced in February 2021.
Scottish Child Payment is unique to Scotland and provides financial support for families, helping with the costs of caring for a child. It is a weekly payment, currently worth £26.70, for every eligible child that a parent or carer looks after who’s under 16 years of age.
While visiting Craigour Park Primary school in Edinburgh, to talk to parents who receive Scottish Child Payment, Social Justice Secretary Shirley-Anne Somerville said: “Eradicating child poverty is the Scottish Government’s top priority and a national mission.
“Our investment in Scottish Child Payment has seen over £1 billion worth of these payments issued by 31 December 2024; that is money directly in the pockets of those families who need it most.
“Modelling published in February 2024 also estimates that the Scottish Child Payment could keep 60,000 children out of relative poverty this year.
“Scottish Child Payment is actively improving the lives of hundreds of thousands of children in Scotland – helping their families to access essentials and experiences they might otherwise miss out on because they live on a low income.
“In the coming year it is forecast we’ll invest a further £471 million, ensuring that this support continues to reach even more families and children who need it.”
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Head Teacher of Craigour Park Primary, Sally Ketchin, said: “We welcome payments like Scottish Child Payment and Best Start Grants.
“We can see the real difference this money makes to families in our community.”
CASE STUDY
Ashley Forbes lives in Glenrothes with her three children. She said:“The two-child cap came in for Tax Credits when I was pregnant with my third child. That meant I would be losing £60 a week when the baby was born so, obviously, that was quite a scary moment. It was huge.
“I wasn’t working and my partner at the time was only working part-time so money wasn’t great. It felt like £60 was so much to lose, you know, when you have a baby with milk and all that stuff to buy.
“And then when Scottish Child Payment came in, it was a huge relief. I have three kids and they grow so fast. It’s new shoes, new coats and new clothes all the time.
“My eldest two do swimming as well which is a really important skill that you need in life. We wouldn’t be able to do this stuff without Scottish Child Payment.
“I think Scottish Child Payment is great. We couldn’t do without it.”
New figures show over £1 billion paid out to help end child poverty
New figures show that the Scottish Government’s five family payments have reached a landmark figure since their launch, paying over £1billion to families across Scotland to help end child poverty.
The latest statistics released from Social Security Scotland reveal that between February 2021 and September 2024 £905.6 million has been paid out in Scottish Child Payment and a further £172.3 million since the launch of Best Start Grant and Best Start Foods.
The payments support children throughout key stages from pregnancy then birth, to starting school and on to age 16.
Best Start Grant Early Learning Payment, Best Start Grant School Age Payment and the ‘game changing’ Scottish Child Payment are only available in Scotland.
Cabinet Secretary for Social Justice, Shirley-Anne Summerville said:“Ending child poverty is the Scottish Government’s single greatest priority. At a time when families are struggling with the ongoing cost-of-living crisis, we have been delivering payments which offer vital to support families and children at key stages in their lives.
“There is help during pregnancy and in the months after a baby is born; help paying for early learning; help with that all important first day at school and help with buying the healthy, nutritious food that is vital for developing children.
“Then there is the unique Scottish Child Payment. More than 325,000 children and young people were benefitting from the payment by the end of September 2024. Our modelling projects Scottish Child Payment will keep 60,000 children out of relative poverty in 2024-25.”
Best Start Grant Early Learning Payment – one off payment of £314.45 to help with the costs of early learning when a child is between two and three years and six months
Best Start Grant School Age Payment – one off payment of £314.45 to help with the costs of starting school when a child is first old enough to start primary one
Best Start Foods – up to £42.40 every four weeks from pregnancy up to when a child turns three to help buy healthy food
Parents, carers and guardians can get more information at mygov.scot/fivefamilypayments or by calling free on 0800 182 2222.
Support for more than 1.2 million people in Scotland
All Scottish social security benefits are increasing by 6.7% in April, providing more support for disabled people, unpaid carers and people on low incomes.
Scottish Child Payment, which helps the families of more than 327,000 children, is now worth £26.70 per child per week.
A person eligible for the highest rate of Adult Disability Payment will receive £184.30 per week.
Carer Support Payment, Scotland’s newest benefit, has gone up to £81.90 every four weeks. The benefit for unpaid carers launched in three local authorities last year and will be available across Scotland by Autumn 2024.
Social Justice Secretary Shirley-Anne Somerville said: “Our investment in social security helps low‑income families with their living costs, enables disabled people to live full and independent lives, and supports older people to heat their homes in winter.
“This financial year we are committing a record £6.3 billion for benefits expenditure – which is £1.1 billion more than the UK Government gives to the Scottish Government for social security.
“We are making a choice to increase direct support for people who need it the most and that is more important than ever during the current cost of living crisis.”
