The Poverty Alliance have launched Weathering the Storm, a summary report from the Get Heard Scotland (GHS) programme in 2020/21.
GHS is a programme coordinated by the Poverty Alliance and funded by the Scottish Government as part of Every Child Every Chance, the Scottish Government’s Tackling Child Poverty Delivery Plan.
GHS is designed to help people on low incomes get their voices heard on the policies and decisions that most impact their lives and their communities.
Get Heard Scotland gathers evidence on the experience of poverty, from people who are living on low incomes, as well as from organisations and groups working on the ground to help address poverty. Crucially, it focuses on the solutions needed to loosen the grip of poverty on people’s lives.
The report that has been published today covers GHS engagement in 2020/21, which focused primarily on the local authority areas of Inverclyde and Renfrewshire. Covering issues like mental health, employment, food insecurity, digital access, debt, and social security, it provides an overview of the experiences of people living on low incomes – as well as of organisations working with people on low incomes – during the Covid-19 pandemic.
Peter Kelly, Director, Poverty Alliance, said: “Over the last 18 months, the grip of poverty has tightened on the lives of people across Scotland. But it is important to remember that, even before the pandemic, over one million people in Scotland were living in that grip.
“We know that not just listening to – but acting on – the voices and experiences of people living in poverty is key to ending poverty in Scotland. So we are pleased to publish this report today, that focuses primarily on Inverclyde and Renfrewshire but which has relevance for every part of the country.
“In both local authorities, there has been a genuine desire to find more effective ways of meaningfully involving people with experience of poverty in shaping local anti-poverty policy. We hope that the work as part of Get Heard Scotland will have contributed towards making participatory policy making the norm in the future.”
Public Health Scotland supports retaining the £20 a week uplift to universal credit and working tax credits, brought in by the UK Government in April 2020, to help create a Scotland where everybody thrives.
The social security top-up payment was introduced in April 2020 to help low-income households deal with the economic impact of the COVID-19 pandemic, and is due to expire in October.
The evidence is becoming stronger that increasing the incomes of the poorest, including by increasing means-tested benefits, can help narrow the gap in life expectancy and improve mental health and wellbeing.
All of those families affected claiming working tax credits are already in employment, as are 35% of people claiming universal credit. Another 31% of people claiming universal credit have health problems or caring responsibilities which compromise their ability to secure and retain jobs. Therefore, focusing on getting people into work, in itself, will not be sufficient.
Martin Taulbut, Public Health Intelligence Adviser at Public Health Scotland said:“People with higher incomes are healthier and live longer. Experiencing material hardship can have a profound direct impact on health by affecting our ability to buy the goods and services that support good health and underpin healthy life expectancy.
“The increase in value of universal credit and tax credits has reduced poverty, protecting the physical and mental health of low-income families and supporting working-age adults’ ability to find and keep good work. Decreasing the value of means-tested benefits is likely to result in a decline in the (already poor) health of the unemployed and low-income families, particularly after the experiences of the COVID-19 pandemic.
“As well as enabling families to live healthier lives now, action taken to improve and protect the health of children from early in life pays dividends for decades. By embedding health and wellbeing into policy decisions across areas of economy, employment and mental health, Scotland has an opportunity to make real progress on national outcomes.”
Low income parents are being encouraged to apply for the financial support they are eligible for. This year’s Best Start Grant School Age Payment opens today to families who get tax credits or certain other benefits and have a child who was born between 1 March 2016 and 28 February 2017.
Even if the child is not starting school, eligible parents and carers should still apply before the closing date on 28 February 2022.
The payment is part of five family payments delivered by Social Security Scotland that also include: Best Start Foods, Best Start Grant Pregnancy and Baby Payment, Best Start Grant Early Learning Payment and Scottish Child Payment.
Best Start Foods payments are set to increase to £4.50 per week on 1 August to support low income families to buy healthy food for children under the age of three.
To maximise the support available to families, income thresholds that apply to certain qualifying benefits are also set to increase.
Minister for Social Security Ben Macpherson said: “The Scottish Government is working hard to tackle poverty and to create a fairer society, with the powers and resources that we have.
“As part of this, we are set to increase our Best Start Foods payments within the first 100 days of this new term of government, and we are determined to make sure families with young children get all the financial help that is available.
“We are providing support worth about £5,000 by the time a child turns six through our Best Start Grant, Best Start Foods and the Scottish Child Payment. People can apply for these payments on one simple, straightforward form – and I urge all those who are eligible to make sure they apply by visiting mygov.scot/beststart or calling 0800 182 2222.
“Access to financial support is important and we want people get the money they are entitled to. So please check if you’re eligible and, if so, make sure to apply – and let others know too, so that together we can help build a fairer society here in Scotland.”
‘We are putting tackling poverty at the heart of the Budget’ – Social Security Secretary Shirley-Anne Somerville
Tackling deep-seated poverty and inequality will be supported by increased funding from the 2021-22 Scottish Budget.
To ensure all children have the best start in life, £68 million will be invested in the Scottish Child Payment, and £53 million will fund universal Free School Meals to all children in primary one, two and three.
Communities impacted by the coronavirus (COVID-19) pandemic will continue to be supported through funds aimed at helping them recover and rebuild.
The 2021-22 Scottish Budget includes:
a near doubling of spending through the Tackling Child Poverty fund with £23.3 million of investment, and providing £6 million to local authorities to continue providing a school clothing grant worth at least £100 to every eligible child
£3.6 billion for social security to carers and those on low incomes
£150 million for fuel poverty and energy efficiency measures
£711.6 million for affordable housing and a new £55 million programme to support town centres
£32 million to promote equality and human rights, including actions to ensure this approach is embedded across government and the wider public sector
£15 million to further support children and young people with Additional Support Needs
more than £26 million of investment in the vital Third Sector
£81.6 million for projects to support community regeneration, town centres and 20 minute neighbourhoods – where people can meet their needs within a 20 minute walk from their home
over £12 million to support the Ending Homelessness Together action plan, including specific actions to scale up Housing First, end the use of communal night shelters, advance legislative protections for people experiencing domestic abuse and explore alternative routes to reduce migrant homelessness
Social Security Secretary Shirley-Anne Somerville said: “We are putting tackling poverty at the heart of the Budget. In two weeks we introduce our new game-changing Scottish Child Payment, backed by investment of £68 million.
“As well as mitigating the impact of UK Government welfare cuts, we are supporting carers, young people, and low income families through our range of new benefits. This year also sees the start of the introduction of the first disability benefits as we continue to establish a social security system that is based on dignity and respect and investing in our people.”
Communities Secretary Aileen Campbell (above) said: “In addition to responding to the impacts of the coronavirus pandemic, this budget is investing in actions designed to tackle deep-seated poverty and inequality including almost doubling our child poverty budget to £23.3 million.
“This means we will deliver our £50 million Tackling Child Poverty Fund commitment in full, continuing with investment in actions including our Parental Employability Support Fund, Access to Childcare Fund and innovative Children’s Neighbourhoods Scotland programme.
“Funding for more affordable, greener housing is at the heart of the Scottish Budget, contributing to our net-zero ambitions while helping to ensure everyone has a home that meets their needs.
“We will also invest over £26 million in the local and national Third Sector infrastructure, support the capacity and growth of social enterprises, and ensure the Third Sector can help people and communities recover from the impact of the pandemic.”
Scotland’s least well-off families have seen a marked increase in their income from three Scottish Government benefits, according to an evaluation report published yesterday.
The evaluation of the three Best Start Grant payments shows that families on the lowest incomes were able to buy essential items for their children as a result of these new benefits.
Best Start Grant is available to families on low incomes as their children reach certain key stages. They are able to access this whether in or out of work as long as they get one of eight qualifying benefits or tax credits available through the Department for Work and Pensions or HMRC.
People receiving the payments said that the money helped them stop getting into debt or having to cut down on other essential household spending, such food and bills. People were able to use the money to help buy essential items for their children like cots and prams, as well as to arrange days out for their family or to buy books and clothing.
The most common qualifying benefit among recipients was Child Tax Credit (57,055), followed by Universal Credit (44,810), Working Tax Credit (23,560), and Income Support (18,030). Other qualifying benefits include Housing Benefit, Jobseeker’s allowance, Employment and Support Allowance and Pension Credit.
Parents and carers in and out of work who get benefits or tax credits are being encouraged to check if they are eligible and apply.
Social Security Secretary Shirley-Anne Somerville said: “Our full Best Start Grant package has been in place since June 2019. I’m delighted that just a year and a half later that we are already getting feedback that this money is making a real difference to people’s lives.
“We continue to work hard to make sure that everyone accesses the support they are entitled to. I often hear families say that they don’t think that they can access this support because they are working. I’m glad to see so many families who are in work and on low incomes getting this extra boost. And I know that more families than ever are accessing benefits and this is important additional help for you too.
“I would urge anyone who gets a benefit or tax credits to check if you are eligible for these payments and to apply. And those eligible for Best Start Grant are now able to apply for the £10 per week Scottish Child Payment that will start in February 2021. Parents and carers can make sure they are getting everything they are entitled to by talking to the Money Talk team. This service and the Best Start Grant payments are there to help families maximise their income and to support efforts to tackle child poverty.”
Paula, from Forfar who received the Best Start Grant Early Years Payment for her daughter, Arwen 3 said: “I work 12 hours a week as a treasurer for our local church but because I also receive Universal Credit due to being on my own with two children, I qualified for the Best Start Grant Early Years Payment.
“It was easy and straightforward to apply online and money was paid direct into my bank account once the application was completed.
“I am very good at planning ahead and budgeting for uniforms or school shoes or normal shoes or just clothes and jackets, that kind of thing, so to receive that extra money was just a nice thing for the family and for us to spend time together.
“We received the payment during the summer holidays which was a great bonus, it let us have the opportunity to go away for a couple of family day trips to places like the safari park.”
During the course of the evaluation research, a recipient of Best Start Grant Pregnancy and Baby Payment said: “I didn’t apply until after she was born because I just thought I’ll not get it.
“Because you do kind of think ‘och no I’m not going to, I’ll never get that’ and luckily when the baby was born I spoke to my friends a wee bit more and I was like ‘do you know what. I will’. What’s the harm? You pay your taxes all your life and work really hard so why shouldn’t you get something back?”
parents and carers aged 18/19 do not need to be in receipt of a qualifying benefit if they are dependent on someone else, i.e. they are named on their parent or carer’s benefit claim. Parents and carers under the age of 18 do not need to be on any payments or benefits to qualify for Best Start Grant
Best start Grant is three payments to help families at key stages in a child’s life
The devolved administrations have united to call on the UK Government to ensure those who are entitled to financial support are receiving it.
Social Security Secretary Shirley-Anne Somerville has joined Ministers from Wales and Northern Ireland in writing to the Secretary of State for Work and Pensions, Thérèse Coffey, asking to work together to create a benefit take-up strategy.
The devolved nations have also asked the UK Government to make permanent the current £20 a week increase for Universal Credit (UC) and extend it to the benefits which will eventually be replaced by UC, such as Working Tax Credits. The uplift was introduced to help low-income families cope with the extra cost of the COVID-19 outbreak, and is to come to an end in April 2021.
Ms Somerville said: “It’s vital that we make every effort to ensure everyone is aware of and able to access the support available to them.
“Maximising benefit take-up is a moral obligation, especially in these uncertain times when there is clear evidence of increased need for support.
“The £20 uplift was needed before the pandemic, and so it is vital now. People must be given the certainty that it will be made permanent and that they are not facing a cliff edge in a matter of months when this support is pulled.”
The Welsh Government’s Deputy Minister for Housing and Local Government Hannah Blythyn said: “The pandemic will cast a long shadow on those who are most in need and has reiterated the importance of a robust financial safety net for individuals and families, ensuring existing funding programmes have the maximum impact on the lives of those in poverty.
“Having a strategic UK approach will ensure that everyone can get the support they need during this difficult time.”
The Scottish Government published its first Benefit Take-up Strategy in October 2019, and will publish the next one by October 2021.
Northern Ireland’s benefit take-up initiative Make the Call has generated over £260 million in additional annual benefits for its residents since 2005.
It aims to ensure that every individual and household is receiving all the social security benefits and other supports and services to which they are entitled. The most recent results for 2019/20 show that this has benefited just under 10,000 people who are now better off by an average of £88 per person per week.
The Department for Work and Pensions has no published approach to promoting UK benefits or supporting people to access the money which they are due.
Many people need to be in receipt of a DWP benefit in order to claim other benefits – for example the Scottish Child Payment, where eligibility is reliant on receipt of UC, or Pension Credit which means people can claim a Council Tax reduction, or those over 75 qualify for a free TV licence. So it is vital people are aware of what they are entitled to.
As part of their Benefit Take-up Report – published 11 March 2020 – the Scottish Parliament’s Social Security Committee recommended that the UK Government develops a strategy that aims to maximise take-up of reserved benefits across the UK.
A report by the National Association of Welfare Rights Advisors, published in September, showed a 40% reduction in claims for Personal Independence Payment (PIP) being made during the pandemic. Almost 90% of those surveyed have never seen a take-up advert for PIP.
Independent Age has called for ‘an ambitious action plan detailing how the UK government will work to increase the uptake of Pension Credit over the next five years’. More details here.
This follows research which concluded that if Pension Credit take-up was lifted from 61 per cent to 100 per cent, then almost 450,000 pensioners could be lifted out of poverty, reducing pensioner poverty to its lowest ever level, and resulting in substantial savings to the NHS and social care systems over the long term.
New approach will ensure dignity, fairness and respect
There will be no DWP- style assessments to access disability assistance under the new Scottish social security system, says Social Security Minister Shirley-Anne Somerville.
Decisions will be made using information gathered through the applications process including from health care providers
Should more detail be required to make decisions on an application for the new Adult Disability Payment, it will be gathered through a consultation which will be based on a conversation between a healthcare professional employed by the Scottish Government and the client. There will be no private sector involvement in this process.
Most consultations will be by phone but can be face to face in a GP practice or even at home, whatever works best for the person applying. No-one will be asked to carry out tasks in order to prove the impact of their disability or health condition.
Cabinet Secretary for Social Security and Older People, Shirley-Anne Somerville, said: “Two of our principles enshrined in law is that social security is a public service and an investment in people – it is there for all of us when and where we need it. So no one should ever experience stress when accessing the support they are entitled to.
“People who require disability assistance will already face a number of challenges and interacting with a benefit system shouldn’t become another one. That is why I am pleased to set out plans for Scotland’s new system – plans that will make sure that people are treated with dignity, fairness and respect.
“We want people to feel that they have been treated well and fairly at every stage – from having an application form that is clear and easy to use right through to how we make sure someone is still able to access money when they want to appeal our decisions.
“Getting rid of degrading assessments that our Experience Panels told us were ‘traumatic and intrusive’ is the right thing to do. It is an obvious change but one that will make a massive difference to people.
“I’d like to thank the people who have worked with us to design this service – the volunteers on our Experience Panels and stakeholders. Together we will deliver a markedly different benefit system and create a public service that we can all be truly proud of.”
The Covid-19 pandemic has revealed our benefits system to be unfit for purpose. It now needs a radical transformation
The failings of the UK’s social security system have been exposed as workers whose income has been hit by the Covid-19 crisis have sought to rely on the safety net, and in many cases promptly fallen through its holes (writes TUC’s ANJUM KLAIR).
This is the result of years of deliberate attacks on the social security system, with around £34 billion of cuts made to social security since 2010.
Over a decade of austerity, including benefit caps and freezes, a punitive sanctions regime and the introduction of the five-week wait in universal credit, has pushed working families into debt and poverty.
What has the current crisis exposed?
Claimants seeking financial support since the start of the pandemic are now experiencing the inadequacy of benefit rates: if you become unemployed, the basic rate of universal credit is £94 a week. This is around a sixth of average weekly pay.
The inability of the welfare system to cushion the financial fall for new claimants can be seen in the soaring demand on food banks during April: distribution of food parcels increased by 89 per cent compared to the same period in 2019 and for children there was a 107 per cent rise.
A survey on people’s experiences of the benefit system during the pandemic found 75 per cent of those claiming universal credit felt it would not stretch to cover their bills.
New universal credit claimants must wait five weeks for their first payment. Therefore, the system fails to support people when they are at their most vulnerable, and adds to the turbulence of their finances.
Advance loans are available, but these must be paid back out of future meagre benefit payments. People who have been reluctant to claim cite the fear of falling into debt.
Harsh and unfair rules
Callous rules have been introduced since 2010 to reduce eligibility and save money.
The benefit cap limits the sums that can be received in social security payments, without reference to household need. Analysis by the Child Poverty Action group, predicts that up to 40,000 households are likely to be affected by the benefit cap as a result of the pandemic, the vast majority of whom will be families with children.
Introducing the two-child limit for social security also breaks the fundamental link between need and what a family receives. A quarter of a million households containing 911,000 children have been affected by the policy since its introduction. It is estimated that 60,000 families could be affected as a result of the Covid-19 crisis.
Harsh and unfair rules on conditionality and sanctions have been justified to motivate people to engage with job centre support and take active steps to move closer to work. However, the evidence of the effectiveness of this policy is limited.
The UK government has ended a three-month pause on the requirement for people receiving universal credit to prove that they are looking for work. However, the job market has shrunk dramatically, and as the job retention scheme winds up the challenges of finding work will be enormous.
The current crisis has highlighted the unfortunate situation of those living in the UK under the ‘No Recourse to Public Funds’ policy (NRPF), introduced in 2012. It is not right that those with the legal right to live and work in the UK and pay taxes are not entitled to access the vast proportion of social security needed in times of crisis.
NRPF restrictions have pushed working families into poverty, forcing them into unsustainable debt and into homelessness or unsafe, overcrowded, insecure housing. Since the Covid-19 outbreak, their situation has worsened considerably; they have had to choose between their own health, public health, and the financial wellbeing of their household.
We need to transform and revitalise our safety net.
Many people need to rely on the social security system at some point in their lives. Illness and unemployment can strike anyone at any time, as the pandemic has shown. And when this happens we should be able to turn to social security to help us.
We urgently need a political commitment to protect the vulnerable.
The cost of adequately funding the social security budget is small compared to the cost of not acting, which includes both the deep social costs of inequality, and the impact of millions of families with less spending power.
Making our social security system fit for purpose requires fundamental changes, including scrapping universal credit.
The immediate priority, however, is for the government to devise an urgent plan to provide financial support and security to those who need it most.
Immediate steps to fix our social safety net
Universal credit and other benefits must be substantially reformed, by:
Raising the basic level of universal credit and legacy benefits, including jobs seekers allowance and employment and support allowance, to at least 80 per cent of the national living wage (£260 per week).
Ending the five-week wait for first payment of universal credit by converting emergency payment loans to grants.
Removing the savings rules in universal credit, allowing more people to access it.
Significantly increasing benefit payments to children and removing the two-child limit within universal credit and working tax credit.
Ensuring no-one loses out on any increases in social security by removing the arbitrary benefit cap. In addition, no one on legacy benefits should lose the protection of the managed transition to universal credit as part of this change.
The suspension on conditionality requirements for universal credit needs to remain.
Sick pay must cover the basic costs of living
Statutory sick pay must be sufficient to cover basic living costs. Weekly payments must rise from £95.85 to the equivalent of a week’s pay at the Real Living Wage – around £320 a week.
The lower earnings limit for qualification for sick pay must be removed to ensure everyone can access it, no matter how much they earn.
Wider package of financial support for households
The NPRF restrictions need to be removed permanently. Everyone living in the UK must have access to public funds.
Introduce a wider package of support for households, by increasing the hardship fund delivered by local authorities. A hardship fund should not just be there for the current crisis; government should put in place a fund that provides a permanent source of grants to support those facing hardship.
Holyrood’s Social Security Committee has backed a Bill which would allow adult benefit claimants who consent to nominate an appointee to claim benefits on their behalf. However MSPs have warned that suitable safeguards must be put in place to limit fraud and the exploitation of vulnerable people.
The Committee has recommended the Bill be amended to include safeguarding principles that underpin the detail of how the appointee system will work and protect it from abuse. They have urged the Scottish Government to bring forward detailed guidance which should also be statutory.
The Committee published its Stage 1 report in response to the Social Security Administration and Tribunal Membership (Scotland) Bill which makes changes to the Social Security Act of 2018.
They have also backed a change which would allow health professionals, other than doctors, to verify that a claimant is terminally ill meaning their disability benefit claim would be fast-tracked.
Bob Doris MSP, Convener of the Social Security Committee, said: “The Committee welcomes this legislation and strongly supports the general principles of this Bill including allowing anyone in receipt of benefits to appoint someone to collect benefits on their behalf.
“However, submissions to the Committee from the Equality and Human Rights Commission (EHRC) and the Law Society of Scotland outlined that without suitable safeguards in the legislation, the appointee system would not be compliant with human rights legislation and could be open to abuse.
“The Scottish Government’s principal safeguard is that consent must be given. However, the legislation should go further and build in additional safeguards such as the ability to challenge appointee decisions, undertake periodic reviews and resolve disputes.
“We are also keen to see amendments brought forward at Stage 2 which would ensure there is a duty to inform people of their eligibility for all top up benefits including the Scottish Child Payment.”
Social Security Secretary Shirley Anne Somerville has updated Parliament on the impact of coronavirus (COVID-19) on social security services in Scotland.
The majority of Social Security Scotland staff are now working from home to support efforts to slow the spread of Covid-19. The delivery of existing benefits continues with applications being received, processed and payments being made.
On benefits due to be introduced from this year, the Cabinet Secretary advised that, although they were on track to deliver these benefits, plans have had to change as a result of the ongoing pandemic.
The Scottish Government, DWP, local authorities and health and social care practitioners – who are all required to develop and deliver these benefits – are currently focused on the response and recovery from COVID-19.
As a result, the introduction of Child Disability Payment and the Scottish Government’s replacement for Personal Independence Payments will be delayed.
UK Ministers have agreed that they will continue to deliver disability benefits to Scottish clients over a longer transition period.
Scottish Child Payment, which was due to be introduced from this autumn, will also be delayed. The Scottish Government will focus its resources to deliver this as soon as practicably possible. The aim is to start taking applications by the end of 2020 with payments being made from 2021, subject to sufficient staff being in place.
In her statement, Ms Somerville also outlined the markedly different approach that the Scottish Government plans to take in its delivery of disability benefits. The new decision-making process for this in Scotland will mean no face-to-face assessments and decisions will be informed by the professional judgement of health and social care practitioners – not assessors.
The new process will involve the following steps:
Social Security Scotland will make decisions using the information provided by applicants and checking this against existing guidance in the first instance
where it is not possible to make a decision, applicants will be able to tell Social Security Scotland about the health and social care professionals who already support them. Social Security Scotland will then be able to contact those professionals to collect supporting information
when it is the only practical way of collecting the information, a minority of working age clients will be invited to a discussion with a health and social care practitioner. If such a client consultation takes place, it would be arranged to suit the client, and the majority of these consultations are expected to be conducted by phone.
Ms Somerville said: “Our priority is maintaining our front-line services and delivering the seven benefits we have in place to support low income families, carers and people facing a bereavement.
“The Scottish Government, DWP, local authorities and – importantly – our health and social care services are focused on responding to the ongoing pandemic. When we get through this, these organisations will then take time to recover.
“We have had to take this into consideration in our plans for future benefits. Our approach to disability assistance was grounded in the professional judgement of health and social care practitioners and they are rightly needed elsewhere at this time. We also need to factor in that there will likely be further impact on Scottish Government and partner organisations staffing levels due to illness or caring responsibilities.
“As such, I have had to take the difficult decision to halt the introduction of disability benefits that were due within the coming year. These will continue to be delivered by the UK Government. This is the only way to ensure people continue to get the financial support they need. It provides certainty and security of payment at a time of great anxiety.
“While I cannot make guarantees around a revised timeline for the introduction of these benefits, I can guarantee that the work will not stop. And I will provide an update to timelines as soon as I am able to do so.
“We will prioritise delivering the Scottish Child Payment and we will do everything humanly possible to deliver this payment as soon as practicably possible. This new payment will play a major part in tackling child poverty, helping those who may be facing even more hardship as a result of coronavirus, and our remaining resources will be directed at that.”
