Suzi Murning, Policy and Advocacy Advisor in Scotland, looks at what policies the Scottish Government should announce as part of the Emergency Budget Review
To mark the beginning of Challenge Poverty Week, the Joseph Rowntree Foundation released their annual ‘Poverty in Scotland’ report. The report shows 'a society in crisis' and findings reveal that 2 in 3 single parents in Scotland have little or no savings to fall back on to meet rising bills, and 4 in 5 parents with a baby report an impact on their mental health because they are worried about money. These findings reveal the scale of what the families we work with have been telling us all year. Scotland can, and must, do better than this.
What more can the Scottish Government can do protect children?
We welcome the priority given to tackling child poverty by the Scottish Government, the protection of funding for this as a ‘national mission,’ and investment in key actions to boost family incomes, through increasing the Scottish Child Payment (SCP), but JRF’s findings highlight an important point.
While child poverty rates in Scotland are expected to fall as a result (mainly) of the impact of the SCP, this is unlikely to translate into a rise in living standards. As Save the Children highlighted in a recent cost-of-living briefing, the money parents receive from the SCP, even when accounting for the planned increase in November, is dwarfed by the colossal increase in their outgoings. The rising cost of essentials, like food, energy, transport, and childcare is a catastrophe for those already struggling to make ends meet, pulling some into increasing hardship and even destitution.
This means the Scottish Government must look beyond simply reducing child poverty rates and focus also on preventing families falling into deeper and deeper poverty as a result of the cost-of-living crisis.
The response to the crisis
In last month’s Programme for Government statement, the First Minister laid out a number of policies aimed at easing the growing financial pressures on low-income families. This includes giving local authorities the flexibility to provide Discretionary Housing Payments (DHPs) to those struggling to pay for fuel, doubling the fuel poverty fund, and introducing rent freezes. We welcome these actions, but they must only be the beginning of the Scottish Government’s response to the crisis.
Upcoming Emergency Budget Review
All eyes are now on the outcome of the upcoming Emergency Budget Review which Deputy First Minister John Swinney has said will be published on 24th October. It was a relief to hear Cabinet Secretary Shona Robison, who is responsible for Scotland’s child poverty reduction goals, say recently that, as discussions take place about the content of the review, the Scottish Government will continue to prioritise social security spending. This is despite the extremely difficult financial situation the government faces. It was also heartening to hear that an early uprating of Scottish benefits in line with current levels of inflation is being considered.
A different approach
It is clear the Scottish Government has taken, and will continue to take, a different approach to the UK Government in their response to the ongoing crisis. Instead of trying to give tax-cuts to the rich, the Scottish Government is putting more money into the pockets of those who need it most. This is the only way families will survive this crisis and build resilience for the next.
However, the scale of the crisis means the Scottish Government must go further to boost incomes and target support at families with children.
Protecting children in poverty
As we look towards the outcome of the emergency budget review, Save the Children believes the Scottish Government must:
- Uprate Scottish Benefits in line with current levels of inflation as soon as possible;
- Double the planned bridging payments for those not yet in receipt of the Scottish Child Payment;
- Make a further one-off payment of £260 to recipients of Scottish Child Payment;
- Double Child Winter Heating Assistance to £418.20;
- Boost the value and administrative responsiveness of the Scottish Welfare Fund.
As well as actions from the Scottish Government to put more money in the pockets of struggling families, the strains on the Scottish Government’s budget makes it even more important that employers step up. Sixty-eight percent of children in poverty live in a household where someone works, showing the importance of fair work in the fight against child poverty. Parents have told us they need higher wages and more workplace flexibility so they can increase their hours to make up for increasing costs.
For the children worst-impacted by the cost-of-living crisis, the effects will go beyond feeling cold and hungry this winter; experiences of deep poverty could impact children way into the future. When the outcome of the Emergency Budget Review is published, it must be clear that no stone has been left unturned in a bid to protect children in poverty.
