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End of the two child cap coming next year in Scotland
End of the two child cap coming next year in Scotland

Edinburgh Reporter

time4 days ago

  • Business
  • Edinburgh Reporter

End of the two child cap coming next year in Scotland

During a visit to a mother and toddler group in Portobello, Social Justice Secretary Shirley-Anne Somerville has confirmed that The Scottish Government will 'effectively' scrap the impact of the two-child limit from 2 March 2026. When she visited Busy Bees Bellfield parent and toddler group Ms Somerville said the introduction of the Two Child Limit Payment will mean 20,000 fewer children will be living in relative poverty in 2026-27, according to modelling carried out by the Scottish Government. Ahead of a statement to parliament on the publication of the annual report on Best Start, Bright Futures, which is the Scottish Government's child poverty strategy, Ms Somerville said:'The Scottish Government has consistently called on the UK Government to end the two-child cap. Reports suggest that they are looking at the impact it is having. But the evidence is clear and families and Scotland can't wait any longer for the UK Government to make up its mind to do the right thing and scrap the cap once and for all. 'The Two Child Limit Payment will begin accepting applications in March next year. At less than 15 months from when we announced this in the Scottish budget, this will be the fastest that a Scottish social security benefit has been delivered. 'This builds upon the considerable action we have taken in Scotland, including delivering unparalleled financial support through our Scottish Child Payment, investing to clear school meal debts, and continuing to support almost 10,000 children by mitigating the UK Government's Benefit Cap as fully as possible. 'However, austerity decisions taken by the UK Government are holding back Scotland's progress. Modelling published in March makes clear that if the UK Government act decisively on child poverty, they could help to take an estimated 100,000 children out of poverty this year.' The UK Government's two child cap is a policy in place since 2017 which restricts any universal credit payment to just two children in one family. This means that families with three and more children cannot have any means-tested support for them. (There are limited exceptions.) The Child Poverty Action Group said that this tax on siblings is 'the biggest driver of rising child poverty in the UK today. It breaks the link between what children need and the support they receive.' Government figures show that one in 9 children are affected by this cap on benefits, and almost 60% of those who are affected by the policy have at least one parent who works. If it is lifted then Treasury Minister, Torsten Bell, said he believes this measure alone could lift 470,000 children in the UK out of poverty. The UK Government is reportedly considering getting rid of the measure which was introduced by the Conservatives, having said they would remove the measure 'when fiscal conditions allow', and the scrapping of this would cost around £3.5 billion a year. The government is due to announce its child poverty strategy in the autumn of this year. Photo courtesy of The Scottish Government Like this: Like Related

NZ's means-testing creep
NZ's means-testing creep

Newsroom

time08-06-2025

  • Business
  • Newsroom

NZ's means-testing creep

Whatever age we're at, means testing for benefits is creeping into our lives. From the Best Start allowance for parents of newborns, to the parents of teens applying for Jobseeker, and those in KiwiSaver earning over $180,000. But when it comes to the old age pension, means testing is too touchy politically, says NZ Herald political editor Thomas Coughlan. He tells The Detail why the pension is off limits, for now. 'There are things we get universally. Universal free education, a lot of health services are free. But cash payments, those are mostly means-tested with one big exception.' Every New Zealander who hits 65 is entitled to NZ Superannuation. 'You could be a billionaire or you could have absolutely nothing and you will get it. 'Culturally, politically we tell ourselves that we earn superannuation, we work hard we pay taxes our whole lives and when you retire you deserve to get the benefit from the government that you have paid for for your entire working life. That is the political bargain, I guess, at the heart of superannuation.' Means testing superannuation is also not as straightforward as other benefits where Inland Revenue knows exactly how much beneficiaries or their parents earn. But most superannuitants don't work, making a means test on income difficult to manage. That leaves asset or wealth testing, 'which is just uranium wrapped in barbed wire'. Coughlan says raising the retirement age is seen as the better of 'two horrible options' and National has already signalled plans to gradually raise it to 67. But that is also fraught. The Retirement Commissioner Jane Wrightson doesn't like either option but is 'more keen on the consideration of means testing than I am of raising the age'. 'But if that became a thing (raising the retirement age) then I would be arguing that it's a really comprehensive and well-thought-through policy change that considers a retirement system as a whole, not just about NZ Super, not just about KiwiSaver but the impact overall on future citizen New Zealand pensioners,' Wrightson says. She calls the debate around superannuation a gender issue. 'The commentators are mainly men. The issues around NZ Super, and who gets it and when, need to be looked at with a really strong gender lens because women are the ones who get disproportionately affected.' The Detail also talks to pensioner Doug Beever in Australia where the pension kicks in at 67 and is means-tested. Beever says he's happy with the arrangement because all of his working life he has been paying into a private retirement fund, a compulsory version of a KiwiSaver scheme that has been in place for decades. Wrightson says that is the difference between the two countries and why we can't copy Australia's pension model. The historic superannuation plan is a reason why the country is quite well-off, 'because those funds are in the billions and billions now. And secondly, people have got a decent pot themselves, so when you get that you can absolutely then talk about means testing, you can talk about raising the age … you've got more levers to your bow when your citizens have been protected by a decent regulatory environment. 'This is not what's happened here.' Check out how to listen to and follow The Detail here. You can also stay up-to-date by liking us on Facebook or following us on Twitter.

High hopes for early childhood centre
High hopes for early childhood centre

Otago Daily Times

time29-05-2025

  • General
  • Otago Daily Times

High hopes for early childhood centre

It is hoped a newly opened early childhood centre in Cromwell's fast-growing Wooing Tree Estate will offer much-needed relief to local families, easing pressure on waiting lists at other centres bursting at the seams. BestStart Wooing Tree opened at the end of April on the edge of the new neighbourhood, beside State Highway 8B and close to the entrance of the pedestrian tunnel under the highway, linking it to the town centre. "Interest from local families has been very strong, which reflects the growing need for early childhood education in the Cromwell area," centre manager Emma Stone told The News. "We've had a steady stream of inquiries and are now taking enrolments." For months — if not years — some parents were enrolling their children as soon as they learned they were pregnant, desperate to secure a spot in a town where demand for childcare for under-5s vastly outstripped supply. Cromwell-based mothers support group Mums4Mums co-ordinator Kylie Murdoch said the shortage had placed enormous stress on working households, particularly those dependent on two incomes to manage the region's higher-than-average housing costs. Ms Murdoch said it was still too early to know the impact of the opening of the new centre, but feedback from young families suggested demand was "levelling out". Parents had told other media in the area that the lack of childcare availability had made it difficult — if not impossible — for some to return to work after parental leave, with women disproportionately affected. Some had jobs lined up or contracts signed, only to be forced to delay or abandon their return to the workforce because they could not secure the hours they needed in care. Ms Murdoch said, with the changing job market, she just hoped enough work opportunities would be available for parents that needed them as childcare became more available. Ms Murdoch said there was one upside to the childcare squeeze, "it's created a sense of community with the mums". "They've worked together and found other ways [to support each other]." Meanwhile, Ms Stone advised families interested in enrolling children at the Wooing Tree preschool to "get in touch as soon as possible". BestStart Wooing Tree can cater for up to 80 children, aged three months to 6 years. Soon-to-be-4-year-old Tyson Browne told The News his favourite thing about the centre was its slide.

Govt's Budget Balanced On The Backs Of Low-Income Families
Govt's Budget Balanced On The Backs Of Low-Income Families

Scoop

time29-05-2025

  • Politics
  • Scoop

Govt's Budget Balanced On The Backs Of Low-Income Families

Press Release – Green Party Poverty is a political choice this coalition is repeatedly choosing. Once again, we see the wellbeing of thousands sacrificed in the name of superficial savings and cowardly games of political hot potato, says Ricardo Menndez March. The Government is quietly leaving some of our poorest families hundreds of dollars worse off, ignoring warnings that changes to the accommodation supplement and public housing subsidies will disproportionately target disabled, older, Māori, Pasifika, and young people. 'This is a stealth cut, pushed through with no acknowledgement of the harm it will cause,' says the Green Party's spokesperson for Housing, Ricardo Menéndez March. 'Housing is a human right. We can build an Aotearoa in which everyone has what they need, and nobody is left behind. 'Instead, the Government hoped we wouldn't notice that, hidden under headlines about KiwiSaver and Best Start changes, lies a major policy shift that will leave 13,200 families worse off by $100, even up to $200 per week*. 'Changes to how the Accommodation Supplement is calculated means that income from boarders–which previously were partially exempt because the Ministry of Social Development (MSD) understood these boarders were often family members–now fully counts against eligibility. 'MSD flagged early on that increased hardship was expected to be experienced by disabled people, young people, older New Zealanders and Māori and Pasifika peoples. 'People who receive the accommodation supplement, by definition, already have unaffordable rents. $100 or $200 a week may not feel much for a Prime Minister out of touch with reality, but for thousands of families it's a lifeline that allows them to keep a roof over their head, put food on the table and pay their bills. 'MSD also noted that any 'savings' were likely overstated**, as costs were simply going to be shifted to emergency housing and hardship grants. 'Poverty is a political choice this coalition is repeatedly choosing. Once again, we see the wellbeing of thousands sacrificed in the name of superficial savings and cowardly games of political hot potato,' says Ricardo Menéndez March. Notes: *An estimated 13,200 households will be affected (7,000 on accommodation supplement, 6,200 on public housing subsidies). On average, the 7,000 households with boarders receiving the Accommodation Supplement will be $100/week worse off, and people with 3 boarders would be $202/week worse off. Affected households receiving public housing subsidies would see an average increase of $132/week to the cost of their rent. (Page 21 of the report) **The Government is saving $150m over four years by stripping support (Accommodation Supplement + Income Related Rent Subsidy) from around 13,200 households who have boarders. MSD has told the Government that the savings are likely to be overestimated (page 7 and bottom of page 15 of the report). This is due to people needing hardship assistance, emergency housing, etc as a result of these changes creating costs for other parts of the system.

Govt's Budget Balanced On The Backs Of Low-Income Families
Govt's Budget Balanced On The Backs Of Low-Income Families

Scoop

time29-05-2025

  • Politics
  • Scoop

Govt's Budget Balanced On The Backs Of Low-Income Families

Press Release – Green Party Poverty is a political choice this coalition is repeatedly choosing. Once again, we see the wellbeing of thousands sacrificed in the name of superficial savings and cowardly games of political hot potato, says Ricardo Menndez March. The Government is quietly leaving some of our poorest families hundreds of dollars worse off, ignoring warnings that changes to the accommodation supplement and public housing subsidies will disproportionately target disabled, older, Māori, Pasifika, and young people. 'This is a stealth cut, pushed through with no acknowledgement of the harm it will cause,' says the Green Party's spokesperson for Housing, Ricardo Menéndez March. 'Housing is a human right. We can build an Aotearoa in which everyone has what they need, and nobody is left behind. 'Instead, the Government hoped we wouldn't notice that, hidden under headlines about KiwiSaver and Best Start changes, lies a major policy shift that will leave 13,200 families worse off by $100, even up to $200 per week*. 'Changes to how the Accommodation Supplement is calculated means that income from boarders–which previously were partially exempt because the Ministry of Social Development (MSD) understood these boarders were often family members–now fully counts against eligibility. 'MSD flagged early on that increased hardship was expected to be experienced by disabled people, young people, older New Zealanders and Māori and Pasifika peoples. 'People who receive the accommodation supplement, by definition, already have unaffordable rents. $100 or $200 a week may not feel much for a Prime Minister out of touch with reality, but for thousands of families it's a lifeline that allows them to keep a roof over their head, put food on the table and pay their bills. 'MSD also noted that any 'savings' were likely overstated**, as costs were simply going to be shifted to emergency housing and hardship grants. 'Poverty is a political choice this coalition is repeatedly choosing. Once again, we see the wellbeing of thousands sacrificed in the name of superficial savings and cowardly games of political hot potato,' says Ricardo Menéndez March. Notes: *An estimated 13,200 households will be affected (7,000 on accommodation supplement, 6,200 on public housing subsidies). On average, the 7,000 households with boarders receiving the Accommodation Supplement will be $100/week worse off, and people with 3 boarders would be $202/week worse off. Affected households receiving public housing subsidies would see an average increase of $132/week to the cost of their rent. (Page 21 of the report) **The Government is saving $150m over four years by stripping support (Accommodation Supplement + Income Related Rent Subsidy) from around 13,200 households who have boarders. MSD has told the Government that the savings are likely to be overestimated (page 7 and bottom of page 15 of the report). This is due to people needing hardship assistance, emergency housing, etc as a result of these changes creating costs for other parts of the system.

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