Latest news with #ShirleyAnneSomerville
The Independent
18 hours ago
- Business
- The Independent
Scotland refuses to match Labour's ‘damaging' welfare cuts
The Scottish government announced it will not mirror the planned changes to welfare disability benefits proposed by Labour. The cost-cutting measures are largely focused on the Personal Independence Payment (PIP), designed to help with extra costs incurred by living with an illness or disability. The equivalent in Scotland is the Adult Disability Payment (ADP), and the administration of which is devolved to the Scottish government. Holyrood's social justice secretary, Shirley-Anne Somerville, confirmed the decision in an official announcement, criticising the UK government for the plans. Ms Somerville said: 'The UK government's proposed reforms will be hugely damaging to those who rely on social security support, particularly during the ongoing cost of living crisis. These plans have yet to be passed at Westminster, so there is still time for the UK government to step back from this damaging policy and I strongly urge them to scrap their harmful proposals. 'The reforms do not reflect the Scottish government's values. We will not let disabled people down or cast them aside as the UK government has done. We will not cut Scotland's Adult Disability Payment. 'The UK government should follow our lead and protect the social security safety system, rather than dismantling it. If they do not, then disabled people can draw no other conclusion than the UK government remain content to balance the books on the backs of the most vulnerable.' Ms Somerville highlighted findings by the Office for Budget Responsibility (OBR) that the changes are set to push 250,000 more people into poverty, including 50,000 children. The MSP for Dunfermline claimed this threatens to undermine work to reduce child poverty, pointing also to Labour's refusal to scrap the two-child benefit cap. Work and pensions secretary Liz Kendall presented the welfare bill on Wednesday, which MPs are set to vote on next month - but are currently divided. Ms Kendall defended the reforms - aimed at encouraging more people off sickness benefits and into work - saying they were necessary as the 'social security system is at a crossroads'. She said: 'Unless we reform it, more people will be denied opportunities, and it may not be there for those who need it. "This legislation represents a new social contract and marks the moment we take the road of compassion, opportunity and dignity.' While Scotland is able to decide how to administer the ADP, the measures in the bill regarding Universal Credit are still liable to impact Scottish nationals, as this benefit is managed centrally. From April 2026, the payment rate for the health element of Universal Credit will be frozen. Those already receiving it will remain on £423.27 a month until 2029/30. However, new applicants after this month will receive a severely cut rate of £217.26 – almost half. The controversial proposals have drawn widespread criticism from charities and campaign groups. More than 100 Labour MPs are reportedly considering voting against the government on the plans as the government faces a significant rebellion.
BBC News
2 days ago
- Business
- BBC News
Scotland to recover winter fuel payment from better-off pensioners
The Scottish government says it will no longer offer its new winter fuel payment for pensioners on a universal said it would seek to recover funds via the tax system from pensioners earning more than £35,000 - matching the system announced by the UK ministers had set out plans for a payment slightly more generous than that on offer from the UK, by £3 to £5 per they faced criticism as payments would go to all pensioners - potentially including millionaires - rather than being targeted at those most in need. Talks are now taking place with the UK government to match the system south of the Justice Secretary Shirley-Anne Somerville said those receiving the payment in Scotland would be better off than their counterparts in the rest of the said pensioner households with no-one aged 80 or over would receive £ will rise to £305.10 for households with someone aged 80 or 720,000 people are expected to be eligible for the funding. Somerville said the UK government announcement last week was a "welcome, if belated" move following what she called a "a betrayal of millions of pensioners" in 2024. She added: "Following careful consideration of the options available, the Scottish government will mirror the approach taken by the UK government."We will bring forward regulations to ensure that, from this winter onwards, all pensioners will receive either £203.40 or £305.10 per household, depending on age."We are in discussion with the UK government to extend the proposed arrangements in England and Wales to recover payments from those pensioners with an individual income of more than £35,000 through the tax system." Chancellor Rachel Reeves last week confirmed the payment would be reinstated to the majority of pensioners in England, following months of anger and protest over changes implemented last Scottish government delayed plans for the pension age winter heating payment after the initial Westminster cut was in November it announced pensioners would receive at least £100 every year. The social justice secretary said the payment would be recovered automatically, meaning no-one affected would need to register with claimed this would ensure people most in need would receive a higher level of support. Somerville had said earlier in June that it was "important to have a universal system" for the payment. The Scottish Conservatives said the decision to not make the payment universal was a "slap in the face" to security spokeswoman Liz Smith said: "This constant chopping and changing by SNP ministers is causing more needless anxiety for Scottish pensioners."This latest announcement means that hundreds of thousands of Scots will not have the payment even partially restored – despite John Swinney's promise that they would."This latest slap in the face will not be forgotten or forgiven by the pensioners affected."
The Independent
3 days ago
- Business
- The Independent
Government recognises financial challenge in mitigating two-child cap
The Scottish Government recognises paying for the flagship policy of ending the two-child benefit cap will be a 'challenge', a minister has said. Social Justice Secretary Shirley-Anne Somerville said applications will open for mitigation of the welfare policy on March 2, with payments being made 'as soon as possible' afterwards – meaning it will likely take place just ahead of the Scottish Parliament election. She said the move will lift 20,000 children out of relative poverty, according to Scottish Government estimates. However the minister also told MSPs she is 'deeply disappointed' that Scotland's interim child poverty targets have not been met, saying there is no single reason for them being missed. Plans to mitigate the two-child cap were first announced last year but First Minister John Swinney said his Government needed time to set up the system. Introduced under the Conservatives, the two-child cap limits benefits in most cases to the first two children born after April 2017. Labour has cited fiscal constraints for keeping the cap, but in May the Prime Minister said he will be 'looking at all options' to tackle child poverty. Ms Somerville said Scotland cannot wait for a decision at Westminster and implementing it in March – 15 months after the initial announcement – will be the fastest a new social security has even been introduced in Scotland. Following an announcement on Tuesday morning, Ms Somerville addressed MSPs on the Government's 'tackling child poverty delivery plan'. She said it is 'deeply disappointing' that interim child poverty targets have not been met, but rates are nevertheless coming down, and she pledged to 'build on that progress' ahead of 2030 targets. Conservative MSP Liz Smith pressed the minister on how the mitigation policy will be funded, saying the Scottish Fiscal Commission (SFC) has noted a 'widening gap' between the Scottish Government's welfare spending and its funding. She said: 'Can I ask where the other cuts will be made to pay for that mitigation?' Ms Somerville said her Government is 'resolute' in tackling economic inactivity, saying people should not be punished for having children. Decisions from the UK Government have pushed more people into poverty, she claimed. Discussing the SFC's forecasts, she said: 'Those are choices that we have taken – to ensure that we are protecting disabled people and children. 'Because we need to protect them from the effects of poverty. 'Those are decisions which will obviously be set out in the work that is being taken forward by the Cabinet Secretary for Finance as we look to the sustainability of our finances. 'We recognise that challenge.' She said the 'easiest way to deal with that challenge' would be for the UK Government to scrap the two-child cap and proposals to cut disabled benefits. Scottish Labour's Paul O'Kane said: 'For all the rhetoric we've had from the First Minister and the Cabinet Secretary after 18 years in office, relative child poverty after housing costs has only fallen by 1%. 'When the Cabinet Secretary says rates are broadly stable, what she means is that the dial hasn't shifted.' The Scottish Fiscal Commission said the mitigation will cost around £150 million next year, before rising to nearly £200 million by the end of the decade. Ms Somerville said around 43,000 children would benefit initially, rising to 50,000 by the end of the decade. In March, the Institute for Fiscal Studies warned the policy could harm incentives to work because some of the lowest-paid workers could earn more on welfare than in employment. The move has been welcomed by anti-poverty charities, who have urged the UK Government to scrap the cap, with the Child Poverty Action Group saying the move would lift 350,000 children across the UK out of poverty.
The Independent
3 days ago
- Business
- The Independent
Scottish Government sets date for end of two-child cap in Scotland
The Scottish Government has announced when the two-child cap will effectively end in Scotland. The Social Justice Secretary said the Westminster policy will be mitigated from March 2 next year – just weeks before the Holyrood election. Shirley-Anne Somerville said the move will lift 20,000 children out of relative poverty, according to Scottish Government estimates. The decision was first announced last year but First Minister John Swinney said his Government needed time to set up a system to mitigate the cap. Introduced by the last Conservative UK government, the two-child cap limits benefits in most cases to the first two children born after April 2017. Labour has been reluctant to end the cap, citing economic reasons, but in May the Prime Minister said he will be 'looking at all options' to tackle child poverty, when asked about his intentions on the policy. Ms Somerville said Scotland cannot wait for a decision at Westminster. She 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.' She said the policy will begin 15 months after the initial announcement, which she said is the fastest a social security benefit in Scotland has ever been delivered. She added: '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 Scottish Fiscal Commission said the mitigation will cost around £150 million next year, before rising to nearly £200 million by the end of the decade. In March, the Institute for Fiscal Studies warned the policy could harm incentives to work because some of the lowest-paid workers could earn more on welfare than in employment. The move has been welcomed by anti-poverty charities, who have urged the UK Government to scrap the cap, with the Child Poverty Action Group saying the move would lift 350,000 children across the UK out of poverty.
BBC News
3 days ago
- Business
- BBC News
Scottish government to end two-child benefit cap from March
The Scottish government will effectively scrap the two-child benefits cap north of the border from 3 March next year, ministers have announced. The UK-wide policy prevents parents from claiming universal credit or child tax credit for more than two children, with a few Scottish government will mitigate the cap by offering payments to affected families. Social Justice Secretary Shirley Anne Somerville said the move would help keep 20,000 children out of relative poverty. The payments are due to start two months before next year's Scottish Parliament election. What is the two-child benefits cap? The two-child cap prevents most families from claiming means-tested benefits for any third or additional children born after April was introduced by Conservative ministers as part of cost-cutting measures. It has been kept in place by Sir Keir Starmer's Labour administration. However, Labour ministers have indicated in recent months that they could scrap the said the Scottish government could not wait for a decision at minister said payments would be delivered 15 months after the government announced it would mitigate the cap, which she said was the fastest a social security benefit in Scotland had ever been added: "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." In its Budget announcement last year, the Scottish government vowed to provide payments to families affected by the policy by April 2026, or earlier if said it needed data and assistance from the UK government before it could introduce the Scottish Fiscal Commission has estimated that 43,000 children in Scotland will benefit from mitigation of the cap in 2026-27. It predicts this will cost £155m in that year, rising to almost £200m by Institute for Fiscal Studies has estimated that mitigating the policy would reduce relative child poverty in Scotland by 2.3 percentage points, equivalent to 23,000 think tank described removing the cap as a "highly cost-effective policy", with an estimated annual cost of £4,500 per child lifted out of poverty. 'Real hardship' However, it has also warned mitigation could weaken incentives to work because some of the lowest-paid workers could earn more on welfare than in government's announcement was welcomed the Child Poverty Action Group in John Dickie said: "It is absolutely right that the Scottish government acts to effectively scrap the UK government's two-child benefit limit in Scotland. "Families affected, most of whom are working, are facing real hardship and the sooner these payments can be made the better."He also called on the UK government to scrap the policy "as a matter of utmost urgency". Prime Minister Sir Keir Starmer has previously said he would consider "all options" to tackle child poverty.
