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The Herald Scotland
13 hours ago
- Business
- The Herald Scotland
Scotland's financial plan must show child poverty funding
The documents set out the Scottish Government's priorities for the next five years, and includes estimates for amounts of tax to be collected, and spending in areas like health, education and local government. Read more: Ahead of the Holyrood statement, Ms Robinson blamed the 'disappointing' outcome of the UK Government's recent Spending Review and Westminster's welfare reforms for worsening Scotland's financial outlook. She said the Scottish budget had been short-changed by £1.1 billion in day-to-day funding compared to UK departments. 'This government has delivered a balanced budget every year while taking steps to improve the overall sustainability of our finances. "This is despite a deeply challenging financial situation caused by rising global instability, persistent higher inflation and over a decade of UK austerity. 'Our disappointing settlement at the recent UK Spending Review has made the situation worse, short-changing the Scottish Government by £1.1bn in our day-to-day funding compared with UK Government departments. "This comes on top of reductions in our funding worth hundreds of millions of pounds as a result of the UK Government's proposed welfare reforms and failure to fully fund its employer National Insurance increase. 'In this context, it is important that we take action to maximise funding targeted at frontline services such as our NHS.' Shona Robison will deliver the MTFS on Wednesday (Image: Robert Perry) The MFTS is usually published each May, but this year's was delayed by four weeks due to the timing of the UK Government's multi-year Spending Review, published on June 11. As a result, MSPs will not be able to scrutinise the document until September, after the summer recess— much to the frustration of Holyrood's Finance and Public Administration Committee. According to the Scottish Fiscal Commission, the gap between what the Scottish Government spends and what it takes in is expected to grow from £1bn in 2024–25 to almost £2bn by 2027–28. The Fiscal Sustainability Delivery Plan, due to be published alongside the MTFS, is expected to set out how the government intends to close this gap—though details remain sparse. Stephen Boyd of the IPPR think tank told The Herald on Sunday that expectations were high for a more detailed and transparent strategy. 'At this stage, and given the month-long delay in publication, it is entirely reasonable to expect that long-standing criticisms will start to be addressed in this MTFS,' he said. "Information presented consistently on a year-to-year basis; more detailed information on spending priorities and future trends; more detailed information on risks and how these will be mitigated.' Mr Boyd said the strategy must outline how the Scottish Government plans to fund the First Minister's key priorities: tackling child poverty, growing the economy, addressing the climate crisis and improving public services. 'It is difficult to see how significant progress can be made on these priorities, especially the first, without spending more money,' he said. 'The MTFS should begin to set out a longer-term tax strategy, recognising that taxes will likely have to rise. 'The tax strategy published alongside this year's budget included a number of commitments for the remainder of this parliament—for example, that over half of Scottish taxpayers will pay less Income Tax than they do in the rest of the UK. 'The MTFS should begin to set out a longer-term strategy recognising that taxes will likely have to rise to respond to the demands of an ageing society and the climate crisis.' Read more: Mr Boyd said that despite increases in the block grant announced in the UK autumn budget and the Spending Review, Scotland's public finances 'remain tight'. 'Unless the Cabinet Secretary is prepared to raise taxes, portfolio funding settlements are likely to be tight, especially if—as it's reasonable to expect—health is protected. 'It is reasonable to expect that parts of the public sector—and their workforces—will be disappointed by the MTFS. 'It is entirely possible that a revised approach to pay and workforce will be signalled in the MTFS. Pay settlements have been relatively generous in the devolved public sector over recent years. 'It will be interesting to see how the Cabinet Secretary navigates this politically fraught terrain. 'As the modelling produced by IPPR Scotland and others shows, it is clear that more generous welfare payments are required to make significant progress on the First Minister's main priority of eradicating child poverty. "Yet, the First Minister recently suggested there will be no further increases in the Scottish child payment. 'The MTFS will provide a clear signal on just how serious the Scottish Government is about meeting this priority.'
The National
5 days ago
- Business
- The National
Cuts to PIP will plunge families further into poverty, research says
The UK Labour Government proposed changes to Personal Independence Payments (PIP) earlier this year which will mean only those who score a minimum of four points in at least one daily living activity will be eligible for the benefit. It is estimated up to 1.3 million people across England and Wales could lose at least some support under the changes. In Scotland, PIP is devolved, but Finance Secretary Shona Robison has warned people will also be affected because the money comes from block grant funding, meaning a cut in UK spending on the benefit will reduce Holyrood's Budget for it. READ MORE: Scottish Government names date for ditching two-child cap New research carried out by Professor Morag Treanor of Glasgow University on behalf of several charities has recommended that the UK Government must not implement any changes to Universal Credit and Personal Independence Payments if they were to result in vulnerable and disadvantaged families being pushed into even deeper poverty. Aberlour chief executive SallyAnn Kelly said the research has shown that is "exactly what could happen". "We are clear that reforms should always protect the most vulnerable and should be implemented in a manner that does not push more people into further and more entrenched poverty," she said. "This research suggests that this is exactly what could happen. We are urging the Government to think again and prevent this very harmful outcome by making changes that safeguard the most vulnerable families. "Our research and work into public debt has outlined the struggles facing families and how the cost of living crisis is leading to millions of people lacking the means to pay for their basic needs and seeing them spiralling into debt, often to public bodies, as a consequence. "If these reforms are introduced in their current shape this research strongly suggests that many of our most disadvantaged families will be pushed even deeper into debt." The report considered the levels of debt owed to public bodies, including the levels of debt experienced by disabled people and lone parent families. It found 53% of people with a disability had public debt or arrears, while 58% of lone parents with one or more disabled children did. A total of 55% of children with a disability are in a lone parent family. READ MORE: Stirling Labour councillors face no-confidence vote Those lone parent families with a disability are most likely to depend on food banks and are at a high risk of having fuel and energy debts/arrears, the report said. While 8% of lone parent families made at least one food bank request from 2022 to 2025, that rose to 17% for a lone parent with one or more disabled child and 18% for couples with one or more disabled child. The report said there is evidence that disability benefits provide a level of support and a protective blanket to disabled couple parents or lone parent families who might otherwise fall deeper and further into debt. Experts say this strongly indicates that disabled benefits are helping mitigate, to some extent, financial hardship and help prevent disabled families from plunging even further into debt. Cara Hilton, senior policy manager for Scotland at Trussell, said: "The UK Government's plans to slash support for disabled people who most need our collective protection from hunger is cruel and irresponsible. "This research clearly shows that the right support can help prevent disabled families from falling into hardship. Cutting it is ill-considered and will leave more disabled people at risk of needing a food bank. 'One of the key findings of this research is that people in disabled households are twice as likely to be referred to a food bank than people in households without a disability. If the government chooses to go ahead with cuts, these figures will only get worse." Satwat Rehman, chief executive of One Parent Families Scotland, added: "Many single parents, the majority of whom are mothers, are raising children alone and often without respite. "When disability is also part of the equation, whether a child's or their own, the pressures multiply. This report clearly shows that these families are at significantly higher risk of accruing public debts, including council tax, benefits overpayments and energy arrears. 'With the UK Government poised to introduce cuts to disability benefits, this report is a timely reminder that welfare reform must work to support, not penalise, families."
Scotsman
5 days ago
- Business
- Scotsman
SNP Government sets date for two-child benefit cap to be scrapped in Scotland
The two-child benefit cap will be removed in time for the 2026 Scottish Parliament election. Sign up to our Politics newsletter Sign up Thank you for signing up! Did you know with a Digital Subscription to The Scotsman, you can get unlimited access to the website including our premium content, as well as benefiting from fewer ads, loyalty rewards and much more. Learn More Sorry, there seem to be some issues. Please try again later. Submitting... The Scottish Government will lift the two-child benefit cap on March 2 - just two weeks before the Holyrood election campaign begins. Finance Secretary Shona Robison announced plans to scrap the cap in the 2025/26 Budget, and the Government says this is the 'fastest' a Scottish social security benefit has ever been delivered. Advertisement Hide Ad Advertisement Hide Ad The previous Conservative government introduced the cap, which restricts access to some means-tested benefits to the first two children in a family only. Social Justice Secretary Shirley-Anne Somerville. | Jane Barlow/Press Association There was an expectation the new Labour government would end the cap, but Prime Minister Sir Keir Starmer refused to do so after winning last year's general election. Social Justice Secretary Shirley-Anne Somerville will visit a nursery in Portobello on Tuesday morning to mark the announcement. Advertisement Hide Ad Advertisement Hide Ad She said the payments could work out at nearly £3,500 for affected children and could see 20,000 fewer children living in relative poverty. A date has been set for the two-child benefit cap to end in Scotland. 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 in 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. Advertisement Hide Ad Advertisement Hide Ad '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.
The Herald Scotland
6 days ago
- Politics
- The Herald Scotland
PIP cuts will push families further into poverty, research finds
Under the plans a new eligibility requirement will be introduced which will mean only those who score a minimum of four points in at least one daily living activity will be eligible for the daily living component. Claimants are assessed on categories such as preparing food, washing and bathing and toilet needs. Read More: For example, someone who is unable to cook a simple meal but can use a microwave would get two points, an individual who needs supervision or assistance to prepare or cook a simple meal would be given a score of four, and someone entirely unable to prepare and cook food would get eight. The government estimates up to 1.3 million people across England and Wales could lose at least some support under the changes. In Scotland the PIP and carers allowance are devolved, but finance secretary Shona Robison MSP has warned people north of the border will also be affected because the money comes from block grant funding, meaning a cut in UK spending on the benefit will reduce Holyrood's budget for it. New research by University of Glasgow professor Morag Treanor, on behalf of Aberlour children's charity, One Parent Family Scotland and the Trussell Trust found the proposed reforms risk further disadvantaging households with a disabled child, and in particular lone parent families. (Image: Getty/Derek McArthur) Low-income families receiving social security often have to pay significant amounts back due to things like universal credit advances, DWP loans and arrears for school meals. The research found 53% of people with a disability had public debt or arrears, while 58% of lone parents with one or more disabled children did. 55% of children with a disability are in a lone parent family. While 8% of lone parent families made at least one food bank request from 2022 to 2025, that rose to 17% for a lone parent with one or more disabled child and 18% for couples with one or more disabled child. Those with a disability and children are most likely (19%) to seek or receive a referral to a food bank. Charities have warned that cutting PIP is only likely to push such households further into poverty. Aberlour Chief Executive, SallyAnn Kelly, said: "At Aberlour we believe reforming our welfare system is necessary especially if it helps people who are able to work get into employment. However, we are clear that reforms should always protect the most vulnerable and should be implemented in a manner that does not push more people into further and more entrenched poverty. "This research suggests that this is exactly what could happen. We are urging the Government to think again and prevent this very harmful outcome by making changes that safeguard the most vulnerable families. Our research and work into public debt has outlined the struggles facing families and how the cost of living crisis is leading to millions of people lacking the means to pay for their basic needs and seeing them spiralling into debt, often to public bodies, as a consequence. "If these reforms are introduced in their current shape this research strongly suggests that many of our most disadvantaged families will be pushed even deeper into debt. This must be avoided and we would urge the government to listen to what families are saying and make the necessary changes to their proposals - changes that will protect and safeguard families, provide additional support and avoid potentially catastrophic outcomes for millions of the most vulnerable people and their children." Cara Hilton, senior policy manager for Scotland at Trussell, said: "The UK government's plans to slash support for disabled people who most need our collective protection from hunger is cruel and irresponsible. This research clearly shows that the right support can help prevent disabled families from falling into hardship. Cutting it is ill-considered and will leave more disabled people at risk of needing a food bank. 'One of the key findings of this research is that people in disabled households are twice as likely to be referred to a food bank than people in households without a disability. If the government chooses to go ahead with cuts, these figures will only get worse. Trussell's own analysis finds that 15,000 more people in disabled households in Scotland will be at risk of needing to use a food bank. But there is still time for the UK government to rethink and do what's right.' Satwat Rehman, Chief Executive of One Parent Families Scotland said: 'Many single parents, the majority of whom are mothers, are raising children alone and often without respite. When disability is also part of the equation, whether a child's or their own, the pressures multiply. This report clearly shows that these families are at significantly higher risk of accruing public debts, including council tax, benefits overpayments and energy arrears. 'At OPFS, we regularly hear from parents forced to rely on credit cards to cover basic needs like food and heating. Debt is not a result of poor budgeting, it is a direct consequence of inadequate income and rigid, punitive welfare policies. 'With the UK Government poised to introduce cuts to disability benefits, this report is a timely reminder that welfare reform must work to support, not penalise, families. We urgently need reforms that stop pulling vulnerable families under: a just approach to debt recovery, an end to harmful Universal Credit changes, and a commitment to policies that give families the stability and dignity they deserve.' A Government spokesperson said: "We are determined to create a welfare system that supports people into work and out of poverty - backed by £1 billion to help sick or disabled people find good, secure jobs. 'We will never compromise on protecting people who need our support. Claims for disability benefits are rising much faster than the number of disabled people in our country and our reforms will put the social security system on a more sustainable footing to ensure it will always be there for those who will never be able to work."
STV News
12-06-2025
- Business
- STV News
UK Government commits £200m for Acorn carbon capture project
The UK Government has committed £200m for the Acorn carbon capture project in Aberdeenshire. The pledge has followed less than 24 hours after chancellor Rachel Reeves committed to supporting the Scottish project as part of her three-year spending review. Scottish finance secretary Shona Robison previously said she was 'clearly pleased' that Westminster committed to the Acorn project, but added 'what's been committed to is not clear'. On Thursday, the UK Labour Government said it would meet 'in full' the £200m request for development funding to prepare Acorn for delivery. 'This government is putting its money where its mouth is and backing the trailblazing Acorn and Viking CCS projects,' energy secretary Ed Miliband said. 'This will support industrial renewal in Scotland and the Humber with thousands of highly-skilled jobs at good wages to build Britain's clean energy future. 'Carbon capture will make working people in Britain's hard-working communities better off, breathing new life into their towns and cities and reindustrialising the country through our Plan for Change.' The project captures emissions from industrial sites before they reach the atmosphere, storing them under the North Sea. It's hoped that the funding will accelerate the UK's mission to become a clean energy superpower. Once Acorn and Viking are operational, combined, they could remove up to 18m tonnes of CO2 from the atmosphere per year. Acorn has also said its project will safeguard around 18,000 jobs in the North Sea that would otherwise have been lost, including jobs at Grangemouth. The industry expects it will support approximately 15,000 jobs at its peak construction. As the project develops, Westminster said funding will also provide financial cover for the National Gas SCO₂T Connect project, to repurpose an existing 175 mile gas pipeline to allow CO2 captured at Grangemouth to be transported to storage facilities under the North Sea. 'We warmly welcome the UK Government's support for the Acorn project and the commitment to development funding that will enable the critical work needed to reach Final Investment Decision,' Tim Stedman, CEO Storegga, lead developer of Acorn, said. 'Building on the momentum from the Track 1 projects and significant private sector investment, this milestone is key not only for Acorn but for establishing Scotland's essential CCS infrastructure needed to grow and scale the UK's wider carbon capture and storage industry. 'We look forward to working with Government in the months ahead to understand the details of today's commitment, and to ensure the policy, regulatory and funding frameworks are in place to build and grow a world-leading UK CCS sector.' Get all the latest news from around the country Follow STV News Scan the QR code on your mobile device for all the latest news from around the country
