What the 2026-27 Scottish budget means for single parents

What is the Scottish budget?

The Scottish budget sets out how the Scottish Government will allocate spending for the year ahead. The UK budget was announced in autumn 2025 and outlines UK-wide plans for Government spending in the year ahead. The Scottish budget outlines devolved matters for Scotland.

Find out how the UK autumn budget will impact single parents in Scotland

Most of the changes in the budget won’t come into effect until the new tax year in April 2026 or 2027, but it’s good to be aware of what will be changing so you can plan ahead.

 

Scottish Child Payment increases

In April 2026, the Scottish Child Payment will increase in line with inflation. This means it will go from £27.15 to £28.20 per week.

In April 2027, the Scottish Child Payment will increase to £40 per week for families with a baby under 1 year old.

 

Income tax thresholds for “basic” and “intermediate” bands to increase by 7.4%

From April 2026, the Scottish Government is increasing the income thresholds for the Basic and Intermediate tax bands by 7.4%.

In simple terms:
If your earnings are between £16,538 and £29,527 (the basic tax band), you will be able to earn more money before moving into a higher tax band, so you will keep a bit more of your pay. The same applies if you earn between £29,527 and £43,662 (the intermediate tax band).

Why this matters for single parents:

• On the same income, you’ll generally pay slightly less tax than you would have before.
• You’re less likely to be pushed into a higher band if your pay rises slightly
• It means you’ll see a slight increase in your take-home pay

An easy way to think about it:
Tax bands are like steps. The lower “steps” on the tax ladder have been raised, so it takes longer to step up to higher tax.

 

More support for families affected by the two-child limit

Following the Scottish Budget, the Scottish Government has confirmed that more families will now be eligible for additional payments through Social Security Scotland, such as the Scottish Child Payment and Discretionary Housing Payments (DHPs).

This will apply to families who were previously impacted by the two-child limit within Universal Credit and follows the UK Government’s announcement in November that the two-child limit will end.

DHPs can help some families affected by the benefit cap with housing costs, although they do not fully remove the cap and not everyone will be eligible.

Not all the details have been announced yet. We will update you with more information when the Tackling Child Poverty Delivery Plan is published in March.

 

Further support

If you are confused by any of this information, you can call our Helpline between 9:30am and 4pm Monday to Friday on 0808 801 0323 or ask questions at your Job Centre.

If you would rather speak to us online, you can use our live web chat or you can email us on advice@opfs.org.uk.

Our skilled Advisers are here to listen to you without stigma or judgement for whatever you need. Whether it’s just to vent, ask questions, find out information about benefits, or if you’re looking for general support – we’re here for you.

The longest you will have to wait for a response will be between the hours of 4pm on Friday and 9:30am the following Monday. We will get back to every question, query, phone call and message as quickly as possible.

 

What if I need more urgent help?

• Find out about crisis support
• How to reduce your living costs
• More information on the Scottish Welfare Fund, which provides help to those in urgent need of money to pay for food, fuel or essential household items
• Try our free budgeting and debt planner
• If you are unsure about what benefits you can claim, try our free benefits calculator. You can also contact our Helpline and we can run a benefit check for you