Scottish budget: much more to do to target support where it is needed most

The government said its budget was focused on: eradicating child poverty; transforming the economy to Net Zero; and in creating sustainable public services.

Finance secretary John Swinney outlined the government’s spending plans for the next year, which included several actions which have been recommended by OPFS and partners working to end poverty and promote equality: 

• Increasing Scottish benefits by the rate of inflation at September 2022 of 10.1% (apart from Scottish Child Payment which will be maintained at the recently increased level of £25 per week) 
• Raising funds for public services by increasing tax rates for those on higher incomes and for second dwellings 

• Investing £22m for free school meals during holidays 
• Increasing investment in No One left Behind and Fair Start Scotland 
• A further £30 million investment to Keep the Promise and £50 million investment in a Whole Family Wellbeing Programme, to provide holistic, preventative family support. 

However, a number of other important actions recommended in advance of the budget were absent from the announcements, including increased investment in the Scottish Welfare Fund, doubling the Scottish Carers Allowance supplement, and mitigating the two-child limit and young parent penalty through the Scottish Child Payment. 

Chief Executive of One Parent Families Scotland Satwat Rehman responded to the announcement:

“We are heartened to see that the Scottish Government has listened to several important calls from anti-poverty organisations, such as increasing taxes for the wealthiest to raise funds for public services.  

“We welcome increased investment in the Scottish Government’s employability programmes but would like to see an assurance that resources are targeted at support for parents facing the most barriers to paid work such as single parents. 

“We are also pleased that the government is raising benefits in line with inflation, which is the right thing to do and will make a real difference for low-income families who are being snowed under by rising costs.  

“However, there is more the government could – and must – do to support those who are struggling most.  

“The Scottish Government identified six priority groups in its Tackling Child Poverty Delivery Plan, including single parent families, mothers under 25, larger families, families with a baby, families with a disabled adult or child, and BAME families. Yet its spending plans do not reflect a targeted approach to supporting these groups.  

“We appreciate that the Scottish Government is operating within tight budget constraints in a difficult economic period, however it is important to remember that the government still has a duty to meet statutory child poverty targets. We believe that this won’t be possible until resources are directed towards those facing disproportionate levels of poverty. 

“We were also disappointed that the announcements did not include any commitments to alleviate the pressure on families in debt; an issue which single parents are particularly likely to be impacted by and which is all too often driven by incomes which are simply too low for living costs.

“Especially at this time of crisis, the government could step in to ensure that families are not being penalised for circumstances beyond their control.

“Overall, we support the progressive path the Scottish Government is taking and we look forward to contributing to future developments which will make Scotland a fairer society.”