“Budget choices must prioritise hardest up families” say child poverty campaigners

  • “Scandal of child poverty in a rich country must end.” 
  • Scottish child payment must rise to £30 to protect lower income families who don’t benefit from proposed council tax freeze. 

Campaigners at the Child Poverty Action Group (CPAG) in Scotland are calling for tax and spending decisions to do more to prioritise hard up families ahead of tomorrow’s Scottish budget. With the proposed £300 million council tax freeze set to benefit better off households they say the very least that is needed to protect lower income families is a £58 million investment to raise the Scottish child payment to £30 per week. CPAG were one of over 150 signatories to a letter sent to the First Minister Humza Yousaf last month urging him to deliver the increase. 

The Scottish child payment, which currently provides a vital £25 per week extra support for children in lower income families, must by law be uprated in line with inflation. However during the SNP leadership campaign the First Minister said he wanted to see it rise to £30 in his first Budget. In a pre-Budget briefing sent to all MSPs the campaigners say this is the “minimum extra investment that is needed to support lower income families and demonstrate the First Minister is genuinely ‘shifting the dial’ on child poverty.”

The group have also joined over sixty other groups today to call on all Scotland’s political leaders to build a fair tax consensus that can provide the social investment needed for ‘a more equitable, resilient, and prosperous Scotland’. They say the Scottish Budget must be a ‘pivotal moment for fundamental change.’ 

Speaking ahead of tomorrow’s budget statement John Dickie, Director of Child Poverty Action Group in Scotland, said;

“Struggling families desperately need a budget that will provide immediate support as well as help meet statutory child poverty targets. Increasing the Scottish child payment to £30 is a cost-effective investment that would provide much needed financial support to the lower income families who get little if any benefit from the proposed council tax freeze. It would make a substantive impact and demonstrate the First Minister is genuine in his desire to ‘shift the dial’ on child poverty.” 

Recognising the challenging fiscal backdrop Mr Dickie added:

“Difficult budget choices will be needed. But the right choice is to prioritise tax and spending decisions that will help end the poverty that still blights the lives of tens of thousands of children across Scotland. We are a wealthy country and we need all our political leaders to work together to harness that wealth to end the scandal of child poverty in a rich country once and for all.”

Child Poverty Action Group is calling for a Scottish Budget that:

  • Increases the Scottish child payment at the very least to £30 per week from April 2024, as committed by the First Minister in his leadership campaign. This investment is supported by the Children and Young People’s Commissioner and over 150 trade unions, faith groups, children’s charities and community organisations from across Scotland. 
  • Ensures sufficient resources are harnessed and allocated to fund the wider measures (including on childcare, employment and housing) set out in the statutory child poverty delivery plan - Best Start, Bright Futures.
  • Provides additional cash payments to families impacted by the two-child limit and the under 25 penalty in universal credit.
  • Invests in childcare so not only can the actions in Best Start, Bright Futures be delivered, but every parent can access the childcare they need, when they need it. 
  • Is bold in using tax powers in a progressive way to ensure sufficient resources are available to fully deliver on the actions that are needed to tackle child poverty. 

Notes for editors

  1. Independent economists at Fraser of Allander Institute say ‘fully funding local authorities for the freeze in council tax will most likely cost over £300m’ - £1.5bn headache for the Deputy First Minister next week at the Scottish Budget 
  2. The open letter, signed by over 150 organisations including Child Poverty Action Group, calling on the First Minister to increase the Scottish child payment to £30 and to prioritise child poverty action across government spending portfolios can be found on the End Child Poverty website 
  3. Open letter calling on all Scotland’s political leader to build a consensus on fair tax to support social investment 
  4. CPAG’s pre-budget briefing - Priorities for the 2024-25 Scottish Budget
  5. “Yousaf has previously announced he would look to increase the payment, but says he would push it to £30 per week from £25 in his first budget if elected first minister.” The Guardian - SNP leadership debate: Humza Yousaf, Kate Forbes and Ash Regan set out visions for Scotland and Twitter CPAG - Independent analysis actually suggests a payment of £40 per week will be needed to be sure child poverty falls in line with government targets