Budget statement “bitterly disappointing” for struggling families say child poverty campaigners

Responding to the Scottish Budget statement today, the Director of the Child Poverty Action Group (CPAG) in Scotland, John Dickie, said:

“The First Minister said during his leadership campaign that he wanted to see the Scottish child payment rise to £30 per week in his first budget. It is bitterly disappointing for struggling families that he has failed to deliver. We know he had to make difficult choices but having chosen to fund a council tax freeze that financially benefits better off households it is hard to understand why his government couldn’t choose to boost the incomes of our hardest up families.”

By law (Social Security (Scotland) Act 2018) the Scottish child payment must increase with inflation, and the Finance Secretary today confirmed it would rise from £25 to £26.70 per week in line with September’s CPI inflation rate. However, the child poverty campaigners say that this is not nearly enough to ‘shift the dial’ on child poverty as the First Minister promised. 

CPAG were one of over 150 signatories to an open letter sent to the First Minister Humza Yousaf last month urging him to ensure his first Budget provided significant additional investment across government portfolios to tackle child poverty, and in particular to increase the Scottish Child Payment. 

Stalling of very real progress on child poverty “hugely concerning” 

Previous Scottish government budget choices are working to reduce child poverty, say the Child Poverty Action Group. Institute for Fiscal Studies analysis concludes that, as a result of recent Scottish tax and benefit policies, “amongst the poorest 30% of households, those with children will see their incomes boosted by around a sizeable £2,000 a year” compared to those in England and Wales. Analyses shows that child poverty in Scotland will start to fall significantly but crucially, say the campaigners, not by enough to meet Scotland’s statutory child poverty targets. 

Mr. Dickie continued:

“The harsh reality is tens of thousands of our children remain locked in poverty and the government’s own analysis shows that current policies are not adequate to meet legally binding child poverty targets. We needed to see this budget “shifting the dial” on child poverty as the First Minister promised. But it is hard to see the significant extra investment in childcare, housing, employment and social security that is so desperately needed. This Budget looks like a hugely concerning stalling in the good progress made on child poverty by the Scottish government in recent years.” 

On tax Mr Dickie commented:

“Scotland is a rich country with no shortage of wealth or income so it is absolutely right that those with the broadest shoulders contribute more to help fund the public services and social security we all need. It’s now vital that all Scotland’s political leaders work together to make full use of all devolved tax powers to harness the resources that are needed to end child poverty once and for all.  Investing in the action needed to increase parental employment and reduce child poverty all helps to grow the tax base and put Scotland’s public finances on a more sustainable footing.”

Notes for editors

CPAG media centre contact details

1. 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 
2. CPAG also signed an Open letter calling on all Scotland’s political leader to build a consensus on fair tax to support social investment 
3. CPAG’s pre-budget briefing - Priorities for the 2024-25 Scottish Budget
4. “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
5. The First Minister promised at his anti-poverty summit in May 2023 that “shifting the dial on poverty – and child poverty in particular” will be a “defining mission” of his government during this Parliament. He subsequently promised to “maximise every lever at our disposal to tackle the scourge of poverty”.