Scottish Government urged to introduce minimum income

The Herald Scotland

5 hours ago

The independent report, which was commissioned by the Scottish Government, was produced by an expert group featuring representatives from 16 leading charities and anti-poverty organisations while a separate strategy group has been chaired by Social Justice Secretary Shirley-Anne Somerville with members made up from MSPs in all five main parties in Holyrood.
Recommending a three-stage approach to achieving this, the report outlines a series of devolved measures which can be taken by the next Scottish Government between 2026 and 2031 to strengthen the existing safety net.
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This includes action in the near term, a pilot project to test and learn from, as well as doubling the Scottish Child Payment to £55 per week by 2031 and an effective end to the 'punitive' sanctions, limits and freezes in the welfare system – moving instead to a system based on a guarantee of support.
The group has recommended that in the next Scottish Parliament, a pilot scheme is established with an interim minimum income guarantee payment to be established by 2036, set at the relative poverty line.
Based on 2024/25 prices, the level would be £11,500 for a single adult, with more for couples and parents, if they have no other sources of income.
This may require direct investment of up to £5.9 billion per year if introduced tomorrow, but with economic growth and improvements in social security across the UK between now and 2036, this could be reduced significantly ahead of introduction, the report says.
In addition, the harm caused to Scotland's economy by poverty is estimated to be at least £2.4bn per year.
The first steps towards a minimum income guarantee, as proposed by the expert group, involve increasing the Scottish Child Payment, scrapping the two-child cap on benefits, and ending the five-week wait for first Universal Credit payments.
This could cost £671 million per year by 2030/31, in today's prices, or just over £300 million of additional spending if the UK Government scraps the two-child limit and ends the five-week wait for Universal Credit.
This could be funded through anticipated increases in Scotland's block grant, and if additional revenue is required beyond this, the expert group believes council tax should be reformed to create a more progressive local tax that can fairly close the gap between the money raised by council tax in Scotland and the equivalent higher levels of revenue in England.
The second stage of the report's recommendations sets out proposals for a new cooperation commission between the UK and Scottish governments, with flexibilities or additional powers to deliver a minimum income guarantee in Scotland.
Chair of the minimum income guarantee expert group, Russell Gunson from The Robertson Trust, said: 'If we've learned one thing in recent years it's that we can all need a helping hand from time to time. A minimum income guarantee could be transformative, putting in place a universal guarantee that's there for everyone in Scotland.
Russell Gunson of the Robertson Trust (Image: Quantum Communications) 'Given the levels of poverty and inequality we see, we must act urgently.
'With technological change and an ageing population, we need to build security for all to make sure we can take the economic opportunities in front of Scotland. A minimum income guarantee could future-proof Scotland.
'With greater financial security, we can empower our people to live well, meet their potential and build a better future for themselves, for their families and for the country as a whole.
'The first steps we set out over the next five years are affordable in the current context, and doable within existing powers. We can't wait – and we don't need to wait – to begin to make the changes outlined in this report.
'We know poverty, inequality, and insecurity costs us dearly in financial terms and in lost potential. If things don't change, at scale, we will simply deliver the status quo, with the deepening poverty, stark inequalities and rising mistrust and disaffection that comes with that.
'Ultimately, ending poverty and inequality in our society requires investment. Trust in politics is low at the moment because the scale of action required to build security for everyone in society is underplayed.
'A minimum income guarantee is a big idea that will build that security.'
Satwat Rehman, one of the members of the group and chief executive of One Parent Families Scotland, said a minimum income guarantee would be 'lifechanging for the families we support'.
He said: 'Single parents – 90% of whom are women – are among the most economically vulnerable in our society, with 41% living in poverty.
'Too many single parents are trapped in low-paid, part-time, insecure work while navigating complex and inadequate support systems that fail to reflect the true cost of raising a family alone.
'A minimum income guarantee would provide a lifeline, ensuring no single-parent household falls below a dignified minimum income – whether in or out of work, studying or training – and ensure families and children thrive and not just survive.'