Katy Loudon open to increasing the Scottish Child Payment

The Herald Scotland

4 days ago

The Scottish Child Payment currently issues £27.15 per week to families in receipt of means-tested benefits, including Universal Credit, for each child under 16.
It has been described as a "game changer", with more than 23 charities now joining The Herald's campaign, which urges the First Minister to uplift the benefit.
The Herald's campaign also demands Sir Keir Starmer abolishes the two-child benefit cap as a matter of urgency, with open letters sent to both political leaders.
Ms Loudon said child poverty was one of the key issues on the doorstep - but stressed the Scottish Child Payment had been lauded by local charities as helping to lift children in the Hamilton, Larkhall and Stonehouse constituency out of poverty.
Asked whether she agreed with The Herald's campaign on whether the Scottish Child Payment should be increased, Ms Loudon said: "It is a conversation we need to have."
But she added: "Obviously public finances are tight."
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The by-election candidate, however, refused to say whether she thought Mr Swinney was wrong to suggest parents would be encouraged not to work if the benefit increased any further.
The First Minister told The Herald in April the benefit was at its "limit", warning that further increases could "reduce the incentive to actually enter the labour market".
Those remarks drew strong criticism from the charities that backed The Herald's campaign.
It was later revealed through freedom of information requests submitted by Common Weal that the Scottish Government held no evidence to support this claim.
Ms Loudon was asked by The Herald whether Mr Swinney's claim was fair on the constituents she hoped to serve.
She did not respond, instead describing the Scottish Child Payment as "transformative".
When pressed repeatedly by The Herald on this remark, she said: 'I haven't heard the comment you're referring to'.
She added it was a 'very complex issue which is multi-factorial and the Scottish Government are taking action'.
Ms Loudon added: 'I'm really interested in the ideas which are developing. My background is in education, working with children and families and I'm really interested in the ideas that are developing around whole family support.'
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'Yes, cash straight to families is a super important part of that,' she said.
'It's also making sure that people are accessing what they need, that can be very practical support, it can be with food, it can be with access to benefits. It can be with housing and charities in this constituency are doing that amazing work.
'It's also about the emotional support. It's about wellbeing support. It's about breaking down some of the barriers that families are experiencing, whether that's fear of judgment, overwhelming information.'
Ms Loudon is thought to be the favourite in the Hamilton, Larkhall and Stonehouse by-election after Reform UK stated winning in the constituency was "improbable".
Scottish Labour, however, remain defiant they can beat the SNP.
The Scottish Child Payment has been credited for the country's progress in reducing child poverty - but experts warn flagship targets will be missed unless the benefit is increased to £40.
Child poverty rates in Scotland decreased to 22% in 2023-24, down from 26% in the previous year.
But by 2030, the Scottish Government has committed to reducing child poverty to under 10%.
Jamie Livingstone, head of Oxfam Scotland, criticised the First Minister's comments at the time.
He said: "The vast majority of parents on the lowest incomes aren't weighing up work incentives, they're weighing up whether they can afford to put food on the table."
Independent analysis by the Institute for Public Policy Research (IPPR) indicates that this increase could list an extra 20,000 children out of poverty.
Meanwhile, the Fraser of Allander Institute suggests it would lead to a further 2.5 percentage point reduction in poverty – putting the Scottish Government on track to meet its targets.