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STV News
3 hours ago
- Business
- STV News
Pilot of 'transformative' minimum income proposed after Scottish election
An expert group commissioned by ministers has set out a 'road map' to implementing a minimum income guarantee in Scotland, saying it will be a 'fundamental change to the social contract'. The group of charities, campaigners and academics say there should be a pilot of the policy following next year's Holyrood election. A minimum income guarantee would establish an income level below which nobody is allowed to fall, through reform to social security, work, and services. In a suite of recommendations, the group says the Scottish child payment should be doubled to £55 per week by 2031 and sanctions in the welfare system should be effectively ended. They say an interim minimum income payment could be established by 2036, in line with the relative poverty level. Some of the group's welfare changes would cost £671m per year by 2030/31, in today's prices. However these would require just over £300m of additional spending if the UK Government scraps the two-child limit and ends the five-week wait for universal credit, the group said. The costs have led the Conservatives to describe the policy as 'bizarre and unaffordable'. Work on a minimum income guarantee was first committed to in the Scottish Government's 2021 legislative programme, under Nicola Sturgeon's tenure as First Minister. Russell Gunson from the Robertson Trust chaired the expert group. He said: 'A minimum income guarantee could be transformative, putting in place a universal guarantee that's there for everyone in Scotland. '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.' Addressing questions about the affordability, Mr Gunson added: '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.' However Conservative finance spokesman Craig Hoy was dismissive of the proposal. He said: 'The SNP have made no serious attempt to rein in wasteful public spending and a soaring welfare bill. Now this report shows that a minimum income guarantee would cost billions – when Scottish taxpayers are already footing the bill for spending that is simply unsustainable and unaffordable. 'The SNP's existing plans involve benefits spending £2bn higher than other parts of the country by the end of the decade – and it's Scottish workers that will be saddled with the cost, when they are already paying the highest rates of tax in the UK. 'The SNP should immediately rule out this bizarre and unaffordable policy and reverse their reckless spending plans.' The Scottish Government has been approached for comment. Get all the latest news from around the country Follow STV News Scan the QR code on your mobile device for all the latest news from around the country
BBC News
4 hours ago
- Business
- BBC News
Report calls for minimum income guarantee pilot in Scotland
A minimum income guarantee could be piloted in Scotland following next year's Holyrood policy would establish an income level below which nobody is allowed to fall, via reform to social security, work and services.A new report for the Scottish government said the guarantee would help provide a dignified quality of life, deliver financial security, and unlock opportunities for everyone in the group of charities, campaigners and academics also recommended doubling the Scottish child payment to £55 per week by 2031 while also effectively ending sanctions in the welfare system. An interim minimum income payment could be established by 2036, in line with the relative poverty level, according to the group - commissioned by ministers and chaired by Russell Gunson from the Robertson Trust grant-maker. Social justice secretary Shirley-Anne Somerville said the Scottish government would consider the group's report and respond in due course. Some of the group's welfare changes would cost £671m per year by 2030/31, in today's the group said these would require just over £300m of additional spending if the UK government scraps the two-child limit and ends the five-week wait for universal Scottish Conservatives described the policy as "bizarre and unaffordable" due to the Mr Gunson said the guarantee could be transformative if it was implemented. He added: "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."He stated that the first step in the report were affordable with immediate effect. Conservative finance spokesman Craig Hoy said the proposal would see Scottish workers saddling the said: "The SNP have made no serious attempt to rein in wasteful public spending and a soaring welfare bill. "Now this report shows that a minimum income guarantee would cost billions - when Scottish taxpayers are already footing the bill for spending that is simply unsustainable and unaffordable."Shirley-Anne Somerville said the Scottish government were already trying to take action in a number of areas highlighted by the group's report, citing plans to end the universal credit two-child limit next year. However she added there would be no change to tax policy to help finance any guarantee. She stated: "The Scottish government is of course committed to ensuring that finances remain on a sustainable trajectory."We will continue to take forward our programme of work for doing this, which will be updated in the next Medium-Term Financial Strategy to be published later this month, alongside our fiscal sustainability delivery plan."We have no plans to change tax policy in Scotland to finance a minimum income guarantee."
Scotsman
4 hours ago
- Business
- Scotsman
Pilot of ‘transformative' minimum income proposed after Scottish election
Charities, campaigners and academics call for 'fundamental change to the social contract' Sign up to our Politics newsletter Sign up Thank you for signing up! Did you know with a Digital Subscription to The Scotsman, you can get unlimited access to the website including our premium content, as well as benefiting from fewer ads, loyalty rewards and much more. Learn More Sorry, there seem to be some issues. Please try again later. Submitting... An expert group commissioned by ministers has set out a 'road map' to implementing a minimum income guarantee in Scotland, saying it will be a 'fundamental change to the social contract'. The group of charities, campaigners and academics say there should be a pilot of the policy following next year's Holyrood election. Advertisement Hide Ad Advertisement Hide Ad A minimum income guarantee would establish an income level below which nobody is allowed to fall, through reform to social security, work, and services. In a suite of recommendations, the group says the Scottish child payment should be doubled to £55 per week by 2031 and sanctions in the welfare system should be effectively ended. They say an interim minimum income payment could be established by 2036, in line with the relative poverty level. A homeless person and their dog on the Royal Mile in Edinburgh | PA Some of the group's welfare changes would cost £671 million per year by 2030/31, in today's prices. Advertisement Hide Ad Advertisement Hide Ad However these would require 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, the group said. The costs have led the Conservatives to describe the policy as 'bizarre and unaffordable'. Work on a minimum income guarantee was first committed to in the Scottish Government's 2021 legislative programme, under Nicola Sturgeon's tenure as first minister. Russell Gunson from the Robertson Trust chaired the expert group. Advertisement Hide Ad Advertisement Hide Ad He said: 'A minimum income guarantee could be transformative, putting in place a universal guarantee that's there for everyone in Scotland. '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.' 'Affordable and doable' Addressing questions about the affordability, Mr Gunson added: 'The first steps we set out over the next five years are affordable in the current context, and doable within existing powers. Advertisement Hide Ad Advertisement Hide Ad '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.' However Conservative finance spokesman Craig Hoy was dismissive of the proposal. He said: 'The SNP have made no serious attempt to rein in wasteful public spending and a soaring welfare bill. Now this report shows that a minimum income guarantee would cost billions – when Scottish taxpayers are already footing the bill for spending that is simply unsustainable and unaffordable. Advertisement Hide Ad Advertisement Hide Ad Recommendations include doubling the Scottish child payment to £55 per week by 2031 'The SNP's existing plans involve benefits spending £2 billion higher than other parts of the country by the end of the decade – and it's Scottish workers that will be saddled with the cost, when they are already paying the highest rates of tax in the UK. 'The SNP should immediately rule out this bizarre and unaffordable policy and reverse their reckless spending plans.' Social Justice Secretary Shirley-Anne Somerville said the Government would consider the group's report and respond in due course. She said: 'The legacy of the financial crash, Brexit, and more than 10 years of UK Government austerity has meant that living standards across the UK are stagnating – pushing households further from an acceptable standard of living. Advertisement Hide Ad Advertisement Hide Ad 'We are already taking action in a number of the areas highlighted by the Group, while operating within the limits of the devolution settlement and responsible management of the public finances. 'This includes providing the Scottish Child Payment, which is only available in Scotland and which it is forecast will support the families of around 330,000 children this year. 'Meanwhile as the UK Government refuses to act to end the Universal Credit two-child limit, the Scottish Government has committed to ending this limit next year.' Advertisement Hide Ad Advertisement Hide Ad She continued: 'The Scottish Government is of course committed to ensuring that finances remain on a sustainable trajectory. 'We will continue to take forward our programme of work for doing this, which will be updated in the next Medium-Term Financial Strategy to be published later this month, alongside our fiscal sustainability delivery plan.
Daily Record
6 hours ago
- Business
- Daily Record
Scottish Government group urges £55 a week Scottish Child Payment
The Minimum Income Guarantee Expert Group has issued a report on tackling poverty. Experts have called on the SNP Government to double a lifeline benefit for low income families to £55 a week. The hike in the Scottish Child Payment would be a step towards providing a 'minimum income' of £11,500 a year for people in poverty. The devolved Government set up an expert group to examine how Ministers could deliver a guaranteed income level for Scots. One of the measures recommended is a boost to the SCP, currently set at £27.15 a week, and which is paid for every child in eligible low income families. The group wants a doubling of the payment by 2031 and an end to the two child benefit cap and the five-week wait for Universal Credit payments. They claim these policies would deliver economic growth and reduce poverty and inequality. The experts have also called for an interim minimum income guarantee in Scotland by 2036, paid on a time-limited basis for those able to work. Based on 2024/25 prices, the level would be £11,500 for a single adult, with more for couples and parents. Russell Gunson of The Robertson Trust, who is also chair of the Government's minimum income guarantee expert group, 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. '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.' Case study Jo, 46, found herself unable to work and living off benefits after a breakdown in 2017. The former bar worker was eventually diagnosed with autism and ADHD and moved from Edinburgh to social housing in Falkirk. Surviving on just £300-a-month, she said he could not afford a washing machine or proper flooring. Now back in Edinburgh, she helped shape the new report as part of a lived experience panel and hopes to train as a counsellor. She said a minimum income guarantee would offer a vital safety net and help tackle the stigma faced by people in poverty. Jo said: 'If there had been a minimum income guarantee it would have helped prevent that massive decline. I stayed really isolated, very poor, very stressed and unable to access anything. That safety net would have made a huge difference. 'The shame factor is a big one too. When you're that poor, the shame is really tough.' Satwat Rehman, another member of the group and chief executive of One Parent Families Scotland, said: ' Single parents – 90 per cent of whom are women – are among the most economically vulnerable in our society, with 41 per cent 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.'
The Herald Scotland
10 hours ago
- Business
- The Herald Scotland
Scottish Government urged to introduce minimum income
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. Read More: 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.'
