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The National
5 hours ago
- Business
- The National
Scotland can 'go beyond mitigating Westminster' with minimum income guarantee
A group of charities, campaigners and academics commissioned by ministers back in 2021 has now set out a detailed 'road map' to putting a minimum income guarantee in place in Scotland, saying it will be a 'fundamental change to the social contract'. The group 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. The group say the Scottish Child Payment should be doubled to £55 per week by 2031 and sanctions in the welfare system should be effectively ended as part of a package of recommendations. READ MORE: UK 'feeding Scotland poison pills', John Swinney says Experts say an interim minimum income payment could be established by 2036, in line with the relative poverty level. Russell Gunson, of the Robertson Trust, led on the report and said while Scotland had taken steps to set itself apart from the UK on social security and work, a commitment to a minimum income guarantee would show it has ambitions to go beyond mitigating Westminster policies However, he emphasised that the UK and Scottish Governments will either need to find ways to work together to ensure a minimum income guarantee can be delivered or Scotland would need to be handed more powers by Westminster. 'Across work, social security, services and costs, you can see across the UK and in Scotland, places where the current social contract is failing,' he told The National. 'The status quo isn't working, it's delivering deeper poverty and greater inequality and what we have set out is a change, a big idea that can change from the status quo into something very different in Scotland, and build that guarantee so that everyone has that sense of security to meet their full potential.' Gunson (below) went on: 'We've taken steps in Scotland that are different to the rest of the UK and in many ways that's been for the better. (Image: The Robertson Trust) 'The Scottish Child Payment and getting rid of the two-child limit by next year, these are all great steps and they are in the direction we want to go, but the report is pushing us further. 'It's a mindset shift. This is not about mitigating a big, bad Westminster government, this is about building something new in Scotland that works for Scotland.' The report recommends doubling the Scottish Child Payment, getting rid of the five-week wait for Universal Credit and scrapping the two-child limit – which Scotland has committed to do next year – as ways in which the Scottish Government can set itself up now for introducing a minimum income guarantee. But beyond this, the report recommends a 'new cooperation commission between the UK and Scottish governments' is set up, with flexibilities or additional powers to deliver a minimum income guarantee in Scotland. Gunson said: 'Beyond those first steps that are doable within existing powers, to really get to the full minimum income guarantee we would need to see either flexibility and cooperation between the two governments or further powers for Scotland to be able to really push on without so much of that flexibility and cooperation.' Asked if he felt the relationship between the governments needed to improve to make way for such a policy, he said: 'I think you would need to see cooperation between both governments. We do see that on some things, like on the two-child limit, but you also see the blindspots where that cooperation doesn't seem to be as strong, including on the winter fuel allowance.' Gunson said a minimum income guarantee would be 'transformative' and could 'future-proof' Scotland. He added he hoped to see Scotland be able to move away from the UK's Universal Credit system in the future which he believes has 'destitution built into it'. READ MORE: Misogynistic attacks on Nicola Sturgeon lead to real threats, warns Kate Forbes The report says increasing the Scottish Child Payment to £55 per week, combined with ending the two-child limit, would reduce child poverty by six percentage points alone, taking Scotland around half of the way to its national targets on child poverty for 2030. 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. Gunson 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.'
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.'
