Challenging poverty with family friendly policies

FM commits to putting more money in Scots’ pockets and urges UK Government to act.

First Minister John Swinney has said the Scottish Government is committed to putting “more money in people’s pockets” through policies that alleviate financial pressures on families as Challenge Poverty Week begins.

The First Minister said the Scottish Government’s cost of living guarantee, which includes free bus travel for 2.3 million people, more than £6,000 in early learning and childcare support for each eligible child, free prescriptions and other measures, is delivering real savings for families across the country.  

The guarantee sits alongside wider support, such as the Five Family Payments, including the Scottish Child Payment, which are reducing poverty. 

The proportion of Scottish children living in absolute poverty has reached its lowest level in 30 years and the latest figures (for 2023-24) show that the rates of both relative and absolute child poverty in Scotland were 9 percentage points lower than the UK average.   

Scottish Government policies are estimated to keep 70,000 children out of relative poverty in 2025-26. This impact is projected to grow over time to reach 100,000 children by 2028-29 – in part owing to plans to mitigate the UK Government’s two-child limit, which should keep 20,000 children out of poverty next year.  

Tackling child poverty is this government’s defining mission and our determination is backed up by a commitment to put more money in people’s pockets and deliver real savings to support families.   

There are fewer children in poverty in Scotland than the rest of the UK because we have made bold policy choices backed by an unwavering resolve. 

The Scottish Child Payment was benefitting around 322,000 children and their families as of the end of June. Our free school meals programme is providing nutritious meals to more than 230,000 primary school pupils. We have cut costs for commuters by scrapping peak rail fares. Some 2.3 million people travel free on buses. And we’re mitigating the two-child limit early next year.  

The UK Government, if it is serious about tackling poverty, must match our ambition and, at the very least, fully scrap the two-child limit so that a generation of children don’t have their opportunities limited by inaction. 

But scrapping the two-child limit should also be done alongside the removal of the benefit cap. It is unconscionable to me that the UK Government could fail to address this – it must scrap both punitive policies.  

If it does, and it matches the Scottish Child Payment and introduces an Essentials Guarantee, our modelling estimates that the UK Government could reduce relative child poverty in Scotland by 100,000 children next year.   

We have made a difference through bold, game-changing policies. The blueprint is there. It is time for the UK Government to act.

– FIRST MINISTER JOHN SWINNEY

Background 

Challenge Poverty Week – The Poverty Alliance 

The cost-of-living guarantee: 

• Lower income tax than in England for the majority of workers 
• Continuation of free prescriptions and free eye appointments 
• Free bus travel for 2.3 million people  
• Scottish undergraduate students will continue to pay no tuition fees 
• Funded childcare hours, which would otherwise cost families more than £6,000 a year per eligible child. 
• Free school meals, which save the average family who take up the offer £450 per child per year, will be expanded, and more breakfast clubs introduced. 
• Delivering Pension Age Winter Heating Payments for eligible Scottish pensioners in 2025-26
• Scrapping peak rail fares 

The Five Family Payments include: 

• The Scottish Child Payment, which is a weekly payment of £27.15 for each eligible child under 16 years of age. 
• The Best Start Grant includes three payments designed to support families at different stages, including during pregnancy and when a child starts school, including: 
• the Pregnancy and Baby Payment, which is a payment of £767.50 on the birth of the first child and £383.75 on the birth of any subsequent children 
• the Early Learning Payment, which is a payment of £319.80 per child for children between 2 and 3.5 years old to support child development 
• the School Age Payment, which is a payment of £319.80 per child to help with the costs of preparing for school 
• Best Start Foods, which is a prepaid card to buy healthy foods for eligible pregnant women and families with children under the age of three, with a minimum payment of £5.40 a week. 

The Child Poverty Action Group estimates that the two-child limit on benefits is pulling 109 more children into poverty every day.

Latest figures on child poverty rates in Scotland compared to rest of UK

Child poverty summary showing the proportion of Scottish children living in absolute poverty has reached its lowest level in 30 years

Households with children in the poorest 10% of households are also estimated to be £2,600 a year better off in 2025-26.