PROGRAMME FOR SCOTTISH GOVERNMENT:

2021 -2026

INTRODUCTION

■ 1 in 4 children in Scotland are living in poverty1 and, without further action, this figure is set to rise.2

■ However child poverty is not inevitable. The right policies, a strong legal framework and a clear commitment and adequate investment can make a huge difference

■ The new Scottish government will be under a duty to meet legally binding targets to reduce child poverty - targets agreed by all the political parties in the last parliament.3 Along with a legal commitment to put human rights at the heart of the social security system,4 and the incorporation of the UN Convention on the Rights of the Child into Scottish law,5 this provides an architecture on which to build the detailed policies that can bring child poverty down from 26% of all children, to below 18% by 2023/24, and fewer than 10% by 20306.

■ Social security powers devolved in 2016 are already being used to deliver the Scottish child payment to many families. There now needs to be sufficient investment to help ensure child poverty targets are met.

■ All Scotland’s policy levers, tax and spending powers must be used to the fullest to ensure families have the resources they need to give their children a decent start in life. Employment, education, housing, and childcare policies must be developed with the goal of preventing and ending child poverty at their heart.

■ Our Programme for Government outlines the key policies and investments that must be made. None of these solutions on their own are a silver bullet. But together they would make a huge difference to tens of thousands of children currently denied the opportunities that growing up in Scotland should offer everyone.

‘I’ve always tried to protect him from anything (financial problems). So he’s not affected by how my income is or how things are for me. He does pick up on when I’m stressed. He can see that. He senses that all the time. He’s always like “are you okay? You okay?”… The only thing I can do is be honest with him about everything, as honest as I can be, and reassure him that everything is fine. If he sees that I am down he thinks it’s his fault’Liam, lone parent of a disabled child

1in4CHILDREN IN SCOTLAND ARE LIVING IN POVERTY

SUMMARY

ensure Scotland’s interim child poverty targets are met in 2023/24, and a clear course is charted to achieve the 2030 targets;

increase the Scottish child payment to a level sufficient to ensure child poverty targets are met, at least doubling it in the first year of the parliament;

ensure ending child poverty is at the heart of policy across government: employment, childcare and housing strategies are particularly critical to ending child poverty;

end the need for food banks by repairing and strengthening the social safety net;

remove financial barriers to education for children in Scotland; and

develop Scotland’s social security system so that it supports everyone to claim the benefits they are entitled to.

CPAG in Scotland calls upon the 2021–26 Scottish parliament to:

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PRIORITISE CHILD POVERTY

Even before COVID-19, one in four children in Scotland were growing up in poverty, and without further action these rates are predicted to rise still further. Against this backdrop of rising child poverty, the pandemic has hit low-income families disproportionately hard. The economic impacts of the pandemic are still uncertain, but are expected to widen existing inequalities7 and have long-term negative impacts on low income households.

The effects of child poverty are real and significant. Despite parents best efforts when children grow up poor they miss out on the things that they should be able to take for granted; school trips, having friends over for tea, hobbies and outings, decent warm clothes, healthy meals. Poverty leads to long-term negative education and health outcomes,8 with significant costs not just to children themselves but to government and society.9.

THE CHALLENGE THE SOLUTIONThe next Scottish parliament will need to:

■ put reducing child poverty at the heart of the Scottish budget process, a goal of every budget should be to resource policies that will achieve the targets in the Child Poverty (Scotland)) Act;10

■ ensure economic recovery and business support policies contribute to achieving child poverty targets;

■ use Scotland’s tax powers to ensure the nations income and wealth is harnessed to fund the social security and infrastructure needed to prevent and reduce child poverty;11

■ ensure a full assessment of Scottish tax powers and their potential to prevent and reduce child poverty is undertaken and published;12

■ when meeting climate change targets, prioritise measures that simultaneously benefit those in poverty, and;

■ work with the UK Government, and local government in Scotland, to ensure that eradicating child poverty is at the top of the agenda.

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INVEST IN SCOTLAND’S CHILDREN

THE CHALLENGEThe introduction of the Scottish child payment is a landmark use of social security powers - a game changer for tackling child poverty. The stated policy intent of the initial payment is to reduce the rate of child poverty in Scotland by at least three percentage points, lifting up to 30,000 children in Scotland out of poverty.13 Yet we know, based on the current value of the payment, that it will not in itself go far enough to ensure child poverty targets are met.14

The Scottish child payment is currently only available for eligible children under six, but is to be rolled out for eligible children up to 16 by the end of 2022. Delivering on this must be a priority. In the meantime, payments for school-aged children entitled to free school meals have already been made in response to the pandemic, and further payments have been included in the 2021/22 Scottish budget.15 These payments are hugely valued. They need be built on and expanded to

provide financial support equivalent to the Scottish child payment until it is fully rolled out. However as these payments are currently only for those entitled to free school meals they do not reach all families who will become entitled to the Scottish child payment. This misses around 125,000 children.16 These families will eventually be entitled to the Scottish child payment, but they also need support now.

Poverty does not stop when a child turns 16, many parents remain responsible for their children long after 16, and continue to be entitled to social security support. At present the Scottish child payments ends when children turn 16 - support for these young people should continue until they start work or enter higher education.

An evaluation of the Scottish child payment is planned,17 and it is vital that any obstacles to getting the payments are identified early on to ensure no low-income families miss out. Families must be getting a means tested benefit, such as universal credit, in order to be entitled to Scottish child payment – and many claimants need specialist support to navigate the benefit systems. 18 125,000

CHILDREN ON LOW INCOMES ARE NOT ENTITLED TO FREE SCHOOL MEALS

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■ Accelerate the full rollout of Scottish child payment for families with school age children, or provide equivalent financial support to the same families that will be entitled to Scottish child payment.

■ Double the level of Scottish child payment from £10 per week to at least £20 per week within the first year of the new parliament and then increase it so that, whatever the impact of other policies, less than 18% of children are living in poverty by 2023/24.19 This will ensure the foundations are in place for the wider action needed to achieve the 2030 targets;

■ Maximise the impact of the Scottish child payment by guaranteeing sufficient funds are available to local authorities to fully mitigate the UK social security benefit cap, as has been done in relation to the ‘bedroom tax’, and consider how the two child limit could be mitigated;20

■ Extend the Scottish child payment to all parents and carers of ’qualifying young people’ i.e. to reach those with children of 16 or over who are in receipt of a qualifying benefit.21

■ Undertake a review of the Scottish child payment and its delivery mechanism within the first year of the next Tackling Child Poverty Delivery Plan. Take-up will be critical to achieving the policy intent and lessons from the initial roll out must be learnt in time to put in place any changes needed to meet the target of less than 10% of children living in poverty by 2029/30;22

■ Increase the level of Best Start grant, and consider the evidence for making Best Start grant payments universal;23 and

■ Maintain and enhance investment in welfare rights work, including in schools and health settings, to ensure all families can access the financial support they are entitled to.

THE SOLUTION

‘[I would like] just being able to treat the kids to days out or, ken, they’re talking about going to, ‘oh we’re going to the zoo this weekend or I’m going to treat the bairns to, ken we’re going to go to Nando’s or we’re going to go to this place’. Like not even just that, just hearing that they’re treating them ken. I’d just like to be able to do stuff like that.’

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£20DOUBLE THE LEVEL OF SCOTTISH CHILD PAYMENT FROM £10 PER WEEK TO AT LEAST £20 WITHIN THE FIRST YEAR

ENSURE ENDING CHILD POVERTY IS AT THE HEART OF POLICY ACROSS GOVERNMENTTHE CHALLENGEThe new Scottish government must use all the powers at its disposal if it is to meet its targets on child poverty. Putting the goal of ending child poverty at the heart of housing, employment and childcare policy development will be particularly vital to ending child poverty, whilst health, education and transport policies will all need a clear child poverty focus.

ChildcareThe expansion of childcare services in Scotland is welcome. It is vital that the expansion delivers high quality services that improve child development and outcomes, as well as enabling parents to work the hours they need and want. However, there is still a lack of affordable childcare, with UK parents facing the highest childcare costs in Europe.24 Real gaps exist, particularly for older children, children with disabilities and where parents work atypical hours. Low-paid childcare workers are

often also parents living in poverty. Adequate investment is needed to ensure childcare policies contribute to reducing child poverty by enhancing children’s experiences, removing barriers to work and improving wages and conditions of those who deliver the service.

HousingHousing costs have an important impact on levels of child poverty. In the period 2017-2020, before housing costs are taken into consideration 21% of children were living in poverty, after housing costs that figure rises to 24%.25 This reflects the inadequacy of the actual incomes families have at their disposable once housing costs, over which they often have limited control, are taken into account. Good quality, affordable family housing is still too often difficult to access.26

Lack of suitable housing has a severe impact on families on low incomes, who struggle to pay rising costs.27 Reduced support for housing costs within the UK social security system leaves

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many families with a shortfall which they must cover from other means, including benefits not meant for housing costs. This can leave families with little or nothing to live on, pushing them into deeper poverty.

EmploymentThe level of paid work in a family is a key factor in providing protection from poverty. In a family where one adult works full time and one part time, the risk of child poverty is 7%, compared to 40% where there is only part time employment.28 Yet 68% of children in poverty live in households where one, or both, parents are working. There is also conclusive evidence that child poverty, gender and disability are inextricably linked.29 Analysis suggests that removing barriers to work for mothers and for parents affected by disability, and tackling the labour market inequality they face, is necessary to address child poverty.30

68%OF CHILDREN IN POVERTY LIVE IN HOUSEHOLDS WHERE AT LEAST ONE PARENT IS WORKING

THE SOLUTIONChildcare■ Boost the provision of funded, good quality and flexible education and childcare through the delivery of the increased 1140 hours of funded childcare entitlement for young children and, acting on the recommendations of the Social Renewal Advisory Board and the National Advisory Council on Women and Girls, extend entitlement to 50 hours per week for all children between six months and five years old at the earliest opportunity;31

■ Develop comprehensive, out-of-school and holiday childcare; and

■ Invest in a ‘supply side model’ of childcare provision that invests in a well-paid,32 high quality childcare workforce.

Housing■ Ensure Scottish housing policy takes into account how interactions with UK social security provision impact on low income families;

■ Ensure an adequate supply of affordable, secure, good quality family housing

■ Explore initiatives to bring down rents to a genuinely affordable level33 and establish a definition of ‘affordable housing’ based on income and social security support available rather than comparative rent levels.

Employment■ Use public procurement and public body wage setting powers to drive improvements in the quality of work, including addressing low pay, particularly in female dominated sectors such as social care and child care; and

■ Introduce greater conditionality for companies accessing public money with requirements for them to increase the quality of work they offer, as well as improve the support they provide to those with caring responsibilities, while also strengthening voluntary accreditation initiatives.34

■ Build on the Gender Pay Gap Action Plan35 and ensure a gendered and child poverty focussed approach to all labour market policymaking;

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END THE NEED FOR FOOD BANKS IN SCOTLAND

THE CHALLENGEFoodbank use has continued to rise.36 There is no shortage of food in Scotland and reliance on charity food aid highlights the extent to which tens of thousands of families continue to experience the stress, anguish and hardship associated with income crises. Whilst individuals and communities have stepped up and tried to plug the obvious gaps in our social security system with foodbanks and others forms of charity food provision, these are no alternative to the dignity and choice that comes with having enough money to buy food for yourself and your family.

The work of CPAG and our partners in the Menu for Change project37 has laid bare the triggers of food insecurity - inadequate and insecure incomes from work and social security. It has also highlighted the role of the statutory Scottish Welfare Fund as a source of crisis support, and the need to strengthen it to ensure it plays a fuller role as a cash and rights based alternative to charity food aid.

THE SOLUTION■ A clear commitment to end the need for foodbanks by 2026;

■ maintain enhanced investment in the Scottish Welfare Fund, ensuring a cash-first approach to income crises replaces the distribution of emergency food;

■ A full independent review of the Scottish Welfare Fund and its role as an adequate safety net when families face an income crisis;

■ A dedicated support fund or entitlements with clear guidance, capable of delivering short-term recurring payments to support people leaving an abusive partner; and

■ Ensure local authorities receive sufficient funds and clear guidance to enable them to use local powers to provide payments to migrant families whose status limits their rights to social security benefits and who are at risk of destitution.40

The incorporation of the United National Convention on the Rights of the Child into Scottish law38 now means children in Scotland have their right to social security enshrined in law. However various policies, such as the UK benefit cap and two-child limit, arguably undermine this right. This lack of access to sufficient social security often pushes families to rely on foodbanks.39

Many others are often left destitute, and reliant on food banks, due to the holes in the current social security system. Our Early Warning System has identified that migrant children and their caregivers, and women leaving an abusive partner are too often left without the support they need.

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2026A CLEAR COMMITMENT TO END THE NEED FOR FOODBANKS

REMOVE FINANCIAL BARRIERS TO EDUCATION

THE CHALLENGEEvidence from our Cost of the School Day project42 shows that charging for curriculum materials, lack of digital devices and connectivity, the cost of school trips, uniform policies, transport and school meal costs continue to exclude young people from learning opportunities and heap additional pressure on already inadequate family budgets.43 The pandemic has thrown into even sharper relief how vital a laptop or tablet, and internet connectivity, are for learning.

Schools across Scotland are working hard to support children on low incomes to ensure their inclusion and participation. However action is still needed from Scottish government to ensure school education is genuinely free, and that children don’t miss out as a result of their family’s financial circumstances.

■ Ensure that every child in Scotland has their own device and the internet connectivity needed to fully participate in learning and homework;

■ Ensure that national funding settlements, guidance and accountability mechanisms remove core curriculum charges for all pupils and that costs are not attached to curriculum related trips and activities;

■ Provide further support for families struggling to pay for uniform, including increasing the minimum school clothing grant to more closely reflect actual costs;44

■ Support automatic payment of school clothing grants and delivery of free school meal entitlements in every local authority to remove barriers to application and boost uptake;

■ Support investment in advice workers in schools across Scotland, drawing on successes and financial gains of work in Dundee, Glasgow and Edinburgh; and

■ Build on the welcome roll out of free healthy school meals to all primary pupils and ensure a healthy school meal is part of the school day for all secondary as well as primary pupils, in the first instance extending entitlement to all pupils in families in receipt of universal credit or equivalent legacy benefits.

THE SOLUTION

“Children have the embarrassment of us saying ‘do you have your money? You can’t cook today’. If you’re collecting money there are other things you’re not doing.” (Teacher)

“Any info [from my school] about what benefits are available to who [would be helpful], like I said earlier a friend mentioned I may be entitled to help with my council tax and school uniforms and that has been a fantastic help, but had she not said I wouldn’t have known.” (Mum, Moray)

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BUILD A RIGHTS BASED SOCIAL SECURITY SYSTEM

THE CHALLENGEThe 2016-21 Scottish parliament oversaw the establishment of Social Security Scotland which will deliver disability and carers’ benefits alongside the Scottish child payment and other financial supports for families. Positive social security principles have been placed in law, and the intention is to create a system that focuses on the needs of the claimant. It is now important that during the next parliament these intentions are fully put into practice.

We know that when a member of a family has a disability or long-term health problem they face additional costs.45 These additional costs hit families that are already living in poverty particularly hard. Where there is a disability in the household families are more likely to be living in poverty.46 The social security system can provide some assistance with these costs – but many families do not get the help they are entitled to.47

The further development of disability and carers benefits is an opportunity to enhance support for families at particular risk of poverty and shape the nature of the Scottish social security system more generally. This is a unique opportunity to create a system that enhances rights to social security, in line with CPAG Secure Futures principles48 and the Scottish Campaign on Rights to Social Security (SCoRSS) ‘Principles for Change’.49

Specifically the next Scottish parliament must;

■ Ensure social security primary legislation, regulation and guidance is developed in such a way that rights to social security are protected and enhanced;

■ Ensure that the planned Scottish government review of adult disability:

- looks at all aspects of disability assistance;50

- looks at the effectiveness of integrating case law into the disability assistance regulations; and

- is evidence based, using data gathered from the system in Scotland, claimants and partner organisations.

THE SOLUTION

‘Anything that is going to put extra money into the family budget is a good thing, is a positive thing…. There has to be something done. There has to be radical plans.’ Liam, lone parent of a disabled child

CONTACT US

Email: epybus@cpagscotland.org.ukPhone: 0141 552 3545 Mobile: 07903 638 226

1 Child poverty statistics, Scottish Government, March 20212 ‘Wrong direction: can Scotland hit its child poverty targets?’ Resolution

Foundation, March 2019 3 Set in the Child Poverty (Scotland) Act 20174 Social Security (Scotland) Act 20185 United Nations Convention on the Rights of a Child (Incorporation)(Scotland)

Bill 20216 The targets set in the Child Poverty (Scotland) Act 20177 Scotland’s Wellbeing: The Impact of COVID-19, Scottish Government,

December20208 Child poverty – the facts, CPAG in Scotland, March 2021 9 Counting the Cost of UK Poverty, JRF 201610 See, for example, the work of Being Bold: Building Budgets for Children’s

Wellbeing, Carnegie Trust, 202111 For example IPPR suggests a £5 a week increase each year in tax paid by higher

earners in Scotland (see Better than Before, IPPR, 6 September 2020), and David Eiser suggests a review of the system of non-domestic rates (see Lets Talk About Tax, CPAG, 2019, chapter 21

12 David Eiser suggests “the scope of the review should be bold, and include, for example, options of introducing Scotland specific taxes on wealth or inheritance.” Lets Talk About Tax, CPAG, 2019

13 Scottish government forecasts suggest that the existing £10 a week Scottish child payment will lift around 30,000 children out of poverty by 2023/24.

14 Analysis from the Joseph Rowntree Foundation suggests that despite this the interim 2023/24 child poverty target enshrined in the Child Poverty (Scotland) Act will be missed by four percentage points, with 40,000 more children left in poverty than if the targets were met. However they conclude meeting the target is possible if the Scottish child payment is increased. Turning the tide on child poverty in Scotland JRF, 2021

15 Budget Bill: Finance Secretary’s statement - 9 March 2021 16 CPAG internal analysis17 Letter to the Scottish Commission on Social Security18 For example if a family loses entitlement to universal credit due to mistakes made

by the system, they will lose their entitlement to Scottish child payment and may need specialist welfare rights support to resolve the error.

19 Fraser of Allander analysis concludes that the “good news is that, based on the assumption of broad economic recovery over the next few years, our analysis shows that meeting these (Child Poverty) targets is possible with the powers that the Scottish government currently hold” and that “if the Scottish Child Payment was used alone to meet the target, a payment of £40 a week would meet the interim target and cost in the region of half a billion a year”. Poverty and inequality: looking pre- and post- pandemic Fraser of Allander Institute, 2021

ENDNOTES20 Whilst not subject to the UK social security system’s two child limit or benefit cap

the potential impact of the Scottish Child Payment is inevitably undermined by these policies. Action to mitigate the benefit cap through discretionary housing payments (DHPs) - awarded at the discretion of local authorities – is welcome. However, evidence highlights that the use of DHPs to mitigate the benefit cap is inconsistent. Unlike for claimants affected by the ‘bedroom tax’, there is currently no guarantee that a DHP will be awarded to those affected by the benefit cap. In relation to the two-child limit whilst the policy does not apply directly to the Scottish child payment, entitlement to the new payment is based on receipt of a qualifying benefit in which the two-child limit does apply. Certain families with some income lose entitlement to universal credit or tax credit when the two-child limit is applied. They also then lose entitlement to the Scottish child payment because they are not receiving a qualifying benefit.

21 This would change to rules to match the child benefit rules and allow households where a 16 – 19 year old remains entitled to child benefit to remain entitled to Scottish child payment. Such an approach is in line with a rights based approach to social security and the Scottish government’s obligations under the UNCRC.

22 The review should look at: take up rates, including take up rates of qualifying benefits and barriers to take up; the effectiveness of the current legislation approach and how to mitigate the ‘cliff edge’ that claimants face when their entitlement to a qualifying benefits ends.

23 For example Centre for Analysis of Social Exclusion research demonstrates a link between increased birth weight and universal pregnancy grants. The birthweight effects of universal child benefits in pregnancy: quasi-experimental evidence from England and Wales LSA, 2021

24 ‘These countries have the most expensive childcare’ World Economic Forum, 2019

25 ‘Poverty and Income Inequality in Scotland 2017-20’ Scottish Government, 202126 Affordable Housing Need in Scotland Post 2021 Shelter, 202027 ‘Government Can Provide a Lifeline in the Coming Economic Storm’ JRF, 202028 Additional child poverty analysis 2020 Table 6a, Scottish Government, 202029 Every Child, Every Chance: The Tackling Child Poverty Delivery Plan 2018-

2022 Scottish Government, 201830 Poverty in Scotland 2018, JRF, 201831 If Not Now, When? Scottish Renewal Advisory Board Report, 2021 and Scottish

Government’s Response to the National Advisory Council on Women and Girls, Scottish Government, 2019

32 91% of workers in childcare are women, many paid very low wages - for example comparison of wages across EU and US shows that in the UK care workers are paid 51% of the average FTE wage in UK whereas care workers in, for example, Denmark are paid 81% of the average FTE wage. See A Care-Led Recovery From Covid-19: Investing in High-Quality Care to Stimulate And Rebalance The

Economy, Feminist Economics, Vol 27 202133 For example, rent controls can potentially help to hold down rents in the private

sector34 Towards a Robust, Resilient Wellbeing Economy for Scotland: Report of the

Advisory Group on Economic Recovery Scottish Government, 202035 A fairer Scotland for women; gender pay gap action plan Scottish Government,

201936 End of Year Stats, Trusell Trust, 2021 37 Menu for Change website38 United Nations Convention on the Rights of a Child (Incorporation)(Scotland)

Bill 202139 Analysis by Sheffield University demonstrated the link between these policies and

foodbank use see Family hunger in times of austerity: families using food banks across Britain. Sheffield Political Economy Research Institute, 2018

40 e.g. people whose immigration status mean that they have no recourse to public funds or EU nationals who have no ‘right to reside’ or settled status and therefore cannot access social security.

41 Member of the Children’s Parliament, age 11, Children’s Parliament ‘The Weight on our Shoulders’ report, February 2018

42 Cost of the School Day website 43 E.g. The cost of learning in lockdown, CPAG, 202144 For example: Increase the £100 minimum school clothing grant to more closely

reflect actual costs; review the eligibility criteria for school clothing grants to ensure that more/all families on low incomes are supported and develop statutory guidance on school uniform policies to ensure consistent affordability across Scotland.

45 The Disability Price Tag, SCOPE ,201946 Child Poverty statistics , Scottish Government , March 202147 Take up rates of disability benefits could be as low as between 50% and 30%

see 1997/98 Disability Survey quoted in The take-up rate of Disability Living Allowance and Attendance Allowance: Feasibility study DWP, 2007

48 ‘Secure Futures for Children and Families’ CPAG49 The SCoRSS Principles for Change 50 including the processes that Social Security Scotland has put in place such as the

application process, the assessment process and the decision making process. (NOTE: Any review must consider the effect of the requirement to request a redetermination in the Scottish system.)

To discuss the recommendations in this Programme for Government, please contact: Ed Pybus (Policy and Parliamentary Officer)